During the course of contractural negotiations a Vendor/Purchaser or Agent may make statements about the property being offered for sale. Misrepresentation could be made verbally, in marketing or advertising material, or in writing. Generally speaking a misrepresentation is a false statement relating to present or past fact. The Agent and Vendor must be very careful about claims they make about a property. This is going to be more important than ever under the new Real Estate Agents Act, as accountability is going to be high on the Agenda for the new Board.
Here are but a few examples:
1. A statement to a Purchaser that the government valuation of a property was $21,000 where infact is was $15,500
2. A Vendor who covered up defects in the foundations of a property by filling in and papering over cracks was misrepresenting the state of the property.
Common sense must prevail, and a Purchaser should also make all due enquiries prior to entering into any Agreement for Sale and Purchase.
Cheers Kim
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