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Consumer ProtectionSAMEDIUM

After settlement, an SA buyer finds an undisclosed defect in the roof framing of the house. What protection may apply?

Correct Answer

D) Claims may lie for misleading conduct, under the contract, or on builders' statutory warranties

Depending on the facts, a buyer may have claims for misleading or deceptive conduct (against an agent or a vendor acting in trade or commerce), under the contract or the Form 1 regime, and under the statutory warranties for domestic building work in the Building Work Contractors Act 1995 (SA), which can benefit later owners of the property.

Answer Options
A
The buyer has no recourse once settlement has taken place and title has transferred
B
The selling agent is automatically liable for the full cost of all repairs needed
C
Only the building inspector the buyer engaged can be held responsible for missing it
D
Claims may lie for misleading conduct, under the contract, or on builders' statutory warranties

Why This Is the Correct Answer

Several avenues may be open: misleading conduct claims against whoever made the representation in trade or commerce, contractual or Form 1 remedies, and statutory warranties for domestic building work under the Building Work Contractors Act 1995 (SA).

Why the Other Options Are Wrong

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Related Topics & Key Terms

Key Terms:

undisclosed building defectBuilding Work Contractors Actmultiple remedies
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