What happens if the seller fails to disclose a defect? | Glenmore Legal
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Selling·5 min read

What happens if the seller fails to disclose a defect?

NSW law requires certain disclosures before you buy, but 'buyer beware' still applies more broadly than most buyers expect, what you can do afterwards depends on what wasn't disclosed.

GL
Glenmore Legal
Published July 2026
A row of heritage sandstone and terrace buildings against a blue sky

Finding a serious issue after settlement, a leak, unauthorised structure, or termite damage, is one of the most stressful outcomes in a property purchase. Whether you have recourse depends on what the seller was legally required to tell you.

What are sellers legally required to disclose?

NSW law requires specific disclosures in the contract, things like the planning certificate, drainage diagram, and pool compliance status. Beyond these mandated items, the general rule is caveat emptor (buyer beware): sellers aren't obliged to volunteer every fault.

When does silence become misrepresentation?

If a seller actively conceals a defect, answers a direct question dishonestly, or makes a false statement about the property, that can amount to misleading conduct, giving you grounds to pursue compensation or, in serious cases, rescission.

What should you do if you find something after settlement?

Document the issue, get expert reports (building, pest, or engineering as relevant), and get legal advice promptly, time limits apply to most claims, and evidence is strongest closest to discovery.

Frequently asked

What's the time limit to bring a claim?

It varies by claim type, but acting quickly and documenting the issue as soon as it's found gives you the strongest position.

Does a building report protect me from all defects?

No, some issues, like concealed water damage, can be missed even by a careful inspection, which is why legal review of disclosures matters too.

The bottom line

The best protection is still prevention: a thorough building and pest inspection and careful contract review before you sign catch most issues before they become post-settlement disputes.

Found an issue after settlement? Talk to us.

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This article is general information only and does not constitute legal advice. For advice on your specific circumstances, please get in touch.

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