On the sale of a property, a solicitor will always remind their seller client of the importance of ensuring that replies to all enquiries made by the buyer and their solicitor are complete and honest. In many property transactions, a standard form, known as a 'Property Information Form' is completed by the seller and handed over to the buyer as part of the contract package.
In a recent High Court case the buyer of a property comprising a house, cattery and kennels was awarded £33,000 in damages as they relied on a statement made by the buyer which turned out to be untrue. This is known as a 'misrepresentation' and was a costly untrue statement by the sellers in this case.
It only became clear after the buyers had bought the property that there were problems with the drainage at the property. In the replies to the Property Information Form and to subsequent questions, the sellers had indicated that remedial work had been done and that they not had any communication with anyone about the issue. Both statements were untrue and the court held in the buyers favour.
The buyers positon was not without its problems however because they had not had a survey of the property carried out prior to buying it. This is a risky strategy.
The case is a timely reminder of the importance of obtaining proper legal advice when buying and selling a property.
To discuss this or any property related matter, contact us.