Can I get my deposit back if the real estate agent lied about the land's zoning?

Jurisdiction: Australia • Practice Area: Tenancy Law• Published October 23, 2026

The situation

I am currently in Victoria and I am feeling very stressed about a property purchase I made last month. Back on 12 August, I attended an open house for a large block of land in the outer suburbs. The real estate agent explicitly told me, and even wrote it down in a printed brochure, that the land was zoned for residential development and could be used to build a multi-unit complex. Based on this specific information, I signed a contract and paid a $50,000 deposit on 25 August. However, after I engaged a private surveyor last week to prepare for construction, I discovered that the land is actually zoned for agricultural use only and cannot be used for any residential building works. I have already contacted the real estate agency to demand my money back, but they are claiming that the contract was 'as is' and that I should have done my own due diligence before signing. I feel like I have been completely misled about what I can actually do with the property. I am unsure if I have any legal grounds to cancel the contract and recover my full $50,000 deposit because the agent gave me false information about the land's characteristics and its lawful use.

Quick Summary

It is likely you have legal grounds to recover your $50,000 deposit because the agent made false claims about the land's use. Under Australian consumer law, agents are prohibited from misrepresenting what a property can be used for.

Detailed Analysis

In your situation, the real estate agent's actions appear to violate the protections provided by the Competition and Consumer Act 2010. Specifically, the law prohibits certain behaviors during the sale of land. Under the law, a person must not "make a false or misleading representation concerning... the use to which the land is capable of being put or may lawfully be put" [cite:au-competition-consumer-2010-sch2-sec30]. This means that if an agent tells you that you can build a multi-unit complex on a block of land, but the legal zoning only allows for agriculture, they have made a false representation regarding the lawful use of that land. Because the agent explicitly told you the land was for residential development and even put this in a printed brochure on 12 August, this constitutes a specific claim about the land's characteristics and use. This is a serious matter because the law states that a person commits an offence if they, in trade or commerce, make a false or misleading representation concerning "the characteristics of the land; or... the use to which the land is capable of being put or may lawfully be put" [cite:au-competition-consumer-2010-sch2-sec152]. The agent's claim that the contract was 'as is' and that you should have performed your own due diligence does not necessarily override these consumer protections. While buyers are expected to be careful, the law prevents sellers and agents from actively providing false information to induce a sale. However, the law provided does not explicitly state the specific process for a buyer to automatically rescind (cancel) a contract and get a deposit back; it focuses on the fact that the agent's conduct is an offence and a breach of consumer law. Whether you can successfully cancel the contract depends on how the specific terms of your signed contract on 25 August interact with these statutory breaches.

Statutory Citations

Legal Citation: Competition and Consumer Act 2010 (Schedule 2 ACL) § Schedule 2, Section 30 — False or misleading representations about sale etc. of land
"A person must not... make a false or misleading representation concerning... the use to which the land is capable of being put or may lawfully be put"
View Official Legislation →
Legal Citation: Competition and Consumer Act 2010 (Schedule 2 ACL) § Schedule 2, Section 152 — False or misleading representations about sale etc. of land
"A person commits an offence if the person... makes a false or misleading representation concerning... the characteristics of the land; or... the use to which the land is capable of being put or may lawfully be put"
View Official Legislation →

Important Legal Disclaimer

General legal information, not formal legal advice. The information provided on LawAsked does not constitute formal legal advice and creates no attorney-client relationship. If you require legal assistance, please consult a licensed attorney in your jurisdiction.

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