Hi all,
I have just read a property ad on realestate.com which states:
The property is flood free the owners tell us with the past two floods not even entering the property.
I know where the house is and also know it has had 6ft of fast flowing water go through it, so is the real-estate agent and owner liable for mis-information or fraud ?
Is it up to the purchaser to do there own research on the property prior to putting in an offer ?
And If you don’t find out the advert was misleading that’s your tough luck ?
It will come down to what the S149 (zoning) certificate says. If the council say it is subject to 1:100 flooding then it is possible it didn’t flood but you can always ask council for a flood map.
Its their form of advertisement. The decision still relies on the buyer, if he or she will till contiue to buy the property even though, he already knew the consequences. Do research. Interview people nearby.
Its their form of advertisement. The decision still relies on the buyer, if he or she will till continue to buy the property even though, he already knew the consequences. Do research. Interview people nearby.
Hi SMSF101,
Thank you for your comments, but Just to clarify, I am not interested in purchasing the property as I am aware of the flood issue. We do have IP's in the area and know the house and the flood path.
My query is : I believe the advert is false and misleading, which would create interest to the unknowing buyer.
Is the misleading advert possibly illegal or even a breach of the sales and tradings act, or is the advert fine, and its the buyers responsibility to inspect, carry out DD and talk to the locals, and safely assume that all adverts are false and misleading ?
I am not interested in purchasing the property as I am aware of the flood issue. We do have IP's in the area and know the house and the flood path.
Hi Scott,
Thanks.
Someone can correct me if I’m wrong but I was under the impression that with regard to property there is a legal requirement to disclose anything material to the sale and that “buyer beware” is not a defense. In contract law (tort) deliberately misleading a buyer would be considered as reason to seek damages and have a sale reversed.
Professionals such RE agents would also carry liability in such cases.
There have been cases where agents, knowing a properties history, failed to disclose its past to the buyer and the sale was reversed with damages. This has occurred in NSW I believe and involved a house that was sold after the murder of one or more of its inhabitants. The new buyer, who only found this out after buying the property, claimed that they couldn’t live in a house that had such a brutal history and that they would not have bought it had they known.
Freckle wrote:Someone can correct me if I'm wrong but I was under the impression that with regard to property there is a legal requirement to disclose anything material to the sale and that "buyer beware" is not a defense. In contract law (tort) deliberately misleading a buyer would be considered as reason to seek damages and have a sale reversed.Correct – anything materially affecting, or likely to affect, a purchase needs to be disclosed to potential buyers.
Thanks guys,
I figured there had to be some sort of repercussions.
It wouldn't be fair to any young family's to make the biggest investment of their lives, and find they have been duped by wrongful advertising.
thus, this simply implies that, be cautious enough in purchasing. although we had laws that protect buyers damages are still damages.filling to restoration takes time, energy and much more. that is why i have said that if the purchase is made be ready for the consequence,. realization here guys is that when your are in a big doubt do not purchase.
in my opinion assuming that adverts are misleading will just always put you in great doubt and anxiety on the property, rather than assuming that it is false take your chance in finding the truth in it. so you could buy wisely
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