This is written by Real Estate Guru Neil Jenman
Meanwhile Queensland's Fair Trading Minister recently said: "If a buyer specifically asks an agent about the previous history of a property, the agent is required to answer that question to the best of their knowledge."
This lame approach to real estate consumer protection is typical in Australian states.
For instance, in Queensland, an agent must take "reasonable steps" to ascertain "the facts material to the sale". But if an agent knows or finds out that a murder or worse has occurred in a house, there is no legal obligation to tell buyers unless they ask.
Legally, agents must encourage sellers to disclose "all relevant facts about the property" to, wait for it, the agent!
That's right. Full disclosure, mate, but not to buyers. Only to your Queensland cowboy agent!
Until Australian laws mandate full seller disclosure, even the most ethical agents must, subject to statutory obligations, reveal only what their seller clients authorise.
Agents who would otherwise dare to tell the whole truth about a home, whether this includes past floods, murders or illegal structures, might wind up with no sale, frightened-away buyers and very annoyed sellers.