You Can Now Be Sued for ‘Serious Invasions of Privacy’ in Real Estate
O*NO! You Could Now Be Sued for a Serious Invasion of Privacy
Let’s paint a picture: You’re doing a routine inspection, your property manager lets themselves into a rental, and a tenant is still home, startled, upset, and feeling completely violated. Until now, this might have been a matter for the Commissioner or even a complaint to your agency. But as of 10 June 2025, the game has officially changed.
A brand-new law has landed in Australia, introducing a statutory tort (a legal wrong that someone can sue you for) called Serious Invasion of Privacy. And yes, real estate agents and agencies, this applies to you. It's no longer just about ticking off privacy policies and hoping for the best - people can now sue you directly for serious privacy breaches.
So, what does this mean in plain English? Let’s break it down.
What Is a Tort and Why Should Real Estate Agents Care?
In law-speak, a "tort" is a civil wrong that someone can sue you for in court, like negligence, trespass, or defamation. The new tort of Serious Invasion of Privacy is now officially part of that group. That means if you, or someone in your agency, seriously breaches a person’s privacy, they can take you to court - and ask for damages (aka $$$).
Before this change, if someone thought their privacy had been breached, they'd usually have to complain to the Privacy Commissioner. The Commissioner might investigate... or they might not. Now? The person can go straight to court. No detours.
And the timing couldn’t be clearer: This new right to sue kicks off on 10 June 2025.
What Counts as a “Serious Invasion of Privacy”?
Not every awkward moment counts as a lawsuit - but these do:
Intrusion Upon Seclusion
This is legal-speak for physically invading someone’s private space. Think:
Walking into a bedroom during an ‘unscheduled’ inspection.
Watching or listening in on someone in their home.
Recording or photographing private activities without consent.
Misuse of Private Information
This covers unauthorised use or sharing of personal info, like:
Telling others about a tenant’s financial situation.
Sharing someone’s medical or family details.
Leaking personal data - whether accidentally or intentionally.
In other words, if it’s not yours to share, don’t share it.
It Has to Be Serious, But Who Decides What That Means?
To sue successfully, three boxes need to be ticked:
Reasonable Expectation of Privacy:
Would most people expect privacy in that situation? For example, in a bedroom? Definitely. Also consider the person’s age, background, or religion. What might be an inconvenience to one person could be deeply distressing to another.
Intentional or Reckless Conduct:
This doesn’t mean it has to be malicious - but if someone in your team acted intentionally or carelessly, that’s enough.
Seriousness of the Invasion:
It’s got to be more than just annoying. The court will look at:
How bad the breach was.
The harm or distress it caused.
Whether your agency should have known it would cause distress.
That Time a Real Estate Agent Walked into a Bedroom...
Let’s look at a real case (and imagine how much worse it would’ve been under the new law):
In the ACT, a property manager let themselves into a rental during an inspection. The tenant was in bed. She wasn’t wearing her hijab and had her infant child with her. She was terrified and hid under the covers. The agent claimed they knocked and called out, but the tenants disputed it.
The tribunal found it was trespass. Any so-called “consent” to proceed with the inspection was made under duress. Damages were awarded.
Now imagine this happened after 10 June 2025. The tenant could not only go to the tribunal - they could sue the agency directly under the new tort. And based on the facts, in our view, they’d probably win.
What Real Estate Agencies Need to Do (Like, Yesterday)
This new tort is not just a legal technicality. It’s a massive wake-up call for every agency, big or small.
Review your inspection procedures.
Are you giving tenants clear and proper notice? Are your team members trained to enter respectfully and check if someone is home?
Educate your team.
Make sure they know about cultural and religious sensitivities, especially in private spaces like bedrooms or bathrooms.
Update your privacy policies.
They need to be compliant, current, and followed every time.
Get legal advice.
Especially around how your agency handles inspections, tenant communications, and data privacy.
Key Takeaways
As of 10 June 2025, individuals can sue your agency directly for serious invasions of privacy - a brand new cause of action in Australia.
There are two main types of breaches: intruding into private spaces and misusing personal information.
For a claim to succeed, it must involve a reasonable expectation of privacy, intentional or reckless conduct, and be serious in nature.
Even routine inspections could land you in hot water if not handled with care.
Now’s the time to review and tighten your privacy processes—and train your team.
Next Steps
Don’t wait until you’re facing a lawsuit to take action. If you’re unsure whether your current practices could expose you to legal risk under the new law, let’s chat.
We’ll help you understand your legal obligations and tighten up your processes, so you stay on the right side of the law and your tenants.
Boring legal stuff: This article is general information only and cannot be regarded as legal, financial or accounting advice as it does not take into account your personal circumstances. For tailored advice, please contact us. PS - congratulations if you have read this far, you must love legal disclaimers or are a sucker for punishment.