MISREPRESENTATION IN PROPERTY TRANSACTIONS: WHAT BUYERS AND SELLERS NEED TO KNOW

Founding Partner Stuart Forsdike of PCS Legal was recently quoted in The Telegraph commenting on the growing number of disputes arising when buyers discover serious problems with a property after completion.

The article explored cases involving infestations, Japanese knotweed, neighbour disputes and other issues that were either not disclosed, or not fully disclosed, during the conveyancing process. These situations often leave buyers asking whether they have any legal recourse once the purchase has completed.

Caveat emptor: how the conveyancing process works

Residential conveyancing in England and Wales operates on the principle of caveat emptor, meaning “let the buyer beware”. When an offer is accepted, neither party is legally bound. The crucial stage is the period before exchange of contracts, when investigations are carried out and potential issues should come to light.

During this stage, the buyer’s solicitor will:

-        Review the title to the property

-        Raise pre-contract enquiries

-        Consider the TA6 Property Information Form completed by the seller

The TA6 form plays a key role in the transaction. Sellers are expected to disclose any known issues relating to the property, including disputes, infestations, structural concerns and environmental risks.

What is misrepresentation?

If a seller provides false or misleading information in the TA6 form, this may amount to misrepresentation. In those circumstances, a buyer may be entitled to bring a legal claim.

The available remedies depend on the severity of the issue and the facts of the case, but may include:

-        A claim for damages

-        In more serious cases, rescission of the contract, effectively undoing the transaction

A crucial legal distinction is whether the seller knew about the issue at the time of sale. If a problem only comes to light after completion, the key question is whether the seller was aware of it and failed to disclose it, or whether they genuinely had no knowledge. Where a seller had no knowledge, a buyer’s legal options may be limited.

Why surveys are still essential

It is important to understand that conveyancing deals purely with the legal transfer of ownership. It does not assess the physical condition of a property.

For this reason, buyers should always commission an independent survey. While RICS Level 1 or Level 2 surveys may be suitable in some cases, older or larger properties often justify a more detailed Level 3 building survey. These surveys can identify issues such as damp, rot or structural movement, problems that would not appear through the legal process alone.

Advice

For sellers, honesty and care when completing property information forms are essential. Rushing answers or failing to read guidance properly can have serious legal consequences.

For buyers, thorough due diligence remains the best protection. This includes instructing experienced conveyancing solicitors, commissioning an appropriate survey and raising any concerns before exchange of contracts.

As the Telegraph article here demonstrates, prevention is far better than cure when it comes to property disputes.