The office of fair Trading has issued a warning that they are cracking down on agents that advertise a property as being in a different suburb to the one in which it is really located.
As an agent has to make reasonable enquiries to establish which suburb the property is located in, it will not be a defence to say you made a mistake.
- An agent must take reasonable steps to find out or verify the facts material to the lease or sale to avoid error, omission, exaggeration or misrepresentation.
- An agent must encourage their client (the seller) to disclose all relevant facts about the property.
- If an agent has information about detrimental features of the property they are engaged to sell, the agent is required to disclose this information
to prospective buyers.
- An agent is guilty of misrepresentation if they wilfully conceal a material fact about a property, such as a previous flooding.
- An agent must not make misleading statements about the layout of a property.
- An agent must not give the impression to buyers that a property is located in one suburb when clearly it is not