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?”

  1. Hello

    I am looking at purchasing a property and the online plans on Rightmove don’t match the house.
    There is an additional door here now and the flow plans show it’s a solid wall.
    What should we ask for this ensure this isn’t misinterpreted

    Thanks

    1. Thank you for your comment.

      As a buyer, it will be your responsibility to make sure that you are happy with the property you are purchasing.

      If there is any aspect of the property that requires clarification, you should ask the seller, ask your surveyor or both.

      Anything you are unsure about should be clarified before exchange of contracts and if a particular aspect of the transaction or property is particularly important to you, you should ask you solicitor to address the point by an inclusion of a relevant contractual term.

  2. Hi. We built an 18 month old property in November 2020 and shortly after we moved in it became apparent that there are serious issues with the drainage. After several companies were called out to unblock the drains we were advised that the pipes that run under the kitchen floor have not been installed properly and they have sunk leaving approx 2.5 metres of drain under our kitchen under water causing constant blockages. The sellers ticked that they weren’t aware of any issues with the drainage on the property information form. We have since found out from neighbours that they were very aware of this as the issue was something several of the houses down the street suffered with and there were also issues with the drains on the front that had to be dug up at one point. The builder has now conveniently gone into administration (however is setting up again under a different name) and so we are claiming for this to be resolved through LABC. Are we able to sue the sellers for not being honest with us? We would not be able to sell this property now if we wanted to and we are likely to have a lot of disruption and battles to get work completed coming in the future. Thank you

    1. Thank you for your comment.

      We are sorry to hear of these difficulties.

      In short, if a seller expressly represents a fact which can be proved was untrue, and that you relied on what was said when entering into the agreement to purchase the property then there may be a claim for misrepresentation.

      Your loss is likely going to be assessed by reference to the difference in value of the property at the time of purchase with and without the defect complained of.

      We believe that you mean you purchased an 18 month old property. If this was direct from the developer and it can reasonably be said that the property is uninhabitable, then there could be a claim under the Defective Premises Act 1972.

      You suggest that you may be trying to pursue matters against LABC. This is probably sensible to consider doing but it would not necessary mean you do not have a claim against the sellers either.

  3. Great article, thank you. I bought a house 3 years ago in West London. The night I moved in with my family we were disturbed by what is clearly the Underground running under the property. We hadn’t really noticed in it during our viewings but it’s as clear as day when you’re here. We contacted TFL about it and they advised that the previous owners had complained before, and that TFL had visited the property and recorded the sound levels as being above the accepted threshold.

    On the TA6 form the seller stated that they knew of no Complaints or Issues, or Notices and Proposals in relation to the property. However, through TFL, we know this to be untrue.

    The noise is not that bad – you get used to it. But I wonder what position we are in if/when we decide to sell? Do we need to disclose the sound on a TA6? And if so should we be considering a claim against the seller?

    Many thanks.

    1. Thank you for your comment.

      There is no obligation on a seller to volunteer information or even respond to enquiries. However, by not doing so the buyer may become suspicious or unwilling to commit to a purchase.

      If information is to be supplied, either voluntarily or in response to questions, the seller should be careful not to mislead.

      As for a claim against your own seller, the basic position is that if the seller said something, as a matter of fact, which was untrue and you relied on it when entering into the agreement to purchase the property, there would be the potential for a claim. As to whether it would be financially viable would depend on the value of the claim.

      The damages awarded in most misrepresentation claims would be based on diminution in value. This is the difference between what the property was worth and what someone at the time would have paid for it knowing about the issue in question. This is something that input from a surveyor would be required on.

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