Incorrect Advertising by Agent

Hi Folks.

Just flew up for a B&P at a property in LCC yesterday.
House checked out ok (minor stuff required: leaking shower, trip hazards, handrail reinforement, etc) BUT....

Upon inspection, property only has 1 bathroom and a toilet downstairs in the laundry area.
re.com.au listing clearly shows a '2' next to the bathtub icon and the description is quoted below:

This 3 bedroom hi-set with teenage retreat or second living is currently rented for $xxx per week. Set on a xxxsqm block of land with side access, property features include 4 bedrooms & 2 bathrooms.

Obviously the lack of a 2nd bathroom changes the value (perceived or not) and expected rental return thereby causing the contract price to be way over what this place should sell for.

My question is, is the incorrect (I'll stop short of saying misleading) info enough to crash the contract?

And yes, the 2 bathrooms did come up in conversation prior to contract. I don't recall him saying the downstairs was just a toilet and I'm quite sure something like that would've stood out to me.

Cheers

BB

 

Can't you crash the contract because of the B&P?

 

Always do your due diligence, read the floor plan and the reports.

When setting up the advertisement the template is pretty limited - you can't put 1.5 toilets.

 

Didn't see the floor plan prior to signing the contract? As @Shawn said, just use something from the B&P if you can (depending on how the clause has been written).

 

Probably can but haven't received it yet. Just wondering if I could crash based on the listing information.

 

If the agent is unable (or unwilling) to provide a floor plan, is there another method this can be obtained?

 

Contract was signed on the day offer was made so didn't have sufficient time. Had to move quick.

 

5 ways:

1. Council website/GIPA request/Request copy of DA Plans
2. Project builder's website if new build
3. Commission a plan/internal survey at your cost
4. Draw it up yourself
5. Ask the question of the agent/vendors

 

Nah. Cooling off expired before Xmas. Spoke to my legal counsel and looking to crash on B&P.
Just for everyone else's knowledge, incorrect advertising is not grounds on terminating a contract. I'm not sure about other states but QLD is buyer beware. So like everyone else on this thread has mentioned, do your DD!
If you have a hostile vendor or worse, hostile agent, it could get messy.

 

I havent yet seen a contract that doesnt say the contracted property more or less as it stands is what you are buying and agent or advertising errors or misrepresentations by anyone in writing or verbally are your risk. Thats why fast inspections are recommended. It includes all defect issues apparent or not and there are no warranties other than those given in the contract (eg a builders warranty etc). You cant terminate for the toilet issue. Thats a reason not to sign, not to revoke.

The need to just rush into signing a contract is not a good strategy. Thats a salesman talking. You should have sought legal advice in the cooling off period AND included a condition in your offer re the obtaining of legal advice within the cooling off also. Its always worthwhile walking straight to your / local solicitor and seeking advice before signing. Amazing what they can find.

 

Probably not. I have seen houses listed as two bathrooms where the plan shows one bathroom and a separate toilet!! Maybe this is a new trend?? And most listings include disclaimers putting the onus on the buyer to verify details.

Crashing on a B&P that only shows minor issues, probably consistent with the age of the property, is unlikely, but will depend on the wording of the clause in your contract. And you may have to provide the report to justify. My daughter crashed a contract under B&P conditions in Qld (undisclosed substantial termite damage) and had to supply the report to the vendors solicitor.
Marg

 

Yes you have grounds to sue the agent for false and misleading conduct under Australian Consumer Law.

 

Must have been cheap if you committed/signed so quickly.
Surely you can make it work on the basis that funds saved could be used to improve, thus improving your return ?

Good luck

 

Not referring to this thread at all, just in general. Under ACL, is there defense via "you saw it before you bought it?"

 

The trend is to list anything that has a toilet as a bathroom, but it strictly should not be listed as a 2 bathroom.

 

Yes, that is what would be argued by the otherside. Mistake - and it was there to see. A lot of these deceptive cases involve off the plan sales where there is no opportunity to see first.

 

I wouldn't say cheap but it was good yield. Competition is fierce for this type of product too so had to get it secured quick.

Problem is tenant is paying above market rent due to personal circumstances. If it was 4/2/2 I could still make it work but the place is essentially a 4/1/2 without dual living potential.