Login
AI tools give buyers false confidence while overlooking red flags
Buyers leveraging AI tools to interpret contracts may overlook key details, leading them to act on incorrect or potentially dangerous advice.
Buyers across the nation have been warned that putting their property contracts through generic AI tools to check the details, and putting blind faith in the output, could leave them exposed further down the track.
BuySecure co-founder Richard Bootle said the practice could be dangerous, exposing buyers to significant risk by failing to identify critical legal issues that could carry financial consequences.
He said that while AI tools could be advantageous when used more broadly, they lacked an understanding of Australian property law and often failed to recognise state-specific requirements.
“People are using ChatGPT to review the most important legal document they’re likely to ever sign,” Bootle said.
“Buyers are getting summaries that look helpful but often miss the details that matter.”
Bootle said using AI to review a contract created a false sense of security among buyers who felt they had done their due diligence, when in reality they had not.
To better protect themselves throughout the purchase, Bootle said buyers were better off using specialised contract review platforms and seeking professional advice.
“Generic AI can’t detect missing disclosures, unusual settlement terms, or one-sided special conditions because it is simply not built for that,” he said.
“A clause that looks harmless in an AI summary might carry major financial consequences under Queensland or NSW legislation.”
He said that while AI has become a more prominent part of society, the danger lies in using the tool for the wrong purpose, rather than in the tools themselves.
“Buyers deserve tools built for Australian law, contracts, and consumer protection, and not global chatbots that treat every contract as interchangeable.”
Bottle said that buyers should remember that while AI could serve as a sounding board to help them feel more confident about their purchase, it was not a substitute for legitimate advice.
“At the end of the day, it is important to understand that digital contract reviews can provide buyers with an affordable contract review at any time, but they should never replace professional legal advice.”
“Buying property is one of the biggest financial decisions anyone usually makes, so it stands to reason that you should always protect your purchase with professional advice from an actual human being during the transaction.”
Want to see more stories from trusted news sources?
Make Smart Property Investment a preferred news source on Google.
Click here to add Smart Property Investment as a preferred news source.