While listing a home, the agent learns that three years ago it was the scene of a manslaughter. The vendor asks the agent not to mention it to buyers unless they ask. What must the agent do?
Correct Answer
B) Disclose it to prospective buyers, because it is a prescribed material fact
Section 52 of the Property and Stock Agents Act 2002 prohibits inducing a person to enter a contract by failing to disclose a prescribed material fact the agent knows or ought reasonably to know. Clause 60 of the Property and Stock Agents Regulation 2022 prescribes that, within the last 5 years, the property was the scene of a murder or manslaughter. A vendor's instruction cannot authorise the agent to breach this duty.
Why This Is the Correct Answer
A manslaughter within the last 5 years is a prescribed material fact that the agent must disclose.
Why the Other Options Are Wrong
Background Knowledge for Consumer Protection
Exam Tip for Consumer Protection
Common Mistakes to Avoid on Consumer Protection Questions
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Previous Question
An agent's brochure for a Penrith unit says 'This unit will double in value within five years'. The agent has no data behind the claim. How is the statement treated?
Next Question
The Australian Consumer Law (ACL), as applied in Queensland, prohibits real estate agents from engaging in: