Real estate misrepresentation Australia: when the listing lies

You found the listing. The photos looked perfect, the agent was enthusiastic, and the description ticked every box — "north-facing", "fully renovated kitchen", "quiet street", "no easements". Then you moved in, or got the building report, or checked the council records, and realised the listing was wrong. Not slightly wrong. Wrong in ways that matter.

Real estate misrepresentation is one of the most financially damaging forms of misleading conduct a consumer can encounter, because the amounts involved are large and the decision is hard to undo. The good news is that Australian Consumer Law has something to say about it — and it applies to agents, vendors, and developers alike in ways many buyers don't realise.

Quick answer

If a real estate agent or property developer made a false or misleading statement — in a listing, a brochure, at an open home, or in any other communication — that influenced your decision to buy, rent, or invest, you may have a claim under section 18 of the Australian Consumer Law. Section 18 prohibits misleading or deceptive conduct in trade or commerce. You don't have to prove the agent lied deliberately — you need to show the conduct was misleading or deceptive, or likely to mislead, and that you in fact relied on it. Remedies can include compensation for the difference in value (the most common outcome), and in some cases rescission of the contract or other court orders.

What the law actually says

The Australian Consumer Law is Schedule 2 to the Competition and Consumer Act 2010. It applies across every state and territory, and it applies to real estate transactions because buying and selling property is "trade or commerce" — even when the vendor is a private individual acting through a licensed agent.

The key provision is section 18, which says a person must not, in trade or commerce, engage in conduct that is misleading or deceptive, or is likely to mislead or deceive. There is no requirement to prove intent. A statement can be completely innocent and still breach section 18 if it creates a false impression in the mind of a reasonable buyer.

Section 29 goes further. It lists specific false representations that are prohibited in connection with goods and services — such as false statements about quality, value, or price. In property transactions, similar types of representations are more directly addressed by section 30 shown below.

Section 30 specifically targets misleading conduct in connection with land. It prohibits conduct that is liable to mislead a person about the nature or characteristics of land, or the use to which the land may be put. This catches things like misrepresenting zoning, flood overlays, heritage listings, or council approval status.

For rental disputes — where a landlord or property manager misrepresents the condition of a property — the same sections apply, though the remedies and forum may differ depending on your state's residential tenancy legislation.

What does "misleading" actually cover in practice? Courts have found the following to be capable of breaching section 18 in a real estate context:

• Advertising a property as having a certain floor area when the actual area is materially smaller.
• Describing a property as "fully renovated" when only cosmetic work was done and structural defects remained hidden.
• Stating that development approval had been obtained when it hadn't.
• Representing that a property had no encumbrances when an easement or caveat existed.
• Quoting a price guide range that was substantially below the vendor's actual reserve price (this is also caught by specific underquoting rules in several states).
• Failing to disclose known material defects — in some circumstances, silence can be misleading if it creates a false impression.

That last point is important. Misleading conduct doesn't always require an active false statement. If an agent knows about a significant defect and stays silent in a way that leads you to assume everything is fine, that silence can be conduct that is "likely to mislead" under section 18. See our deeper look at how section 18 works across different scenarios for more on this.

When this applies (and when it doesn't)

The ACL's misleading conduct provisions apply when:

• The conduct occurred in trade or commerce. A licensed real estate agent acting in the course of their business clearly satisfies this. A developer selling off-the-plan satisfies this. A private vendor selling their own home will usually not be acting in ‘trade or commerce’, meaning the ACL may not apply to them directly. However, it can apply if the vendor is carrying on a business of buying and selling property. Regardless, the ACL will still apply to any real estate agent involved.
• The statement or conduct was capable of misleading a reasonable person in your position.
• You relied on the statement — meaning it influenced your decision to buy, rent, or proceed on particular terms.
• You suffered loss as a result of that reliance.

The ACL generally does not help you when:

• You changed your mind about the property and are looking for a legal hook to exit the contract. Buyer's remorse is not a misrepresentation claim.
• The statement was clearly puffery — vague promotional language like "a wonderful lifestyle opportunity" or "great potential" that no reasonable person would treat as a statement of fact.
• You had independent advice (a building inspector, solicitor, or conveyancer) that identified or should have identified the issue before you exchanged contracts, and you proceeded anyway. Reliance may be harder to establish if you had the means to discover the truth, but it is not automatically defeated.
• The contract contained an "entire agreement" or "as is" clause and you were legally advised before signing. These clauses don't automatically defeat an ACL claim, but they complicate it — particularly for sophisticated buyers.
• The misrepresentation was made by a private individual vendor (not an agent or developer) in a genuinely one-off sale. The ACL's trade or commerce requirement may not be met.

