Jacinta, a long term client has approached Eden Estates to list one of her investment properties for sale. Upon inspection you notice the property has recently had the plastering redone, a full interior repaint, carpets and window furnishings replaced. When asked about the renovations Jacinta advises the previous tenants were evicted after months of complaints from neighbours due to suspicious activity.

After eviction it was evident the property had been used as a makeshift drug lab. The interior of the house was destroyed and required a substantial investment to return it to an acceptable decent condition. The works had now been completed and the property returned to its original condition. No one would ever know it had been used a drug lab.

a) What are you ethically and legally obligated to advise Jacinta about the disclosure of information required to be during the sale? Your answer must explain why disclosure is required.

b) Jacinta doesn't think anyone needs to know about the previous property use and disputes you having to disclose it. How would you handle the dispute with Jacinta?

REAL ESTATE, VICTORIA