191 thoughts on “Property Misrepresentation Claims in Practice”
Hello there!
In August 2021, my spouse and I purchased a property based on the information provided by the previous owners through the property information form. It was indicated in this form that no underpinning of the property had taken place. Regrettably, as this was our first property purchase, we did not seek a home report, which in hindsight was a lapse in judgment and had very poor solicitors 🙁
Subsequently, we have learned that the property had, in fact, undergone underpinning prior to our purchase, and it appears that the sellers were aware of this, as they possessed information pertaining to it. This information was not disclosed to us during the transaction.
Given the circumstances, we are seeking your guidance to understand the implications of this nondisclosure and explore potential legal remedies or actions we may take to address this issue?
The basic position is that if, as a matter of fact, the seller told you something which was incorrect (and because of the terms of the contract, this would normally have to be in writing but would include the property information form) there is probably a basis of claim in misrepresentation.
You say that the seller ‘indicated’ that the property had not been underpinned. It isn’t clear from what you say whether or not a definite ‘yes’ or ‘no’ answer was given to a specific question regarding underpinning. Broadly, the clearer the question and the clearer the answer, the easier it is to argue that it was factually inaccurate and therefore misleading, which is the fundamental point in any misrepresentation claim. If a buyer has made assumptions or otherwise not relied on what the seller has said (for example, you cannot rely on silence) there would not be a claim.
Underpinning can be serious business and normally the owner would need to obtain building regulation sign off once the work is completed. Whether or not this particular issue should have been spotted by your solicitor is questionable but something we would be able to check for you.
In terms of the implications, that is a very broad question. We suspect that you probably would have a reasonable basis of claim but we would need to consider the position in detail, which is why we cannot give specific advice on our website. Whether or not you wished to pursue a claim would fundamentally be your choice. If your query is aimed more at understanding what you might achieve from pursuing a claim, this would almost certainly be damages, aimed at compensating you for the loss that you have suffered. That loss is likely to be based on diminution in value. This is the difference between what the property was worth at the time with and without the defect complained of. This isn’t always the same as the cost of any residual works.
If you would like to explore the matter in more detail, please do get in touch.
Hi, this is about the CPSE form. We’ve bought a property to refurbish from a community centre. When filling out the CPSE they mentioned that they had had no problems or issues with fire risk assessment report We’ve since exchanged and discovered that not only do they not have a fire risk assessment report, there is a massive fire risk with next door’s flats placing their commercial rubbish bins against our wall next to a protected fire exit route Do you believe they have misrepresented?
We can only provide general guidance on our website, and cannot provide legal advice on specific circumstances. Whether or not there is a claim for misrepresentation will depend on the precise words used. Certainly suggesting that there were “no problems” with a particular report implies that such a report existed. If that was not factually the case, there could be a claim for misrepresentation.
However, suggesting that a report exists is arguably not the same as saying that it is a favourable report nor that it was valid. Whether or not it is reasonable to have relied on such a representation is therefore questionable.
It might be more beneficial to consider the advice that your solicitor or surveyor gave to you. If it can be said that a reasonably competent surveyor or solicitor would have advised you to obtain a copy of any report prior to exchange and completion, there may be a basis of claim in negligence against them.
Hi. As a buyer of a redevelopment property in 2016 our Solicitors asked the sellers legal rep to confirm the property was not in breach of covenant clause to which the reply was “Our client so confirms”. Now 7 years later and new neighbours have stated that our home is in breach via legal letter and threatening legal action! Do we have a misrepresentation claim if it’s found it actually is in breach? Feel like we are stuck in the middle here, and its not our fault
Leaving aside questions of whether or not you have any deadline to pursue a claim, whether or not there is a claim in misrepresentation will depend on a number of factors.
It sounds to us that the enquiry made by your solicitor of the seller was a fairly standard one and a sensible one at that. It also appears that the answer given was very definite, namely that “No” the seller was not in breach of any restrictive covenants. Ordinarily a statement of the legal position of something is not actionable, however, there is some case law which could be relied on in these circumstances, that effectively a statement of the legal position is a matter of fact i.e., that there are no breaches.
A more complicated matter is likely to turn on whether or not you are out of time to bring a claim. A misrepresentation claim would normally have a limitation period of 6 years from the date of completion. You may therefore find that you are out of time to pursue a claim against the seller. This position can change if there was a deliberate concealment or fraud, but that is a difficult thing to prove.
It is also worthwhile considering whether or not the restrictive covenant is enforceable. You have not explained what this is, but this is always a point worth checking.
If you would like to consider instructing us to look into the matter in a bit more detail, please do feel free to get in touch.
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Hello there!
