Good Morning Everyone
Can I believe what Real Estate Agents tell me?
I have been recently asked whether one can rely upon what a real estate agent tells a prospective purchaser.
First and foremostly, the majority of real estate agents are hardworking and honest people. However, that said, they rely upon the information that is given to them by the vendor (seller). They are not qualified or required to undertake the necessary searches to confirm the details of a property and rely upon the knowledge of the vendor who may not be fully aware of the details of a property. You will always find when researching real estate listings, a disclaimer similar to this one, which I have taken from a property advertised on realestate.com.au:
“Disclaimer: We have obtained all information from sources we believe to be reliable, however we cannot guarantee its accuracy. Prospective purchasers are advised to carry out their own investigations.”
In the case of Hyder -v- McGrath Sales Pty Ltd [2018] NSWCA 223 the court had to decide whether McGraths in advertising that a property had plentiful parking, when in reality it did not was guilty of misleading and deceptive conduct. In this case McGraths had the following disclaimer:
“Scale in meters. Indicative only. Dimensions are approximate. All information contained herein is gathered from sources we believe to be reliable. However we cannot guarantee its accuracy and interested persons should rely on their enquiries.”
The Hyders inspect the property a number of times and despite signs indicating that the parking spaces were private property, the McGrath agents informed them that the owners had exclusive use of the private parking area. On that basis the Hyers decided to buy the property and signed a standard contract which included the following documents:
Copy of the title search that noted the rights of way;
The relevant deposited plan; and
The memorandum of transfer creating the rights of way.
The contract for sale had Special Conditions attached in which the Hyders confirmed that they had not relied upon any statements, inducements or representations made by or on behalf of the vendors.
The court decided that the real estate agent had not engaged in deceptive or misleading conduct and held that McGrath had provided information for which it had expressly or implied disclaimed responsibility.
When buying a property, it requires your solicitor or conveyancer to make all reasonable enquiries to explain the contract, the documents attached and to provide appropriate advice, prior to any exchange of contract. With every purchase that our clients undertake we make all appropriate enquiries with written advice regarding the property and discuss the purchase with you, to ensure to our best ability that the purchase meets your requirements.
If you or someone you know needs assistance with either buying or selling a property, please have them contact me.
Wishing you a wonderful day,
Jeffrey Choy
JCL Legal
0419 233 670
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Legal Disclaimer: This guide is for informational purposes only and does not constitute legal advice.
