Case Study: Can someone sue a real estate agent for not disclosing a water problem?

23 April 2021
Nassir Bechara
The real estate agent was acting as property manager of the premises on behalf of the unit owner (also a defendant against a claim from the law firm's client), pursuant to a residential tenancy agreement. The Law firm's client was a lawful entrant on the premises pursuant to the signed lease agreement when they slipped on a pool of water, which had leaked from the shower recess onto the floor.

Case Study: Can someone sue a real estate agent for not disclosing a water problem?

CASE OVERVIEW

The real estate agent was acting as property manager of the premises on behalf of the unit owner (also a defendant against a claim from our client), pursuant to a residential tenancy agreement. Our client was a lawful entrant on the premises pursuant to the signed lease agreement when she slipped on a pool of water which had leaked from the shower recess onto the floor.

Our client suffered serious injuries due to her fall, including an injury to her left knee, a back injury, and lacerations to her ring finger, as well as psychological harm. She required hospitalisation and surgery to her right ring finger, and experienced significant loss of blood at the time.

OUR APPROACH

We made an allegation of negligence against the owner of the unit as well as the real estate agent that they never took reasonable steps to ensure that the premises were safe, fit and habitable, and in a state of good and serviceable repair. We further put forth that both defendants knew (by way of multiple complaints made by our client) that the shower recess was leaking and unsafe, and that they failed to repair, replace and prevent water leaking from the shower recess.

Photographs and expert evidence were provided, and our client was also referred for treatment from doctors and specialists to address the nature and extent of her injuries. She sustained continuing disabilities arising from the accident, including permanent impairment in relation to her right hand, lower back and left knee.

Both defendants denied liability and disputed the medical expert evidence, but after the matter was listed for lengthy hearing before the court and the parties had exchanged their liability and medical evidence, all parties agreed on an informal settlement conference to put an end to the lawsuit.

This conference was held to settle the claims from our client for damages in negligence including non-economic loss, full permanent impairment, pain and suffering, past and future out-of-pocket expenses, past and future loss of wages, past and future loss of superannuation, and past and future care. The defendants agreed to settle our client’s claim out of court, and she was awarded substantial damages.

This constituted a great victory for a tenant leasing premises pursuant to a lease, who subsequently slipped, fell and sustained serious injuries as a result of negligence and subsequently sues the owner and real estate agent.

Key to the claim were the fact that they should have addressed the leaking water from the shower recess, and proof of our client’s previous multiple complaints concerning the leaking water and the risk that was posed to her whilst renting the unit.

There are significant legal obligations and duties of care placed upon the owner of a premises if they lease the premises, to ensure that the premises are in a fit, habitable, safe state of good and serviceable repair. This obligation doesn’t end with the owner, but also applies to real estate agents acting on their behalf for the purpose of leasing or selling property.

If you are a tenant of a premises and you believe you have been mislead by a real estate agent or put at risk due to their failure to disclose or act on a danger on the premises, and you have been severely injured on the premises due to the existing hazard, you may be able to sue the owner of the unit and the real estate agent in question pursuant to your lease agreement.

If you have suffered a permanent disability and/or financial loss due to professional negligence, errors or omissions on the part of a real estate agent, you stand to receive a substantial award of damages in compensation. Contact Gerard Malouf & Partners today to discuss your potential negligence claims against a realtor.