What is property misrepresentation and what are property misrepresentation claims?

There is no specific definition of this but broadly this could be described as a claim which arises by reason of a misrepresentation occurring during a property transaction.

Can I sue the seller if I bought a house with problems that were not disclosed?

Before you can issue a claim against the seller that you purchased your property from, you will need to identify a “cause of action”. A cause of action is a legal basis of a claim. This might be for breach of contract, depending on what was contractually agreed, or for misrepresentation, if the seller actively misled you about something. Also, it is important to understand that issuing a claim is expected to be an option of last resort. The Courts expect the parties to negotiate and follow sensible and sometimes prescribed pre-action conduct. If you feel that you might have a claim, you should always take legal advice before committing to litigation.

What compensation will I receive in a property misrepresentation claim?

Damages for all types of misrepresentation cases are intended to put the claimant in the position that they would have been in had the misrepresentation not been made. In property misrepresentation cases, this is normally the difference between what you paid for the property and what it would have been worth, had the truth been told. This is called diminution in value.

What should a seller disclose when selling their property?

The seller does not have to disclose anything but if they do not, then a buyer might decide not to take the risk of buying the property. Normally a seller will fill out a property information form. For residential purchases, the Law Society published a standard property information form for this purpose, called a TA6 or a TA7.

What if the seller lied on the property information form?

If a party to a contract deliberately misrepresented facts relating to the property with the intention of misleading the buyer, a fraudulent misrepresentation can arise. Often, such a representation does not need to be in writing.

Do I have to declare planning applications, like a neighbour’s extension?

There is case law on this and it will normally depend on whether or not you have received a formal planning notice. Have a look at our article u003ca href=u0022https://cunningtons.co.uk/property-misrepresentation-claims/u0022u003e Property Misrepresentation Claims in Practice for a case on this point.

Can a home buyer sue the seller?

If you have purchased a property from someone, and believe that they have not complied with the terms of the contract or have misled you about something when deciding whether or not to proceed, there may be a claim. It is, however, important to consider the basis of that claim before issuing it (i.e. suing the seller). Suing someone is considered by the Courts to be the option of last resort, and certain pre-action steps should be observed before committing to litigation. A solicitor will be able to consider the basis of your claim, the evidence in relation to it and advise you as to what you need to do.

My seller lied about flooding - what can I do?

In our experience, this is fairly common. In short, what can be done about this depends on the terms of the contract agreed with the seller and the extent to which the information that they provided to you was misleading and caused you to enter into the contract by reason of your reliance on it. If a seller has expressly stated “no”, the property has never flooded and it transpires that it has (and evidence of this would be important to locate), then there could be a claim against the seller.

Should my seller have disclosed an insurance claim?

A seller is not obliged to volunteer information about historical insurance claims to a buyer. However, much of the time, standard property information forms are used which ask the seller this question. There might be a claim for misrepresentation if an insurance claim was made historically by the seller has answered “no” to any question asked of them by the buyer which was aimed at understanding whether or not such insurance claims had been made. However, as most of the time, the measure of damages (this is the “compensation” that the Court would award) would be based on diminution in value, it is worth thinking carefully about whether or not it is financially worth a claim against your seller. For example, an insurance claim in relation to a fence that blew down in a storm is probably not going to have a major impact on the value of the property when compared to a claim for significant subsidence.

My seller didn't disclose plumbing issues.

A seller is not obliged to volunteer information about issues with the plumbing to a buyer. There are some questions in standard property information forms which ask about things such as whether or not the boiler is in working order and whether or not the property or surrounding area has ever flooded. If there is evidence that the plumbing issue in question existed during the period of the seller’s ownership, and the seller has actively mislead the buyer by suggesting that such an issue did not exist (which is not the same as staying silent on the point), then there could be a misrepresentation claim.

Do you have to disclose mice when selling your house?

A seller is not obliged to volunteer information about vermin or other pest issues with a property. The basic position is that it is for the buyer (normally via their surveyor), to satisfy themselves that they want to purchase a property. If something in particular is important to a buyer, they should ask about this. If a seller is asked about any issues, they should provide an honest answer, or they could face a misrepresentation claim later.

How long are you liable after selling a house?

It depends on the basis of claim. For example, in a breach of contract claim, the basic deadline to pursue a claim would be six years from the date of the breach of contract (so normally, six years from completion). If the claim is based on misrepresentation, then the deadline would normally be (taking a conservative approach) six years from the date the contract was entered intro in reliance on the misrepresentations (so normally six years from exchange of contracts). There might also be other considerations to take account of. For example, fraud and deliberate concealment can have the effect of extending any deadlines to bring a claim. The Limitation Act 1980 sets out a number of “deadlines” to pursue certain types of claims and sometimes entire disputes turn on whether or not it can be said that the limitation period has expired or not.

