False or misleading representarions in property transactions

Section 18 of the Australian Consumer Law (Schedule 2 of the Competition and Consumer Act 2010 (Cth)) (ACL) prohibits a person from, in trade or commerce, engaging in conduct that is misleading or deceptive or likely to mislead or deceive. This section covers an extremely wide variety of conduct within all industries and has been the subject of countless judgments, books and commentary.

This article is focussed on a different but overlapping section, relating specifically to the sale (or possible sale) of an interest in land, and therefore should be of particular interest to real estate agents, property managers, auctioneers, property valuers and developers.

False or misleading representations

Section 30 of the ACL prohibits, in connection with the sale or possible sale or promotion of an interest in land, false or misleading representations in relation to:

sponsorship, approval or affiliation of the person making the statement; the nature of the interest in land; the price payable for land; the location of land; the characteristics of land; the use to which land is capable of being put or may lawfully be put; and the existence or availability or facilities associated with land. This section applies if the representation is made in connection with transactions...