Swan v Residential Reports Pty Ltd ACN 609 880 122

Swan brought an action against Residential Reports Pty Ltd for producing a faulty building report, leading to significant financial losses in the sale of a residential property. The dispute centred on the accuracy and reliability of the report, which was intended to provide an unbiased assessment of the property's condition for prospective buyers. The matter was heard and determined by the Australian Consumer Law Tribunal, which was tasked with resolving the complexities of the case.

The primary legal issues before the Tribunal involved the accuracy of the building report, the responsibilities of the report's preparer under the Australian Consumer Law, and the appropriate measures for compensating the buyer for the defects identified in the report. The Tribunal had to ascertain whether the report contained errors that could be classified as either factual inaccuracies or legal misstatements, and whether these errors were material enough to justify the buyer's claims for damages.

In addressing these issues, the Tribunal examined the role and obligations of the person who prepared the report, who was held liable for any loss or expense incurred by the buyer due to the report's deficiencies. The Tribunal assessed whether the report was prepared with due care and skill, and whether the defects identified in the report should be reclassified as 'major defects'. The Tribunal also considered the need to reconsider the building conditions described in the report and the implications of these findings for the buyer's compensation claims. The Tribunal found that the report contained significant errors and that the preparer was liable to compensate the buyer for the losses incurred. The Tribunal ordered the parties to obtain quotes for the rectification of the identified defects and scheduled a further hearing to assess damages in light of these quotes.

The Tribunal issued specific orders directing the parties to obtain detailed quotes for the rectification of the identified defects, including the repair of the fascias and barge boards, and the sealing of the windows. The matter was relisted for further assessment of damages on 6 July 2021 at 10:00am.