Can a Seller advertise a house as “renovated to the highest standards” when it’s full of defects?

Monday , 26, October 2015 Leave a comment


N.S.W Court of Appeal Says Yes – “buyer beware”

CASE : Williams v Pisano [2015] NSWCA 177

Initially the trial judge sided with the buyer and said the seller was responsible for misleading statements.

Vendors appealed

The buyer made a claim under under sections 18 and 30(1)(e) of the Australian Consumer Law, that provides for compensation claims to consumers relying on false, deceptive or misleading advertising.
Problem was Australian Consumer Law applies only to transactions made in trade or commerce, not private one-off deals.

HELD :
“In ordinary circumstances, a person who sells his home, whether by private treaty or by auction and whether he conducts the negotiations personally or through a real estate agent, would not be said to be undertaking those activities in the course of a trade or business or in a business context.”

Case Dismissed!

Seller is not liable for misleading advertising, Buyer should have got his own building report done.



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