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, explicitly states that services must be provided with due care and skill. This consumer guarantee applies to all services, including real estate services. It requires agents to perform their duties competently and professionally, using reasonable care and the skill level expected of someone in their profession. This is an automatic 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 contains the Australian Consumer Law, which establishes automatic consumer guarantees for goods and services. For services, the key guarantee is that they must be provided with due care and skill (Section 60). This applies to real estate services including sales, property management, and valuations. The guarantee means agents must perform duties competently, follow proper procedures, and exercise reasonable care. However, it doesn't guarantee outcomes like successful sales or specific prices, as these depend on market factors beyond the service provider's control.

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

Remember CARE: Consumer guarantees require Competent service, Appropriate skill level, Reasonable care, and Expert performance. Just like a doctor must provide care with skill but can't guarantee you'll never get sick again, real estate agents must provide services with due care and skill but can't guarantee market outcomes. When you see consumer guarantee questions, think CARE. Ask yourself: 'Is this about how the service should be performed (CARE) or about guaranteeing specific outcomes?' Consumer guarantees focus on service quality, not results.

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

Look for the difference between process guarantees (how services are performed) versus outcome guarantees (specific results). Consumer guarantees under Australian Consumer Law focus on competent service delivery, not market outcomes or specific timeframes.

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

A property owner engages a real estate agent to sell their home. The agent must provide services with due care and skill by conducting proper market research, preparing accurate marketing materials, following correct advertising procedures, and communicating regularly with the client. However, if the property doesn't sell within the expected timeframe or at the hoped-for price due to market conditions, this doesn't breach the consumer guarantee, provided the agent performed their duties competently and professionally throughout the process.

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

Services must come with a 12-month warranty

C

Services must result in a successful sale within 90 days

D

Services must guarantee the advertised sale price