Disclosure of information in property transactions

Purchasing a property is by far the biggest financial commitment most of us will ever make. The importance of having access to the fullest information possible before you commit is therefore of paramount importance.

But how can you be sure you have been told everything you need to know in order to make an informed decision, and what can you do if you later discover something that has a significant negative effect on the value or desirability of your new home?

Do your due diligence

Basic fact-finding steps to take include obtaining a survey and undertaking property searches. It is also important to take time to scrutinise the standard property information provided by the seller with the contract paperwork.

Raising formal enquiries in writing based on the outcome of these steps is an important part of the process. Whilst it is true to an extent that sellers are under a duty to disclose certain information without being asked, it is as well to ensure that you have asked all the right questions.

If a seller is judged to have withheld crucial information (or to have provided misleading information) it may be possible to make a legal claim against them for misrepresentation.

What is misrepresentation?

To successfully claim misrepresentation, you will need to establish that you were induced into proceeding with the purchase by the seller’s false or misleading statement, and that this has caused you financial loss.

Whilst the payment of compensation is the most common consequence in a finding of misrepresentation, there is also the option in certain circumstances of “rescission” (cancellation of the transaction, so that it is treated as never having happened in the first place). An example of how devastating an outcome this can be is amply demonstrated in a High Court case this year in which a seller who had misled the buyer about the presence of a wool moth infestation at his property was ordered, amongst other things, to take back the property and refund the buyer the £32.5 million paid for it.

If you believe that you may have suffered a loss as a result of a misrepresentation in a property transaction, it is important that you obtain professional advice from an expert in resolving disputes of this nature.

You can also complete an online enquiry form. One of the Wollens team will contact you as soon as they are available.