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

Q: What is the correct answer to: Under the Competition and Consumer Act 2010, which of the following consumer guarantees 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 provides that services must be rendered with due care and skill. This consumer guarantee applies to all services, including real estate services. It requires real estate agents to perform their professional duties competently, using the skill and care that would reasonably be expected from a qualified practitioner in the field. This is a mandatory guarantee that cannot be excluded 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 (ACL), which provides 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 agency work, property management, and buyer advocacy. The guarantee is mandatory and cannot be excluded by contract. It requires professionals to meet the standard of care reasonably expected in their industry. Breaches can result in remedies including compensation, re-performance of services, or refunds.

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 work competently - real estate agents are the same. Just as you'd expect a plumber to fix pipes properly, you expect agents to handle transactions with professional competence. When you see questions about consumer guarantees and real estate services, immediately think 'SKILL' - this will remind you that the guarantee focuses on professional competence and due care, not specific outcomes or timeframes.

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

Look for the word 'services' in consumer guarantee questions. Remember that service guarantees focus on HOW the work is performed (with due care and skill), not WHAT outcomes are achieved. Eliminate options about specific results or timeframes.

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

A buyer engages a buyer's agent to find and negotiate a property purchase. The agent fails to conduct proper due diligence, misses critical planning restrictions, and doesn't negotiate effectively, resulting in the buyer overpaying for a property with significant limitations. Under the due care and skill guarantee, the buyer could seek compensation for the agent's failure to meet professional standards, even though the agent technically completed the service of finding a property.

Question

Consumer ProtectionAustralian Consumer LawEASY

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

Answer Options

A

Services must be provided with due care and skill

B

Properties must be free from all defects

C

Sale prices must represent market value

D

Settlement must occur within 30 days