Selling a property? Be careful what you say!
- What’s misrepresentation? It’s when a seller fails to disclose something or doesn’t tell the truth perhaps on the Seller’s Property Information Form (Form TA6) or in response to enquiries.
- What’s the risk? A buyer could claim compensation, even after the property sale has gone through!
Quite simply, the seller has to disclose anything that may impact the buyer’s decision to proceed. And here’s the ‘bitter pill’; if the seller omits anything of importance that they knew about, then they could face a claim regardless of whether the buyer asked about it or not!
Help, what can I say: Issues for the Seller to Bear in Mind
- When completing Form TA6, stick to facts. Don’t give an opinion.
- If you don’t know the answer, don’t speculate. Just say you don’t know. Statements like “not as far as I’m aware” will be taken to mean that you have checked.
- Be careful about correcting a buyer’s misunderstanding. It’s not normally a misrepresentation to remain silent; usually there has to be something said which is factually untrue. However, you could be subject to a claim of misrepresentation if you allow the buyer to proceed on an obvious error.
- Historically it is rare for the Court to force the seller to take the property back and pay money back but, in a very extreme case, it could happen
- If something was true when you said it but the situation changes, say!
- If a conveyancer gives or receives information on your behalf, then you will be treated, legally, as having the information as well.
Be honest or keep quiet! Issues of Disclosure
Sellers have fallen foul of the law in each of these areas so to avoid problems, the guiding principal for completing Form TA6 has to be to answer honestly or not at all.
“The Seller told me ….:
- ….all is well with the neighbours” – well it isn’t if sellers have had any disputes with neighbours that have resulted in written exchanges, or had police or local authority involvement. Not to mention any Anti-Social Behaviour Orders (ASBO) issued.
- ….there are no planning permissions for the property” – the seller has to declare any pending, granted or denied planning applications.
- ….there’s never been any flooding of this property” – one person’s flooding may be another persons waterlogging! Even a flood report that cites a ‘low flood risk’ will lead to misrepresentation if not declared.
- ….there’s no Japanese Knotweed on the property” – quite simply, this must be declared if there is a problem. Equally problems with pests e.g. bats whether current or historic need to be stated.
And remember…
completing a TA6 is just one of those occasions when it really is better to tell the truth, the whole truth and nothing but the truth. We are here to help and if you have any questions please contact us.
