Vendors must ensure that their advertised price guide isn’t misleading, intentionally or not. If it is, you could face serious legal consequences. 

The Risk: 

Underquoting, where a property is advertised at a lower price than what the seller is genuinely willing to accept, is a serious offence and can lead to hefty fines and reputational damage. 

While this strategy might generate more interest, it can lead to frustration, wasted time and potential legal trouble if buyers feel misled. 

On the flip side, overquoting - listing an inflated price - may not be illegal but can be equally problematic by significantly impacting the saleability of your home. 

That’s because a property that sits on the market for too long due to unrealistic pricing can deter buyers and weaken your negotiating position. 

Worse still, if an agent is found to have overquoted with the intent of securing your business by promising to achieve an unrealistic sales price, this can breach industry regulations, potentially impacting both the vendor and the agent. 

The Fix: 

The key to avoiding these issues is research and transparency. 

"Sellers sometimes think they can test the market with an inflated price, but South Australian regulations are clear," says Natalie Jones, Sales Director at We Connect Property.  

"Price guides must reflect a genuine estimate based on market evidence. That’s why we take the time to closely review comparable sales and provide accurate valuations - so vendors are protected from any potential misrepresentation claims. 

“By setting a compliant and competitive price, vendors not only avoid legal risks but also attract serious buyers who are more likely to proceed with the sale.” 

Legal Nightmare #2: Failing to Disclose Property Defects & Other Key Information 

When selling a home, what you don’t tell buyers can end up hurting you too.  

Many sellers assume that if a problem with their property isn’t immediately visible, they don’t need to mention it. 

However, in South Australia, vendors are legally required to disclose certain information about their property, and failing to do so can lead to disputes, compensation claims, cancellation of the sale… or even legal action. 

The Risk: 

South Australian property laws mandate that buyers have a right to be informed about: 

And while many sellers try to go down the ‘omission’ path, it’s worth remembering that buyers can (and do) order building inspections. 

If a buyer discovers an undisclosed issue after signing the contract, they may have legal grounds to back out of the sale, or even sue for damages. 

The Fix: 

Full transparency is the safest path forward.  

But understanding what must be disclosed - and how to present it correctly - can be tricky.  

To ensure full compliance and avoid post-sale disputes, sellers should: 

So the golden rule is - when in doubt, always disclose.  

It’s far better to be upfront about a property’s condition than to risk the sale falling apart later due to undisclosed issues. 

Legal Nightmare #3: Contract Breaches That Can Derail Your Sale 

Contracts are the backbone of any property transaction, but they are also one of the most common areas where sellers run into trouble. 

While they may seem straightforward, in reality, they’re filled with tiny details that can make or break a sale.  

Even minor breaches - whether due to misunderstandings, delays or miscommunication - can result in financial losses or legal action. 

So much so, that many sellers unknowingly breach their contracts, leaving themselves unintentionally exposed to financial and legal repercussions. 

The Risk: 

One of the most overlooked issues is the cooling-off period. 

 In South Australia, buyers have a statutory right to back out of a contract within a set timeframe.  

If sellers don’t handle this period correctly, they may find themselves suddenly without a buyer, which can be disruptive - especially if they’ve already committed to purchasing another property. 

Settlement delays are another frequent issue.  

A seller who isn’t prepared for settlement - whether due to outstanding paperwork, financial delays or other complications - can find themselves in breach of contract. 

This can result in penalties or, in some cases, the deal falling through altogether, creating legal (and emotional) headaches! 

A lesser-known issue when it comes to selling property is what’s known as ‘misrepresentation’.  

This refers to a property that is marketed in a way that is later found to be misleading - for instance, providing incorrect descriptions or making exaggerated claims about the property.  

In this instance, buyers may have the right to withdraw from the contract, or, if the sale has already gone through, take legal action after the fact. 

And finally, some contracts include specific clauses or special conditions (such as ‘subject to finance’ or ‘subject building inspections’), which, if not made crystal clear to both parties, can lead to disputes when settlement arrives. 

The Fix: 

To avoid these risks, sellers need clear, well-drafted contracts that align with South Australian property laws. 

Attempting to navigate contract terms alone can be risky, which is why working with a qualified real estate agent - alongside other legal professionals like a conveyancer, your lender or a property lawyer - is essential in ensuring all paperwork is accurate, deadlines are met, and financial arrangements are in place to protect your interests. 

Here are some ways you can avoid contract breaches: 

"A contract is more than just a handshake agreement - it’s a serious, legally binding document," explains Natalie.  

"That’s why sellers need to ensure they understand absolutely everything before signing, as even minor breaches can have huge consequences.  

“Having an experienced agent by your side to help manage the process significantly reduces the risk of contract issues – not least because it’s in both of your interests to ensure a smooth sale." 

Selling a home is more than just whacking up a ‘For Sale’ sign and waiting for the offers to roll on in. 

Yes, it’s an exciting journey, but the legal side of the process is something many vendors underestimate - there are plenty of potential pitfalls out there that could delay your sale, cost you cash… or even land you in legal trouble. 

But the most effective way to avoid them?  

Rather than trying to handle the legalities yourself - ensure you have the right professionals by your side.