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

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

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

Isabelle Davies says:
July 12, 2021 at 9:03 am
I offered on a flat that the estate agent told me was being sold share of freehold. This affected our decision to offer on the flat rather than another property we had seen and increased our offer. Through the conveyancing process we discovered that the flat was not share of freehold after all. When we questioned the estate agent we were told that the freeholder had changed their mind about selling the freehold.
If we decide not to go through with the purchase is the estate agent liable for our fees as they told us the property was share of freehold and did not notify us of the change?
Reply
1. Mark Taylor says:
  July 13, 2021 at 10:22 am
  We would think it unlikely that there would be any basis of claim. The freeholder may very well have changed their mind as any seller would be entitled to do before exchange of contracts.
  If you do consider that the marketing or advertisement of the property was in some way misleading, you could consider making a complaint to any relevant redress scheme that the estate agent belongs to.
  Reply
Lucia says:
June 17, 2021 at 1:13 am
I’d like advice on stopcocks please. On 2nd viewing, after our offer had been accepted, we found a leak in the property which is a top floor flat. We looked for the stopcock in the flat to turn off the water but couldn’t find it. Seller had indicated stopcock (and water meter) were in the hall cupboard. We flagged the leak to the solicitor and said we could not find the stopcock. The water meter was actually outside, in the road. We got the reply that the leak had been fixed and the stopcock was in the cupboard. Date for completion has now been agreed. Our solicitor suggested we do a final check on the leak. This time the water had been turned off. Still no sign of the stopcock so we asked a neighbour who said there were no internal ones, only ones out under covers on the road. We can’t now check to see if any of the pipes are leaking as obviously don’t have access. Water co said it is strongly advisable for flats to have internal stopcocks, and that’s what we were expecting. It seems so minor but I don’t want to move in and find a ton of problems with leaky pipes. Seller just seems to be wasting our time over this. They also have the key to the garage which they said they would drop off to the agent. The agent doesn’t have it and the seller has now gone to an amber country. He doesn’t know when they’ll be back. Originally the seller didn’t even know the garage was part of the property – only when we got the deeds we could see it. We haven’t even been able to see in it as nobody has the key and with quarantine the seller won’t make it back before the completion date. Am now wondering if the cooker and washing machine will be working, let alone the heating, as the sellers seem so unreliable! The flat has been tenanted for a long time but even so…Is any of this misrepresentation?
Reply
1. Mark Taylor says:
  June 19, 2021 at 10:30 am
  Thank you for your comment. A misrepresentation occurs when someone says something that the other party relies on when entering into the contract and that statement is not accurate, causing a loss to the other party.
  You should discuss the position with your solicitor. In particular, if you are unsure of the contractual position, you might want to discuss the point that clause 3 of the standard conditions of sale (which are normally incorporated into the contract) state that the buyer accepts the property in the physical condition that it is in on exchange.
  Reply
lucy says:
June 15, 2021 at 2:34 pm
I purchased a house the beginning of the year, when we looked around the property we specifically asked the Estate agent if there were any issue with neighbours etc. we were told not at all its a lovely neighbourhood.
We then decided to proceed with the purchase, and on the forms the sellers stated that they did not have any issues with neighbouring properties.
However since moving in, this was obviously not the case and we have since learned that the sellers had issues with the neighbour and that was the reason that they wanted to move.
Since moving in we have had endless issues with the same neighbour relating to drugs, loud music and general anti social behaviour. We have two small children who as scared in there own homes so this is a real problem.
Do we have any grounds for claims against the sellers?
Reply
1. Mark Taylor says:
  June 20, 2021 at 10:28 am
  We are sorry to hear of this and sadly, it is not uncommon. There are examples of cases where sellers have been ordered to pay damages to buyers because they have suggested that there are no disputes with neighbours and this turns out to be untrue.
  Whether or not there is any sort of misrepresentation claim here will depend a great deal on the written correspondence and documentation, specifically the property information form. What you have been told orally is less likely to be relevant because the standard conditions of sale normally incorporated into a contract of sale exclude these as being actionable. An exception to this would be in cases of fraud.
  Please do feel free to get in touch if you would like to consider the matter in more detail with us.
  Reply

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

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

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

Leave a Reply Cancel reply