Consumer News

What is a material fact?

11 April 2018

By Tim McKibbin - REINSW CEO

Sales agents are bound by law to disclose ‘material facts’ when selling a property. But what are they and what has to be disclosed?

Unfortunately it’s not straightforward, but some examples given include whether the property has a building defect like asbestos, or if it was the scene of a serious crime.

However, we live in a culturally diverse country for some people superstitions can affect a sale, whereas they won’t affect another group.

There is also the possibility that the seller doesn’t tell the agent everything and an agent can’t disclose something they don’t know.

REINSW has asked the government for clearer guidelines to clear up the confusion and asked that an obligation is placed on the seller to disclose material facts in the interests of consumer protection.