A real estate agent fails to disclose a known material fact about a property defect that significantly affects the property's value. The buyer discovers this after settlement. Under Australian Consumer Law, what is the strongest legal basis for the buyer's claim?
Correct Answer
A) Misleading or deceptive conduct by silence under section 18
Under Australian Consumer Law, misleading or deceptive conduct can occur through silence when there is a duty to disclose material facts. Failing to disclose known defects that would influence a buyer's decision constitutes conduct that misleads by omission.
Why This Is the Correct Answer
Where an agent knows of a material defect and circumstances call for disclosure, silence can create a false impression. That is misleading conduct under section 18, the buyer's strongest basis for a claim.
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