Under the Competition and Consumer Act 2010, which consumer guarantee applies to real estate services?

Q: What is the correct answer to: Under the Competition and Consumer Act 2010, which consumer guarantee applies to real estate services?

The correct answer is Services must be provided with due care and skill. Option A is correct because Section 60 of the Australian Consumer Law, contained within the Competition and Consumer Act 2010, specifically guarantees that services must be provided with due care and skill. This consumer guarantee applies to all services, including real estate services such as property sales, property management, and buyer advocacy. The guarantee requires real estate professionals to perform their duties competently, using the knowledge, skill, and care that would reasonably be expected from someone in their profession. This is a statutory guarantee that cannot be excluded or limited by contract terms.

Q: What background knowledge is needed for this Consumer Protection question?

The Competition and Consumer Act 2010 (Cth) contains the Australian Consumer Law (ACL), which establishes consumer guarantees that automatically apply to the supply of goods and services. For services, the key guarantees include: services must be provided with due care and skill, services must be fit for purpose, and services must be provided within a reasonable time. These guarantees cannot be excluded or limited by contract terms and apply regardless of warranty provisions. In real estate, this means agents must perform duties competently, provide accurate advice, and meet professional standards. Breaches can result in compensation claims, service remedies, or regulatory action.

Q: What is a good way to remember the answer to this Consumer Protection question?

Remember 'SKILL' - Services must be provided with due care and SKILL. Think of a skilled tradesperson who must perform their work competently - the same applies to real estate professionals. Just as you wouldn't accept shoddy workmanship from a builder, consumers are guaranteed that real estate services will be performed with proper skill and care. When you see questions about consumer guarantees for services, immediately think 'SKILL' and look for the option that mentions due care and skill, competent performance, or professional standards. This will help you distinguish service guarantees from product warranties or contract terms.

Q: What exam tip applies to this Consumer Protection question?

For consumer guarantee questions, focus on the type of transaction - goods vs services. Real estate services (not the property itself) must meet the 'due care and skill' standard. Eliminate options about product defects, timing requirements, or pricing guarantees.

Q: How does this Consumer Protection concept apply in Australian real estate practice?

A buyer engages a buyer's agent to help purchase an investment property. The agent fails to advise about significant planning restrictions that would prevent the intended use, despite this information being readily available through council searches. The buyer discovers the restriction after settlement and suffers financial loss. Under the consumer guarantee of due care and skill, the buyer could claim compensation because a competent buyer's agent should have identified and advised about such restrictions during their professional service delivery.

Question

Consumer ProtectionAustralian Consumer LawEASY

Under the Competition and Consumer Act 2010, which consumer guarantee applies to real estate services?

Answer Options

A

Services must be provided with due care and skill

B

Properties must be free from structural defects

C

All sales must be completed within 30 days

D

Prices must be the lowest in the market