What is a material fact?
Agents have an obligation to disclose known material facts about a property to potential purchasers. If an agent fails to disclosure a material fact, the agent could be prosecuted for breaching the Property, Stock and Business Agents Act 2002 and the Australian Consumer Law.
Since the decision of the Gonzales Case, it is now widely known that a violent criminal history of the property is a material fact. However, it can be difficult for agents to identify whether other known facts about the property would be considered material facts that would require agents disclosure.
Please click below to watch our short video on how agents can identify whether a known fact may be a material fact.