- Property
In Australian property transactions, buyers often rely on information provided by developers, vendors or agents when making significant decisions. If that information involves false representations, material omissions or the concealment of important facts, it may constitute misleading or deceptive conduct under section 18 of the Australian Consumer Law (ACL).
Under section 236 of the ACL, buyers who suffer loss or damage as a result of misleading conduct may be able to seek compensation, subject to the applicable legal requirements.
What May Constitute Misleading Conduct?
Misleading conduct does not necessarily involve an outright lie. It may include:
- Concealing known defects in a property;
- Making unsupported representations about project risks or financial conditions;
- Failing to disclose the true transaction party or the involvement of related entities;
- Providing incomplete information that creates a misleading overall impression.
Whether conduct is misleading depends on the circumstances of each transaction.
What Does a Buyer Need to Establish?
Showing that information was inaccurate may not be sufficient. A buyer generally also needs to establish that the conduct influenced their decision and that there is a sufficient causal connection between the conduct and the loss suffered.
A key question is:
Would you have proceeded with the transaction if you had known the true circumstances?
How Can a Lawyer Help?
If you believe you have been misled in a property transaction, a lawyer can assist with:
- Reviewing contracts and disclosure documents
- Assessing potential breaches of section 18 of the ACL
- Assessing loss and causation
- Identifying and preserving relevant evidence
- Negotiating compensation or taking further legal action
Property transactions often involve significant financial commitments. If information provided by a developer, vendor or agent differs materially from the actual circumstances, obtaining legal advice early can help you assess your position and determine the appropriate next steps.