State-based property laws — including vendor disclosure obligations and cooling-off rights — run alongside the ACL and may give you additional or alternative remedies. A conveyancer or property lawyer in your state can advise on those separately.

What to do today

If you believe you were misled about a property, the steps below give you the best chance of a good outcome:

1. Write down everything while it's fresh. What was said, when, by whom, and in what form — verbal at an open home, in the listing, in a brochure, in an email. Exact words matter.
2. Gather the evidence. Save screenshots of the listing (listings disappear fast after settlement). Collect the contract of sale, the vendor's statement, any marketing brochures, and every email or text from the agent. If the misrepresentation was verbal, note the date, time, and who else was present.
3. Get an independent assessment of the loss. If the property was described as having a floor area it doesn't have, or as being free of defects it has, you need a valuation or building report that quantifies the difference. This is your damages figure.
4. Write to the agent and their principal. A formal written complaint to the agency (not just the individual agent) puts the business on notice and starts the clock. Be specific: identify the statement, explain why it was false, and state what remedy you are seeking — compensation, a price reduction, or contract rescission. A well-drafted demand letter is often enough to prompt a settlement offer.
5. Consider a demand letter through fairgo. Generate a free ACL demand letter in about 90 seconds. The tool identifies the relevant ACL sections automatically and produces a letter you send under your own name.

What if the business refuses

If the agency or developer doesn't respond, or rejects your complaint, you have several escalation paths:

• Your state's Fair Trading body. Every state and territory has a Fair Trading or Consumer Affairs office that handles complaints about real estate agents. They can investigate, conciliate, and in serious cases take disciplinary action against the agent's licence. Find your state's office at /agencies. Fair Trading conciliation is free and often faster than going to a tribunal.
• The state consumer tribunal. For compensation claims, NCAT (NSW), VCAT (Victoria), QCAT (Queensland), and their equivalents hear misleading conduct disputes under the ACL. Filing fees are modest and you don't need a lawyer for smaller claims. Our guide to choosing the right tribunal explains the differences between them.
• The state real estate licensing authority. Agents are licensed under state legislation. A complaint to the licensing body can result in disciplinary action, licence suspension, or conditions — which is separate from your compensation claim but can be a useful lever.
• The courts. For large amounts — which real estate disputes often involve — the Supreme Court or Federal Court may be the appropriate forum, and legal representation becomes important. This is beyond the scope of a demand letter, but the demand letter is still the right first step.

One thing worth knowing: the ACCC investigates systemic conduct by businesses, not individual consumer disputes. Reporting to the ACCC may contribute to a broader investigation if many buyers have been misled by the same agent or developer, but it won't resolve your individual claim. Your state Fair Trading body and tribunal are the right forums for your specific case.

For misrepresentation about holiday or short-term rental properties — where the listing showed a very different property from what you got — the same ACL principles apply. See our article on holiday accommodation false advertising for a worked example of how section 18 plays out in that context.

Common mistakes

Buyers and renters making misrepresentation claims often trip up in the following ways:

• Waiting too long. Evidence disappears. Listings are taken down. Agents move on. The sooner you document everything and put the business on notice in writing, the stronger your position.
• Confusing a misrepresentation claim with a building defect claim. If the defect was not disclosed and not discoverable on reasonable inspection, you may have a misrepresentation claim. If the defect was discoverable and you didn't get a building inspection, your claim is weaker — though not necessarily gone.
• Assuming the contract protects the agent. Contracts of sale often contain clauses saying the buyer has inspected the property and relies on their own enquiries. These clauses can limit claims based on the contract itself, but they do not automatically defeat an ACL claim for misleading conduct. The ACL operates independently of the contract.
• Targeting the wrong party. The individual agent, the agency, and the vendor may all have different levels of exposure. A demand letter should go to the agency (as the business) and potentially the vendor, not just the salesperson who showed you through.
• Overstating the claim. Asking for the full purchase price back when the actual loss is a $30,000 difference in value makes the claim look unreasonable and can undermine credibility at tribunal. Quantify the actual loss and claim that.
• Not getting a building or valuation report. Without an independent expert opinion on what the property is actually worth — or what it would cost to fix — you have a story but no number. Tribunals need a number.

Real estate misrepresentation claims are more complex than a straightforward product refund, but the legal framework is clear and the ACL is firmly on the side of buyers who were genuinely misled. The key is acting quickly, documenting thoroughly, and putting your complaint in writing before anything else.

Related reading

• Section 18 misleading conduct — examples across different industries
• Holiday accommodation false advertising and your ACL rights
• NCAT, VCAT, QCAT — which tribunal handles your dispute?

This article is general information about Australian Consumer Law, not legal advice. The ACL is complex and your situation may have details that change the analysis. For advice on your specific case, see your state's Fair Trading body — full list at /agencies.