Potential real estate buyers in Stawell and Ararat will now be more informed about the history of a property as agents must answer questions about all material facts.

The Material Fact Guidelines state a vendor or their agent must disclose all known material facts, as soon as a prospective buyer indicates they are considering purchasing the property.

Monaghan Real Estate director Terry Monaghan said as faults were known within a property, they were "always pointed out to prospective buyers".

"There's no point in trying to hide anything. Most buyers will turn around and have a building inspection done anyway or know the history of the house through living in the town," he said.

"We don't always know about building faults of properties but that's why we encourage inspections. Some faults might be obvious like cracks in the wall and floors sinking."

A property that was sold in 2019 is an example of disclosing all known faults to the buyer.

The Luke Street property was sold by Monaghan's under a "buyer beware" clause, due to part of the house's foundation sinking.

Purchaser Stephen Leek said he understood the house's faults before he negotiated the purchase.

"The estate agent was upfront and very honest with the issues of the house," he said.

"Since starting work on the house I've had so many people tell me about the mine shaft underneath it and where the shafts go in the area. People are really inquisitive about the property."

Mr Leek said there was an opening of a mine shaft which the back corner of the house was built on which he has now filled in with concrete and underpinned the property.

"It's been a big job working through making sure the foundation is stable again," he said.

"I've been in the under-pinning industry for a number of years so I was fully aware of what I was getting myself in for."

Mr Monaghan said he could confidently say real estate agents in Stawell were already following the new laws.

"None of the new guidelines change anything on what we do as agents or any agents in Stawell for that matter," he said. "There are obviously other people within the industry who work differently and generally are anonymous and in a big city."

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