191 thoughts on “Property Misrepresentation Claims in Practice”
I have bought an off plan flat and exchanged in a few years ago. Only after the completing, found out that floor size of the flat has now been reduced around 10% against the contractual Floor Plan. The Seller keeps silent on the actual floor size and NOT provide me with any latest version of Floor Plan for registration. Pls point me with the right direction on how to deal with this matter.
Your starting point will always be the terms of the contract. It is not unusual for developers to have the right to make alterations to a property, provided that this does not have a material impact on its value. This is to enable the developer to make changes that it needs to for any reason to proceed with the build to completion. There might be a lack of materials. There may have been a need to make changes to the build to comply with certain requirements.
On the assumption that the developer contractually agreed with you that you would have a flat of a certain size but has not provided this, there would be a claim for breach of contract (unless the contract says something different). Your loss would likely be assessed by reference to diminution in value. This is the difference between what the property was worth in the size agreed (normally what a seller pays, but not always) and what a seller would have paid for the actual size.
I purchased a property from a major developer where the total development includes commercial space designated for specific use. The planning consent includes a condition to market the commercial space for its allocated use before a certain percentage of homes are occupied. The developer’s solicitor provided an information sheet at the time of purchase in which they stated that they would meet this condition. Subsequently the developer applied to have the condition removed and, when this was unsuccessful, they ignored it and have now received a notice of enforcement from the borough council. All purchasers made their buying decisions based on the originally approved plans and the developer did not inform people that they would not meet the condition as they had previously said they would. The developer has entered into a contract to sell the land to a large company for a different purpose to that allocated in the planning consent, and the newly proposed development is going through its own planning application which has already taken a year with no decision imminent. The newly proposed development will adversely impact our properties and owners who are currently marketing their properties have been unable to sell. Residents have asked the developer to withdraw from the sale and they have refused. While I understand that you would need more details, I wondered if it was possible that the purchasers would have a case against the developer for not meeting the commitment set out in the information sheet, receiving an enforcement notice, and failing to notify us when that situation arose?
We are sorry to say it probably is a little bit too specific for us to provide a response on our website.
However, in terms of general guidance, the basic position is that, subject to the terms agreed, if the seller has represented as a matter of fact that they would or would not do something and you relied on this representation when entering into the contract, if it has caused you some loss or damage, there may be a claim.
Much would probably turn on the extent to which it could be said that the subsequent decision made by the developer was something that could be reasonably implied by an objective buyer to be something that they would not do. This might be difficult to prove.
We purchased an auction in Scotland unseen in March 2023. The auction house emailed us that seller stated only 5 things need to be fixed to pass council inspection. We went thru the purchase process. After we got in the house, we found the house is a mess and lots of DIY errors. We contacted the council and obtained a list, it turned out was a long list, not only 5 items, and expired. We are now forced to come up with money to fix the house and to pass the council inspection. Can we get compensation from the seller? Thank you.
Supporting Farleigh Hospice | Limited Places Available We’re delighted to announce that Cunningtons is once again partnering with Farleigh Hospice for the annual Make a Will charity campaign this September! What We’re Offering ✅ Completely FREE Will preparation by our qualified solicitors;✅ Professional legal advice and guidance on making your Will; and of course,✅ Support […]
Planning for the future as we get older is a vital part of life – that’s why many of us provide for ourselves with pensions and Wills. However, one of the most important tools available to us is often neglected: Lasting Powers of Attorney. According to CanadaLife UK, 78% of UK adults don’t have a […]
Cunningtons help with "Your Legal Journey Through Life". We cover key areas: your first home, your relationships and family law, then growing families, employment matters, dispute resolutions, property investments, and planning your estate. We focus on continuity, trust, understanding clients, and personal service by offering the same legal team throughout life.
I have bought an off plan flat and exchanged in a few years ago. Only after the completing, found out that floor size of the flat has now been reduced around 10% against the contractual Floor Plan. The Seller keeps silent on the actual floor size and NOT provide me with any latest version of Floor Plan for registration. Pls point me with the right direction on how to deal with this matter.
Thank you for your comment.
Your starting point will always be the terms of the contract. It is not unusual for developers to have the right to make alterations to a property, provided that this does not have a material impact on its value. This is to enable the developer to make changes that it needs to for any reason to proceed with the build to completion. There might be a lack of materials. There may have been a need to make changes to the build to comply with certain requirements.
On the assumption that the developer contractually agreed with you that you would have a flat of a certain size but has not provided this, there would be a claim for breach of contract (unless the contract says something different). Your loss would likely be assessed by reference to diminution in value. This is the difference between what the property was worth in the size agreed (normally what a seller pays, but not always) and what a seller would have paid for the actual size.
Hello
I purchased a property from a major developer where the total development includes commercial space designated for specific use. The planning consent includes a condition to market the commercial space for its allocated use before a certain percentage of homes are occupied. The developer’s solicitor provided an information sheet at the time of purchase in which they stated that they would meet this condition.
Subsequently the developer applied to have the condition removed and, when this was unsuccessful, they ignored it and have now received a notice of enforcement from the borough council.
All purchasers made their buying decisions based on the originally approved plans and the developer did not inform people that they would not meet the condition as they had previously said they would.
The developer has entered into a contract to sell the land to a large company for a different purpose to that allocated in the planning consent, and the newly proposed development is going through its own planning application which has already taken a year with no decision imminent. The newly proposed development will adversely impact our properties and owners who are currently marketing their properties have been unable to sell. Residents have asked the developer to withdraw from the sale and they have refused.
While I understand that you would need more details, I wondered if it was possible that the purchasers would have a case against the developer for not meeting the commitment set out in the information sheet, receiving an enforcement notice, and failing to notify us when that situation arose?
Thank you for your comment.
We are sorry to say it probably is a little bit too specific for us to provide a response on our website.
However, in terms of general guidance, the basic position is that, subject to the terms agreed, if the seller has represented as a matter of fact that they would or would not do something and you relied on this representation when entering into the contract, if it has caused you some loss or damage, there may be a claim.
Much would probably turn on the extent to which it could be said that the subsequent decision made by the developer was something that could be reasonably implied by an objective buyer to be something that they would not do. This might be difficult to prove.
We purchased an auction in Scotland unseen in March 2023. The auction house emailed us that seller stated only 5 things need to be fixed to pass council inspection. We went thru the purchase process. After we got in the house, we found the house is a mess and lots of DIY errors. We contacted the council and obtained a list, it turned out was a long list, not only 5 items, and expired. We are now forced to come up with money to fix the house and to pass the council inspection. Can we get compensation from the seller? Thank you.
Thank you for your comment.
Scottish law is different to the law of England and Wales. Whilst there are probably comparisons, we cannot offer even general advice on Scottish law.