In Victoria, a purchaser discovers after settlement that the vendor and agent knowingly concealed a major structural defect. Under which legislation can the purchaser seek remedies?
Correct Answer
C) The Australian Consumer Law for misleading conduct, and common law claims such as deceit.
Knowingly concealing a major defect can be misleading or deceptive conduct under the Australian Consumer Law, which applies to the agent acting in trade or commerce; silence can mislead where there is a reasonable expectation of disclosure. A vendor and agent who deliberately hide a known defect may also be liable at common law for deceit (fraudulent misrepresentation). The Sale of Land Act 1962 vendor statement rules mainly give rescission rights before settlement.
Why This Is the Correct Answer
Concealing a known defect can be misleading or deceptive conduct under the ACL, giving the buyer rights to compensation from the agent, who acts in trade or commerce. Deliberate concealment by the vendor and agent can also found a common law claim in deceit. After settlement these are the buyer's main avenues.
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