Home / Real estate / AI property listings and the Australian Consumer Law: what agents need to check

AI property listings and the Australian Consumer Law: what agents need to check

AI can write a listing in a minute, and it can invent a feature just as quickly. Here's where AI property copy goes wrong, why it's your problem rather than the software's, and a prompt that checks every claim.

6 min read · Updated 10 October 2026 · ChatGPT, Claude or Gemini

Are agents responsible for mistakes in AI-written listings?

Yes. Under the Australian Consumer Law, agents and agencies are responsible for every claim in an ad they publish, however it was written. Section 18 prohibits misleading or deceptive conduct and section 30 covers false representations about land. Check every feature, distance, view, school-zone and zoning claim in an AI listing against your own notes before it goes live.

Under the Australian Consumer Law, it doesn't matter who or what wrote the listing. If the ad is published by you or your agency, you're responsible for what it says. "The AI added that" isn't a defence.

Not legal adviceThis is a practical checklist, not a legal opinion. Your state's fair trading office, your licensing body and your principal's compliance policy have the final word.

What the law says, briefly

  • Misleading or deceptive conduct. Section 18 of the Australian Consumer Law prohibits conduct in trade or commerce that is misleading or deceptive, or likely to be. An ad can breach it even if nobody meant to mislead.
  • False representations about land. Section 30 specifically covers false or misleading representations in connection with selling land, including its location, characteristics, use and the facilities nearby.
  • State rules sit on top. Agent licensing laws, codes of conduct and, in some states, underquoting rules all apply to what goes in an ad.

Where AI listings go wrong

  1. Invented features. Give a model "3 bed, 2 bath, deck" and it may add a pool, ducted air or stone benchtops because that's what similar listings say. This is the most common problem.
  2. Stretched distances. "A short stroll to the station" when it's a 20-minute walk. Check every distance and travel time yourself, and prefer specific facts ("1.2 km to Wilston station").
  3. School catchment claims. Catchments change, and AI may be working from old information. Verify on your state education department's site at the time of listing.
  4. Views, aspect and light. "North-facing" and "glimpses of the city" must be true from the property, not from the AI's idea of the suburb.
  5. Condition words. "Fully renovated" when it's a new kitchen only. "Low-maintenance" next to a large pool and garden.
  6. Zoning and development potential. "Subdivide (STCA)" or "dual living potential" needs checking with council planning information, not a guess.
  7. Edited photos. If you use AI to stage rooms or edit images, disclose it clearly, and don't remove permanent features such as power poles, neighbouring buildings or damage.
  8. Price commentary. Don't let AI write price guides or "priced to sell" lines. Price advertising is regulated, and in some states, strictly.

The fact-check prompt

Run this on every AI-written listing before it goes live. It doesn't rewrite anything. It lists every factual claim so you can tick them off against your notes in about a minute.

Below is a property listing and my verified notes about the property.

List every factual claim in the listing in a table with three columns:
Claim | Supported by my notes? (Yes / No / Partly) | What to check

Include features, sizes, number of rooms, condition, distances and travel times, views and aspect, school zones, zoning or development claims, and anything about price.

Don't rewrite the listing. After the table, list anything I should verify before publishing.

Listing:
[paste listing]

My notes:
[paste your inspection notes or feature list]
Replace the [brackets] with your details

Then write the listing the safe way from the start: the listing description guide uses a prompt that tells the AI to use only your facts and bans the usual clichés.

🏡 Get the full Real Estate AI Prompt Pack 30 prompts for listings, open home follow-ups, vendor updates, appraisals, prospecting and admin. Instant PDF download.
Buy for $19 AUD

Common questions

Am I responsible if AI wrote a misleading property listing?

Yes. The Australian Consumer Law looks at what the ad says and who published it, not how it was written. Agents and agencies are responsible for every claim in their listings, so check AI copy against your own notes before it goes live.

Can real estate agents use virtual staging or AI-edited photos?

Many agencies do, but it needs to be clearly disclosed, and edits shouldn't misrepresent the property. Removing permanent features such as power lines, neighbouring buildings or damage could mislead buyers. Check your state's rules and your agency's policy.

Which section of the Australian Consumer Law covers property ads?

Section 18 prohibits misleading or deceptive conduct in general, and section 30 deals specifically with false or misleading representations about the sale of land, including its characteristics, location, use and nearby facilities.

More for real estate agents