Can you be sued after selling a house?

It depends on who is asking. If the question is can a seller be sued by a buyer, the answer is “yes”, a buyer can sue a seller of a property. Depending on the type of claim, there will be time limits to consider, however. Sometimes a seller can even remain liable to neighbours for breaches of restrictive covenants and other requirements they haver agreed to observe, but this is a complicated issue and does not arise that often.

Property Misrepresentation Claims: When Sellers Tell Lies

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416 thoughts on “My Seller Lied To Me! When Is It Property Misrepresentation?”

Igin says:
November 11, 2020 at 10:05 pm
Hi,
We were in a process of buying a house. We had twice viewing the house. We were really interested then we put an offer, till this time the home agancy didn’t say anything to us this house sold once in March and it came back to market again because the buyer didn’t pay money. We put our offer and didn’t have any call back of them when we phoned to asked this time they said this house was sold and now the seller wanted to sell the house to that buyer again, we told them why they put the house in the market why you didn’t told us, they replied the seller wants to push them to buy the house and very silly reason. Actually I’m too frustrated I’m still thinking about that house their behaviour wasn’t fair with us. I would please if you tell me is there anything I can do? Now the house is STC in the market.
Thanks
Reply
1. Mark Taylor says:
  November 12, 2020 at 10:02 am
  Thank you for your comment.
  We do not believe that there is any sort of legal recourse available to you here. An offer, once made, does not have to be accepted or even considered by a buyer. There is no duty of care between a prospective buyer and seller and there is no contract in existence which give rise to any sort of rights or obligations.
  Reply
Sarah says:
November 7, 2020 at 3:50 pm
Hi,
We are in the process of buying a house and on the Property Information Sheet next to building work the seller has ticked ‘no’. However, our mortgage valuation has uncovered the house was underpinned (during the seller’s ownership even) and we requested paperwork which shows the whole house — every room in fact — had work carried out during the underpinning. We want to pull out and would not have instructed a survey to be done had the seller disclosed this information. Are we in a position to demand the seller pay our loss on the survey?
Thanks.
Reply
1. Mark Taylor says:
  November 9, 2020 at 9:40 am
  Thank you for your comment Sarah.
  If you have not yet proceeded to completion, then you may have the option of rescinding the contract. However, much will turn on when you discovered the issue. Presumably the mortgage valuation was undertaken prior to exchange of contracts. If the standard conditions of sale were incorporated into the contract, then a buyer would normally be accepting the property in the physical state it is in when exchange takes place, underpinning and all. The question will therefore arise as to what extent you should and could have relied on the representation, bearing in mind that contrary information appeared in the mortgage valuation.
  Having said this, most mortgage valuations will contain an express proviso that the buyer should not rely on its contents. It is undertaken merely so the lender knows that the security (the property) that they are lending against is worth at least what they are lending. This may provide you with some scope to argue that you were entitled to fully rely on the representations made by the seller.
  There is generally no legal basis to reclaim things such as solicitor and surveyor costs incurred prior to exchange of contracts. The primary purpose of instructing solicitors and surveyors is to safeguard your position and enable you to withdraw from the transaction before exchange of contracts if there is a legal or structural issue with the property. At this point, there is no contract between the buyer and seller. Put another way, these are costs that you would have incurred whether or not you proceeded to completion and therefore would not generally be something that can be claimed.
  Reply
Louise Smith says:
November 7, 2020 at 12:59 pm
We bought a house in 2017, since then we have learned that according to the deeds we own the majority of a shared car park and it states that we should allow the neighbours access and repass rights to their car parking bays which we do allow. However, the previous owner of the house is allowing her daughter to park on our land (which is registered in the Land Registryc, of which she states that her ex husband should’ve changed when selling the house. Obviously this wasn’t done and now the land is registered to our address), we have stated that she is not allowed to park there to which we get abuse and are continuously ignored. What’s rights do we have? Because she is ignoring the fact it is our land as well as implying that all documents are wrong.
Reply
1. Mark Taylor says:
  November 9, 2020 at 9:43 am
  Thank you for your comment.
  The basic position is that if someone has no right to enter onto your land, with or without a vehicle, then there is a trespass. The rights someone may have are normally contained in the deeds but sometimes these can arise through prescription (long usage) and in other circumstances.
  It is difficult to provide even preliminary guidance what rights you or the daughter may have without investigating the position in full, but if there is a case of trespass and possibly nuisance, then it is possible to apply to the Court for an injunction and/or declaration as to the rights. A declaration is a Court order which states what rights the parties have.
  We cannot really add anything in relation to the allegation that the seller should have taken steps to amend the title deeds without considering the conveyancing file in full.
  If you are subject to intimidating and abusive behaviour, then this is possibly something that the police should be notified of.
  Reply

My Seller Lied To Me! When Is It Property Misrepresentation?

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