Buying a home is a big decision often tied to a lot of emotion. But beyond what you can see at the home open, there may be things about the property that aren't so obvious and could influence your decision to buy.
Buying a home is a big decision often tied to a lot of emotion. You might fall in love with the spacious kitchen, picture summer barbecues with friends in the lush backyard, or imagine raising kids in the friendly, quiet neighbourhood. But beyond what you can see at the home open, there may be things about the property that aren't so obvious and could influence your decision to buy.
These are known as material facts.
In Western Australia, real estate agents must make every effort to find out and pass on information that could influence a buyer's decision. This is part of the industry's Code of Conduct and your friend, the Australian Consumer Law, also makes it illegal to mislead or deceive, including by leaving important information out.
So what exactly is a material fact? There's no fixed definition, but generally it's anything that would matter to a reasonable person deciding whether to buy or how much to offer for a property.
Material facts can include things like unapproved structures, non-visible structural damage, asbestos, past use of the property that could affect health (such as a drug lab), access issues, or significant changes planned nearby - think major road projects, high-rise developments or airport expansions. In some cases, psychological stigma attached to the property could be considered material if it would likely affect a reasonable buyer's decision. This could be a serious crime, such as a murder, occurring in the house.
While WA does not require sellers to fill out a form called a 'Seller Disclosure Statement', that doesn't mean buyers are on their own. Sellers are still expected to disclose material facts to their agent, and agents must pass that information on. Importantly, if you ask a direct question, the agent must answer honestly and tell you about any relevant facts they're aware of or make every effort to find out.
This is why asking the right questions matters. Before making an offer, you should raise any concerns you have and specifically ask for a Seller Disclosure Statement. You can also make your own enquiries, such as checking building approvals, reviewing available reports from Landgate, or seeking professional inspections.
If a failure to disclose material facts leads to financial loss or other damage, you may be able to take civil action or ask to terminate the contract. Consumer Protection can also investigate complaints where an agent may have breached their legal obligations to disclose material facts.
The bottom line for WA home buyers is simple: don't assume "no news is good news". Ask questions early, get information in writing, and even though real estate agents are acting in the best interest of the seller, they still have a legal obligation to you when it comes to material facts.