In August 2021, my spouse and I purchased a property based on the information provided by the previous owners through the property information form. It was indicated in this form that no underpinning of the property had taken place. Regrettably, as this was our first property purchase, we did not seek a home report, which in hindsight was a lapse in judgment and had very poor solicitors 🙁
Subsequently, we have learned that the property had, in fact, undergone underpinning prior to our purchase, and it appears that the sellers were aware of this, as they possessed information pertaining to it. This information was not disclosed to us during the transaction.
Given the circumstances, we are seeking your guidance to understand the implications of this nondisclosure and explore potential legal remedies or actions we may take to address this issue?
Thank you for your comment.
The basic position is that if, as a matter of fact, the seller told you something which was incorrect (and because of the terms of the contract, this would normally have to be in writing but would include the property information form) there is probably a basis of claim in misrepresentation.
You say that the seller ‘indicated’ that the property had not been underpinned. It isn’t clear from what you say whether or not a definite ‘yes’ or ‘no’ answer was given to a specific question regarding underpinning. Broadly, the clearer the question and the clearer the answer, the easier it is to argue that it was factually inaccurate and therefore misleading, which is the fundamental point in any misrepresentation claim. If a buyer has made assumptions or otherwise not relied on what the seller has said (for example, you cannot rely on silence) there would not be a claim.
Underpinning can be serious business and normally the owner would need to obtain building regulation sign off once the work is completed. Whether or not this particular issue should have been spotted by your solicitor is questionable but something we would be able to check for you.
In terms of the implications, that is a very broad question. We suspect that you probably would have a reasonable basis of claim but we would need to consider the position in detail, which is why we cannot give specific advice on our website. Whether or not you wished to pursue a claim would fundamentally be your choice. If your query is aimed more at understanding what you might achieve from pursuing a claim, this would almost certainly be damages, aimed at compensating you for the loss that you have suffered. That loss is likely to be based on diminution in value. This is the difference between what the property was worth at the time with and without the defect complained of. This isn’t always the same as the cost of any residual works.
If you would like to explore the matter in more detail, please do get in touch.
Hi, this is about the CPSE form.
We’ve bought a property to refurbish from a community centre. When filling out the CPSE they mentioned that they had had no problems or issues with fire risk assessment report
We’ve since exchanged and discovered that not only do they not have a fire risk assessment report, there is a massive fire risk with next door’s flats placing their commercial rubbish bins against our wall next to a protected fire exit route
Do you believe they have misrepresented?
Thank you for your comment.
We can only provide general guidance on our website, and cannot provide legal advice on specific circumstances. Whether or not there is a claim for misrepresentation will depend on the precise words used. Certainly suggesting that there were “no problems” with a particular report implies that such a report existed. If that was not factually the case, there could be a claim for misrepresentation.
However, suggesting that a report exists is arguably not the same as saying that it is a favourable report nor that it was valid. Whether or not it is reasonable to have relied on such a representation is therefore questionable.
It might be more beneficial to consider the advice that your solicitor or surveyor gave to you. If it can be said that a reasonably competent surveyor or solicitor would have advised you to obtain a copy of any report prior to exchange and completion, there may be a basis of claim in negligence against them.
Hi. As a buyer of a redevelopment property in 2016 our Solicitors asked the sellers legal rep to confirm the property was not in breach of covenant clause to which the reply was “Our client so confirms”.
Now 7 years later and new neighbours have stated that our home is in breach via legal letter and threatening legal action!
Do we have a misrepresentation claim if it’s found it actually is in breach?
Feel like we are stuck in the middle here, and its not our fault
Thank you for your comment.
Leaving aside questions of whether or not you have any deadline to pursue a claim, whether or not there is a claim in misrepresentation will depend on a number of factors.
It sounds to us that the enquiry made by your solicitor of the seller was a fairly standard one and a sensible one at that. It also appears that the answer given was very definite, namely that “No” the seller was not in breach of any restrictive covenants. Ordinarily a statement of the legal position of something is not actionable, however, there is some case law which could be relied on in these circumstances, that effectively a statement of the legal position is a matter of fact i.e., that there are no breaches.
A more complicated matter is likely to turn on whether or not you are out of time to bring a claim. A misrepresentation claim would normally have a limitation period of 6 years from the date of completion. You may therefore find that you are out of time to pursue a claim against the seller. This position can change if there was a deliberate concealment or fraud, but that is a difficult thing to prove.
It is also worthwhile considering whether or not the restrictive covenant is enforceable. You have not explained what this is, but this is always a point worth checking.
If you would like to consider instructing us to look into the matter in a bit more detail, please do feel free to get in touch.