191 thoughts on “Property Misrepresentation Claims in Practice”
Hi,
We purchased an old terraced property in December 2022. Prior to exchanging contracts we were told by the estate agent that a recent chimney stack leak had been repaired and that the kitchen flat roof failure would also be rectified before we moved in. Even went as far as to say that the house would be “100% ready to move into”. The day after we picked up the keys, it rained and it became clear that the chimney stack and flat roof were both still leaking. We’ve since had to fork out a considerable amount of money to make the place watertight again.
Had we known that these problems were not sorted then we wouldn’t have purchased the property! My solicitor has also told me that we don’t have a legal leg to stand on because these things weren’t in contract. However I genuinely feel that there’s misrepresentation at play here
It is correct that the contractual position between the parties is very important. Often with residential sales, the standard conditions of sales are incorporated into the contract. This does specifically say that the purchaser buys the property in the condition that it is in. Further, there will normally be a contractual clause excluding any kind of liability for misrepresentation unless it is in writing and between the seller or their respective legal advisers.
We suspect that you would have to prove that the agent acting on behalf of the seller was deliberately misleading you. In the case of fraudulent misrepresentation, the terms and conditions become “less important”. They are still extremely relevant to the position, however liability for fraud cannot be excluded from contracts generally.
Hello there, We bought a house in Scotland located within farm land. On the home report it said that the house was connected to mains electricity. The seller confirmed that it was, but that there wasn’t a meter in place. In the Disposition he agreed to pay for the expense to instal the meter. When we completed we discovered that he had lied to us, both in person and in the Home Report (which he had signed). The house is not connected to the mains, it’s connected to the farm. He installed a meter and said we have to pay him for our electricity at a tariff of his choosing. When we protested he said he would cut off our power if we didn’t pay what he asked. On top of this, within the Disposition he agreed to fix the boundary walls and fences within three months of our date of entry. It’s now been nine months since we moved in. Could we sue for fraudulent misrepresentation and breach of contract? Many thanks for your advice, Matheu
I recently purchased a property where the buyer put ‘no’ on the SPIF form about neighbour disputes.
However I have learnt from other neighbours that a couple of years ago the seller did contact the adjacent property’s landlords to complain about suspected criminal activity.
Our neighbours the other side said maybe the sellers overlooked it because it had been resolved for over 12 months before the sale.
I’m worried this issue could crop up in the future. What are my rights? Can I take them to court for lying, or is it too ambiguous?
Thank you for your comment. The Property Information Form does usually include a question as to whether there have been any events which could have given rise to a dispute with neighbours. In theory they should likely have, from what you have said, disclosed this on the property information form when asked. However, unless the dispute with the neighbour is ongoing or the behaviour of the neighbour that gave rise to that dispute is ongoing, it is unlikely there will be a claim as there will be no real loss or damage you have undergone or could point to as a result.
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Hi,
We purchased an old terraced property in December 2022. Prior to exchanging contracts we were told by the estate agent that a recent chimney stack leak had been repaired and that the kitchen flat roof failure would also be rectified before we moved in. Even went as far as to say that the house would be “100% ready to move into”. The day after we picked up the keys, it rained and it became clear that the chimney stack and flat roof were both still leaking. We’ve since had to fork out a considerable amount of money to make the place watertight again.
Had we known that these problems were not sorted then we wouldn’t have purchased the property! My solicitor has also told me that we don’t have a legal leg to stand on because these things weren’t in contract. However I genuinely feel that there’s misrepresentation at play here
Thank you for your comment.
It is correct that the contractual position between the parties is very important. Often with residential sales, the standard conditions of sales are incorporated into the contract. This does specifically say that the purchaser buys the property in the condition that it is in. Further, there will normally be a contractual clause excluding any kind of liability for misrepresentation unless it is in writing and between the seller or their respective legal advisers.
We suspect that you would have to prove that the agent acting on behalf of the seller was deliberately misleading you. In the case of fraudulent misrepresentation, the terms and conditions become “less important”. They are still extremely relevant to the position, however liability for fraud cannot be excluded from contracts generally.
Hello there,
We bought a house in Scotland located within farm land. On the home report it said that the house was connected to mains electricity. The seller confirmed that it was, but that there wasn’t a meter in place. In the Disposition he agreed to pay for the expense to instal the meter. When we completed we discovered that he had lied to us, both in person and in the Home Report (which he had signed). The house is not connected to the mains, it’s connected to the farm. He installed a meter and said we have to pay him for our electricity at a tariff of his choosing. When we protested he said he would cut off our power if we didn’t pay what he asked. On top of this, within the Disposition he agreed to fix the boundary walls and fences within three months of our date of entry. It’s now been nine months since we moved in. Could we sue for fraudulent misrepresentation and breach of contract?
Many thanks for your advice,
Matheu
Thank you for your comment. We are unable to advise on Scottish law.
Hi
I recently purchased a property where the buyer put ‘no’ on the SPIF form about neighbour disputes.
However I have learnt from other neighbours that a couple of years ago the seller did contact the adjacent property’s landlords to complain about suspected criminal activity.
Our neighbours the other side said maybe the sellers overlooked it because it had been resolved for over 12 months before the sale.
I’m worried this issue could crop up in the future. What are my rights? Can I take them to court for lying, or is it too ambiguous?
Thank you for your comment. The Property Information Form does usually include a question as to whether there have been any events which could have given rise to a dispute with neighbours. In theory they should likely have, from what you have said, disclosed this on the property information form when asked. However, unless the dispute with the neighbour is ongoing or the behaviour of the neighbour that gave rise to that dispute is ongoing, it is unlikely there will be a claim as there will be no real loss or damage you have undergone or could point to as a result.