A NSW vendor deliberately hides from the agent that the house flooded in a storm three years ago, and the agent had no other way to know. What is the agent's likely position?
Correct Answer
A) The agent is unlikely to be liable, as the vendor hid the fact
NSW guidance says agents must take reasonable steps to identify material facts, at least by asking the owner, and flood information is expected to be discoverable. However, an agent is unlikely to be liable if the vendor intentionally concealed the information and the agent could not otherwise reasonably be expected to know.
Why This Is the Correct Answer
Liability is unlikely where the vendor concealed the fact and the agent could not reasonably know.
Why the Other Options Are Wrong
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Previous Question
A NSW house was passed in at auction on the auctioneer's vendor bid of $1.4 million (invented). The next week the agent's online listing says 'Passed in at $1.4m, now for sale'. What is wrong with this?
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A sales agent tells a caller that a Kogarah unit is likely to sell between $640,000 and $700,000. What record does the Act require, and for how long?