A property developer selling land in NSW fails to disclose a significant planning restriction affecting it. The purchaser discovers this after settlement. If the restriction materially affects the land's value and use, what is the most likely outcome?
Correct Answer
B) The purchaser may claim damages for misleading or deceptive conduct
A developer selling land acts in trade or commerce, so the Australian Consumer Law ban on misleading or deceptive conduct applies, and silence about a material restriction can be misleading. That claim survives settlement, and the purchaser may recover damages such as the loss in value. Rescission is generally lost after completion.
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A vendor fails to disclose that their property is affected by a significant planning restriction. What is the most likely legal consequence?
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A vendor in Victoria fails to include a current planning certificate in their Section 32 statement, and the buyer discovers this after exchange but before settlement. The buyer later discovers the property is affected by a planning overlay that significantly impacts development potential. What is the likely legal outcome?