416 thoughts on “My Seller Lied To Me! When Is It Property Misrepresentation?”
Our vendor ticked the box for no disputes with neighbours. It turns out that there has been a long standing dispute about bamboo on the house boundary. He mentioned briefly that the neighbour didn’t like the bamboo, but played it down as a small quarrel because they didn’t get on with each other. It has now reached epic proportions as the neighbour refuses to manage it and she now has a small plantation. It would cost £9000 to get rid of. Who would be responsible for the cost ? Are we obliged to get rid of it? Thank you if you can reply.
Thank you for your comment. Misrepresentation claims relating to disputes with neighbours are something that seem to be occurring more often and we have had several enquiries of this nature. Whether there is a claim will turn on exactly what the seller said in the property information form. There is a question as to whether downplaying something can be a misrepresentation, as if it is mentioned to have occurred but only as a minor dispute, is that necessarily a false statement in that it is true that there was a dispute regarding the bamboo, but it was false inasmuch as its severity was mentioned. You would also need to show that you relied upon this statement and were entitled to rely upon it.
In terms of losses, you could recover the costs of removing the bamboo and the costs of and occasioned by a dispute with the neighbour from the seller in a misrepresentation claim but the latter only insofar as the neighbour does not pay those costs in the first instance, and the Courts will insist that you show that you have attempted to mitigate your losses by so doing.
I’ve recently completed on a rental property. I was told it was 3 bedrooms and all paperwork was in place. There was no issue during conveyancing and it all went through. The agent I use to manage the property has said he will not market as 3 bed as there is no door to the attic bedroom. He’s told me this is a requirement and that the estate agent selling the property has miss sold this.
I’m guessing the cost of fitting a door and making good will be less than the difference buying a 2 bed rather than 3.
You are right that it would almost certainly be cheaper to fit a door than to pursue a claim. However, it is unlikely that there would be any sort of misrepresentation claim in any event.
We are not immediately certain whether or not the “requirement” referred to, to have a door to a bedroom to describe it as such, is a personal requirement for the agent to agree to market the property or a legal one. If it is a legal requirement to have a door to a bedroom to describe it as a bedroom, then the representation made would be a statement of law, namely that the property is “legally” a three bedroomed property. A statement of law is not generally actionable.
In any event, we think you would be hard pressed to convince a Court that you relied on this description from an estate agent, as opposed to photographs or viewings of the property, when deciding to enter into the contract to purchase it. In every misrepresentation claim, the Claimant must prove that they relied on what they were told when entering into the contract.
What if the misrepresentation happened before the conveyancing forms were filled in? I was told a house was standard construction at the stage of making an offer. Mortgage got refused and my survey said nonstandard construction. They then showed me their survey from 2006 which said non proprietary materials, so proof that they knew. They claim that they didn’t know because they’ve never had any mortgage issues. They are also saying I should pursue the estate agents but they say they just pass on what they are told by the seller. The case is going to court on Monday, any tips or past cases I can refer to please?
Thank you for your comment. Without having seen the documentation in question we are not able to give you specific advice and given the short notice it is unlikely we would be able to assist you meaningfully in respect of this matter. However the general position is that a misrepresentation can be any false statement that is made that you relied upon and were entitled to rely upon and which induced you to enter into the contract. In theory if they mentioned this to you this may be such a statement but at the same time, the contract may well contain non reliance clauses which preclude you from relying upon that statement.
Since the matter has already gone to Court and with a hearing next Monday, you may wish to address this to any solicitors who are assisting you with this as they may be better placed to advise you and be better acquainted with the circumstances of the case in general.
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Our vendor ticked the box for no disputes with neighbours. It turns out that there has been a long standing dispute about bamboo on the house boundary. He mentioned briefly that the neighbour didn’t like the bamboo, but played it down as a small quarrel because they didn’t get on with each other. It has now reached epic proportions as the neighbour refuses to manage it and she now has a small plantation. It would cost £9000 to get rid of. Who would be responsible for the cost ? Are we obliged to get rid of it? Thank you if you can reply.
Thank you for your comment. Misrepresentation claims relating to disputes with neighbours are something that seem to be occurring more often and we have had several enquiries of this nature. Whether there is a claim will turn on exactly what the seller said in the property information form. There is a question as to whether downplaying something can be a misrepresentation, as if it is mentioned to have occurred but only as a minor dispute, is that necessarily a false statement in that it is true that there was a dispute regarding the bamboo, but it was false inasmuch as its severity was mentioned. You would also need to show that you relied upon this statement and were entitled to rely upon it.
In terms of losses, you could recover the costs of removing the bamboo and the costs of and occasioned by a dispute with the neighbour from the seller in a misrepresentation claim but the latter only insofar as the neighbour does not pay those costs in the first instance, and the Courts will insist that you show that you have attempted to mitigate your losses by so doing.
If you are seeking further advice on this point then please do not hesitate to contact the Litigation team at our Braintree office.
I’ve recently completed on a rental property. I was told it was 3 bedrooms and all paperwork was in place. There was no issue during conveyancing and it all went through. The agent I use to manage the property has said he will not market as 3 bed as there is no door to the attic bedroom. He’s told me this is a requirement and that the estate agent selling the property has miss sold this.
I’m guessing the cost of fitting a door and making good will be less than the difference buying a 2 bed rather than 3.
Thank you for your comment.
You are right that it would almost certainly be cheaper to fit a door than to pursue a claim. However, it is unlikely that there would be any sort of misrepresentation claim in any event.
We are not immediately certain whether or not the “requirement” referred to, to have a door to a bedroom to describe it as such, is a personal requirement for the agent to agree to market the property or a legal one. If it is a legal requirement to have a door to a bedroom to describe it as a bedroom, then the representation made would be a statement of law, namely that the property is “legally” a three bedroomed property. A statement of law is not generally actionable.
In any event, we think you would be hard pressed to convince a Court that you relied on this description from an estate agent, as opposed to photographs or viewings of the property, when deciding to enter into the contract to purchase it. In every misrepresentation claim, the Claimant must prove that they relied on what they were told when entering into the contract.
What if the misrepresentation happened before the conveyancing forms were filled in? I was told a house was standard construction at the stage of making an offer. Mortgage got refused and my survey said nonstandard construction. They then showed me their survey from 2006 which said non proprietary materials, so proof that they knew.
They claim that they didn’t know because they’ve never had any mortgage issues. They are also saying I should pursue the estate agents but they say they just pass on what they are told by the seller.
The case is going to court on Monday, any tips or past cases I can refer to please?
Thank you for your comment. Without having seen the documentation in question we are not able to give you specific advice and given the short notice it is unlikely we would be able to assist you meaningfully in respect of this matter. However the general position is that a misrepresentation can be any false statement that is made that you relied upon and were entitled to rely upon and which induced you to enter into the contract. In theory if they mentioned this to you this may be such a statement but at the same time, the contract may well contain non reliance clauses which preclude you from relying upon that statement.
Since the matter has already gone to Court and with a hearing next Monday, you may wish to address this to any solicitors who are assisting you with this as they may be better placed to advise you and be better acquainted with the circumstances of the case in general.