Misrepresentation in Sale of Property

Misrepresentation can occur when completing the Seller's Property Information Form or replying to Enquiries. All of the information you provide will be relied upon by the buyer(s) of the property so it is important that you take great care.

NB: When completing the forms in the Conveyancing Process, and when responding to any enquiries raised, it is important that:

• The answers are provided by the person or persons named as owner on the deeds or HM Land Registry title (office copies of registered title), or by the owner's legal representative(s), where selling under a power of attorney or grant of probate. If there is more than one seller, it is advisable that you prepare the answers together, or if only one seller completes the Seller's Property Information Form, the other(s) then check the answers given, and all sellers should sign the form once satisfied.

• You should answer all questions as accurately as possible and from your own knowledge. Sellers are not expected to have expert knowledge of legal or technical matters or matters that occurred prior to ownership of the property. It is also worth remembering that there is some information that a buyer should obtain by carrying out a survey, arranging an inspection by an expert or by way of various searches.

• If you do not know the answer then say this. Do not speculate.

• It is very important that your answers are truthful. If you give incorrect or incomplete information to the buyer (on the Seller's Property Information Form or in written replies or in conversation, whether through your estate agent or conveyancer or directly to the buyer), then a buyer could make a claim for compensation from you or refuse to complete the purchase.

• If you become aware of any information which would alter any replies you have given, you must inform your conveyancer immediately. This is as important as giving the right answers in the first place. You should NOT change any arrangements concerning the property (such as with a tenant or neighbour) which would alter or affect the information you have previously given without consulting with your conveyancer beforehand.

• If you do not know the answer to any question, you should say so. If you are unsure of the meaning of any of the questions then ask your conveyancer . Delays in completing the Seller's Property Information Form and/or responding to enquiries raised by the Buyer or their conveyancer may affect the sale.

• You give to your conveyancer any letters, permissions, consents, warranties, guarantees, certificates, agreements, or other documents which help answer the enquiries. The buyer will want the originals, if you hold them.

• If you are aware of any relevant information but you are unable to evidence this then tell your conveyancer. If some of the documents are lost, you may need to obtain copies at your own expense. You should also pass on promptly to your conveyancer any notices or other information you have received concerning the property, and any that arrive before completion occurs. If you are not sure if a notice is relevant or not then check with your conveyancer.

What’s The Worst That Could Happen?

Caselaw exists where buyers have sued sellers for losses in property value due to relying on misrepresented information given by the seller during the conveyancing process. The buyers relied on information provided by the seller and may not have purchased the property had the situation not been misrepresented. Following completion the misrepresentation becomes obvious. The property value is affected by the issue and the buyer suffers significant costs in remedying the problem. In some circumstances buyers are able to formulate a case against the seller and recover their losses.

In one notable example this centred around the presence of Japanese Knotweed at the property. In another the property had a serious moth infestation and significant damage to the property and its contents occurred post completion. In both matters the buyers were successful.

In essence beware and take care with your replies.