Caveat emptor

Caveat emptor — "let the buyer beware" — is the principle that the purchaser is responsible for investigating a property before purchase, and generally has limited recourse against the vendor for defects they could have discovered.

What it means practically

The vendor is not obliged to volunteer everything they know about the property. Once you go unconditional, discovering a problem is usually your problem.

The limits of the principle

It is not absolute. Vendors and agents cannot:

• Make false statements
• Actively conceal a defect
• Mislead under the Fair Trading Act
• Breach express warranties in the agreement

Real estate agents have specific disclosure obligations under the REA rules where they know of a defect.

Common misunderstanding

"They didn't tell me" is usually not a remedy. "They told me something untrue" often is. The distinction between silence and misrepresentation is where most disputes turn.

This is the entire reason due diligence exists. The investigation is not a formality — it is the mechanism by which you protect yourself, because the law largely will not do it for you afterwards.

Related terms

Last reviewed: 1 August 2026 · General information only, not legal advice.

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