New Australian wide consumer protection laws protect home buyers and mean that real estate agents and homeowners must now disclose a home’s baggage, including if anyone has been murdered in the home for sale.
No home buyer wants to own a home where there has been foul play, and a home buyers right to know a home’s history will be backed with million dollar fines on real estate agents [and I presume homeowners who sell a home themselves] for non-disclosure.
The Australian Competition and Consumer Commission recently gained power to fine agents up to $1.1 million for misleading their customers. [In real estate parlance, a client is the vendor not the buyer. The home buyer is the customer. the distinction comes on the basis of who hires and pays the Agent is the client, and normally this is the vendor.]
Real estate agents must now disclose to potential home buyers other things that would effect the quiet enjoyment of the property including:
- A noisy or malicious neighbour is the last thing that a home buyer wants to inherit.
- A barking dog can be a nuisance that drives people to distraction.
- Homes in flight paths, near railways, backing onto garbage depots and other noise polluters.
The fact is that these things may be the very reason that the homeowner wishes to sell, and it means that the home has a lower value to the owner. That may have to be factored into the price.
Neighbours that play loud music at odd hours are the last type of people that property buyers who work long hours want to live near.
All these instances would attract fines, and may be recourse to reverse the sale of the property.
The changes came into effect on July 1 when the ACCC merged existing State fair trading laws into a federal consumer protection law.
If you are a home buyer viewing properties, make a point of asking the real estate salesperson their understanding of the law and how they will be helping you make an informed decision in buying property.
Author: Rick Adlam, Mr Mortgage
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