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