When you move into a new property, you don’t want unpleasant surprises.
Unfortunately, you will sometimes find unexpected problems that the seller should have disclosed.
So, in this situation, what can you do about it?
What are the obligations of the seller?
Answering honestly
The onus is on the buyer to fully investigate a property.
However, during conveyancing the seller will be asked questions about the state of their property.
They must answer honestly.
If they don’t they can be sued for compensation under The Misrepresentations Act.
Property information forms
The property information form that a seller will fill out, covers a wide range of issues.
Again, seller’s responses must be full and truthful. They can refuse to answer a question but that should make buyers reconsider the purchase.
The duty to be truthful extends beyond this form. It applies to all communications with the seller whether they’re in person or through a solicitor or estate agent.
Equally, sellers should not hide or cover potential problems with a property that might prevent a buyer or surveyor discovering them.
What issues should sellers disclose?
Ultimately, sellers should disclose any issues that could impact property value, such as:
- Disputes with neighbours
- Planned development in the area that could affect a property
- Damp or dry rot
- Structural defects
- The presence of Japanese Knotweed (or similar plants)
- Works that do not have planning permission.
And more.
Can a buyer commission a survey?
In addition to a thorough conveyancing process, many buyers also commission a survey.
This involves a qualified chartered surveyor inspecting a property for defects and potential problems.
Different levels of surveys
Buyers can choose how comprehensive the survey is.
Some surveys give an overview of the condition of a home, others take a detailed look at the structure.
What happens if I discover an undisclosed problem?
When you buy a home you are likely to discover lots of small snags that you’ll want to fix – a dripping tap, a sticky window and so on.
If you are in a new build home the developer should return to resolve this kind of issue (this is what a snagging list is for). Otherwise, these aren’t the kind of problems you would go back to a buyer for.
Can buyers seek compensation from the seller?
Buyers can take action you can take action in most scenarios, including whether the misrepresentation was:
- Fraudulent (the seller lied on purpose)
- Negligent (they didn’t take enough care to provide the right information)
- Innocent (they believed they were telling the truth).
Buyer you will have to show:
- The misrepresentation is a fact and not your opinion.
- The information influenced your decision to buy the home.
- The information was false at the time contracts were signed.
- You have suffered loss because of it.
If a defect emerges between exchange of contracts and completion the buyer can refuse to go through with the sale, request a reduction in the price of the house or ask for damages to be paid.
Issues after completion
Often it takes living in a home to find out a problem such as a difficult neighbour or that planning permission hasn’t been granted for an extension.
Initially you should talk through the problem with a property solicitor to establish whether you have a case. You usually have six years from buying a home to start proceedings.
If the dispute is settled in your favour you will be awarded damages.
This may equal the difference between the value of the home when you bought it and the true value once the defect has been taken into account. Depending on the issue this can run into thousands of pounds.
It’s also possible to rescind the contract altogether, particularly in fraudulent cases, which would mean the seller buys their home back for the amount you paid.
However this has a wider impact, especially if your purchase was part of a chain, that often makes it too complicated to carry out.
Selling your property with peace of mind
If you’re selling a home and are unsure of some information relating to it, you can protect yourself with an indemnity policy which your conveyancer can help you buy.
Sell your house fast
When we buy your house, we’ll make sure the process goes as smoothly as possible. Not only will we deal with valuing your property, we’ll instruct and pay for independent solicitors.
As one of the best house buying companies, we’ll also work to complete a sell house fast plan where your property can be sold in just 7 days if you need, which means you’ll have swift access to the money you make from the sale.
