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A former real estate agent has been convicted and penalised for misleading a property buyer into purchasing a dwelling classified as a “non-habitable structure”.
Consumer Protection WA said Jack Alexander Lusty, who was formerly an agent of First National Albany Real Estate at the time of the transaction, had wrongly told a home buyer she could live in a dwelling, despite it being deemed “non-habitable” by the City of Albany.
Mr Lusty pleaded guilty in the Perth Magistrates Court for making “a false or misleading representation about the use of land”, and breaching the Australian Consumer Law.
He was fined $4,000 and ordered to pay costs of $1,287 as a result.
Consumer Protection noted that the action related to the sale of a property on Bon Accord Road, Lower King. It contained a mudbrick unit classed as a “class 10A non-habitable structure”.
According to the watchdog, during a May 2021 inspection of the property, the buyer had asked the agent if the mudbrick unit could be lived in. He reportedly replied “yes”, adding it was a “liveable shed”.
It was reported that these comments were made in spite of Mr Lusty having been informed by the City of Albany that the unit did not have council approval for human habitation.
According to a statement outlining the case, the buyer only learned the truth post-settlement, when she was approached by a council employee while moving furniture into the unit.
Weighing in on the case, the Commissioner for Consumer Protection Patricia Blake once again raised the fact that agents and sales representatives have a duty to “be honest about a property during the sales process by disclosing all the known material facts to buyers, including occupancy and habitation restrictions”.
Commissioner Blake stressed: “Every buyer has the right to know the truth about a property, so they can make informed decisions about whether to go ahead with what could likely be one of the biggest investment decisions of their lives.”
She noted that “had the buyer in this case known the mudbrick unit was uninhabitable, she would have either offered a lower amount or not made an offer at all given the amount of work needed to get this property over the line with council”.
Commissioner Blake conceded that not only is the offending in breach of the law, but it also “erodes public confidence in the real estate industry”.
She reminded agents that the watchdog would “not hesitate to take action against other agents or sales reps found to be making false and misleading representations about properties available for sale on their books”.
Taking her advice one step further, she also directed some instructions to buyers, encouraging them “to make enquiries with the local authorities to confirm approvals are in place if there is any doubt”.
ABOUT THE AUTHOR
Grace Ormsby
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.
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