When Work Health and Safety Fails: The Hidden Dangers Lurking at Open Houses

The Open House Nightmare The Story of Emily - Real Estate Agent

For Emily*, the incident became a lesson etched in fear. WHS compliance wasn’t just a checklist. It wasn’t just another box to tick. It was the difference between a smooth sale and a lawsuit that could destroy a business.

Because in real estate, it isn’t just about selling houses.

It’s about keeping people safe.

And when that fails...

The consequences are terrifying.


Here are the FACTS…

Liability Under NSW WHS Laws

Under the Work Health and Safety Act 2011 (NSW), liability can fall on multiple parties, including:

1. The Real Estate Agency (as a PCBU - Person Conducting a Business or Undertaking): The agency has a duty to ensure the health and safety of workers and others affected by their business activities.

2. The Property Owner (Vendor): While the agency is responsible for hosting the open house, the vendor may have a duty to maintain the property in a safe condition.

3. The Listing Agent (as a Worker): If the agent was aware of the hazard and failed to address it, they could be liable.

4. The Real Estate Agency Directors: If the directors knew of the hazard and failed to take action, they could face penalties.

If it can be shown that negligence contributed to the incident, a civil claim for damages could be made under common law.

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Duty of Care

• General Duty: Under Section 19 of the WHS Act, a PCBU must ensure, as far as is reasonably practicable, that the workplace (in this case, the open house event) is safe for workers and visitors.

• Vendor’s Responsibility: While the vendor owns the property, once the real estate agency takes control of it for an open house, the agency has primary WHS obligations.

• Real Estate Agent’s Responsibility: The agent running the open house should have checked for hazards and taken corrective action before allowing visitors to enter.

The Ongoing Incurred Damages

• Financial Damages

  • Compensation payout for medical expenses and lost income (if found liable)

  • Legal fees to defend against a claim

  • Increased insurance premiums

  • Potential fines from SafeWork NSW if found negligent

• Reputational Damage

  • Negative publicity affecting the agency's credibility

  • Loss of future listings from cautious vendors

  • Damage to the agent’s personal reputation and career prospects

• Operational Impact

  • The listing may be postponed or withdrawn, resulting in lost commission

  • Stricter WHS compliance processes for future open houses

  • Possible suspension or penalties for the agency or agent

• Vendor’s Damages

  • Delayed or lost sale

  • Potential legal liability if proven they failed to maintain the property

This case highlights why real estate agencies must implement strict WHS protocols for open houses, including pre-inspection safety checks, clear hazard warnings, and proper documentation. A failure to do so can result in severe financial, legal, and reputational consequences.