All Topics / Legal & Accounting / Misleading Info by Agent

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  • Profile photo of kateej03kateej03
    Participant
    @kateej03
    Join Date: 2011
    Post Count: 112

    Hi,

    I purchased a property a couple of months ago that had DA approval. The agent had informed me that the approval was for two lots behind the existing house and gave me (and everyone else at the open) the 'approved' plans that showed the subdivision. I then went away and did my DD and got the approval with the conditions from the surveyor, got quotes from my surveyor to meet the conditions etc.

    We have just lodged to the planning commission (in WA) for endorsement of the conditions to be told that the plan we have does not match the plan that has been approved, and the approved plan showed two lots with a proposed 2nd lot. We were very surprised as we have got clearances from Western Power, Water Corp and the local council for the 3 lot subdivision.

    My question is, is there anything we can do in regards to the agent – they gave us a completely random plan (that was from the original surveyor) and said it was the approved plans and also has on the listing approval for retaining the house and adding two units out the back. It has now cost us about 4 more months holding costs plus extra for a new submission for approval.

    Thanks,

    Kate

    Profile photo of Nigel KibelNigel Kibel
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    @nigel-kibel
    Join Date: 2005
    Post Count: 1,425

    You would need to seek legal advice to be sure however I would think that the agent has misrepresented the property to you so you may have a case to take legal action. However it is important to seek advice. It is also important that you do your own independent due diligence before you purchase.

    Nigel Kibel | Property Know How
    http://propertyknowhow.com.au
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    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    Hi Kate,

    unless you can prove that the agent has modified the plans which you received, the agent must rely on the information provided to them by the vendor. If the vendor has inadvertently or intentionally provided different plans, you may have a case with the vendor.

    It may just be a case that your DD failed at the first stage – matching the approved plans with the approval. 

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    misleading and deceptive conduct under the Australia Consumer Law. See schedule 2 of the Competition and Consumer Act 2010

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of fragarcolinfragarcolin
    Member
    @fragarcolin
    Join Date: 2013
    Post Count: 16

    You are absolutely right Nigel.

    Profile photo of kateej03kateej03
    Participant
    @kateej03
    Join Date: 2011
    Post Count: 112

    Hi Everyone,

    I just wanted to say thanks to all who replied. I have had a bit of a battle with the agent but have been paid out a fee that I am happy with to compensate. The agent has taken responsibility for the mistake and I have learnt many lessons in the process! We now have sold the blocks subject to new titles and looks like we will make a healthy profit.

    Again thanks for the replies.

    Kate 

    Profile photo of TateTate
    Member
    @tate
    Join Date: 2013
    Post Count: 5
    Terryw wrote:
    misleading and deceptive conduct under the Australia Consumer Law. See schedule 2 of the Competition and Consumer Act 2010

    This is indeed true and has been confirmed in the NSW Court of Appeal in Statewide Developments Pty Ltd v Higgins [2011] NSWCA 35.

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