Last week, the BBC reported how a couple who bought a £32.5m mansion can hand it back and have most of their money returned after they found out it had a “severe moth infestation.” The buyers found moths throughout their property, with many items having to be thrown away.
The High Court Judge, who ruled in the couple’s favour, found that the vendor had given “false” answers about the state of the property in west London and failed “honestly to disclose” the “serious infestation.”
The seller told the court he had been advised that moths were not vermin when in fact two reports from pest control companies before the sale, had reported that there was a “serious” moth infestation in the property’s insulation.” He stated that he had not deliberately tried to deceive the purchasers, but had “simply wanted to sell the house and move on” and knew disclosure would causes the sale to “go off.”
The judge ordered the sale be rescinded, with the seller required to reimburse the purchase price, minus about £6m to recognise the couple’s use of the property. The seller was also ordered to pay the couple an additional £4m in damages for the infestation, including £15,000 for ruined clothes and £3.7m paid in stamp duty.
Legal obligation
When selling your home, you might not want to highlight any problematic issues. It’s normal to believe that anything negative may impact the price you receive. But it’s worth pointing out that under the Consumer Protection Against Unfair Trading Rules, you must share with a potential buyer all relevant information, bad and good, about the property. This includes:
- Any known structural issues with the property
- Flooding issues, whether current or historic
- Damp
- Environmental matters affecting the property
- The presence of Japanese knotweed
- Pest infestations
- Proposals for nearby development and construction
- A planned flight path nearby or one which is planned
- A motorway within view or one which is planned
- Any disputes with neighbours.
- Shared areas with neighbours
- If there has ever been a violent death
- If crime levels are high
- Changes made to the property, such as extensions
- Guarantees and warranties affecting the property
- Building insurance details
Criminal offence
Failure to share information, which is later uncovered in a survey, in a discussion, or by something untoward happening, could necessitate the buyer taking legal action against the seller. And in some cases the seller could face prosecution, as withholding that information is a form of “non-disclosure” and considered a criminal offence. The end result could be a claim for misrepresenting the property, financial compensation, or a complete cancellation of the sale.
Helen Checketts, Head of Property at Alsters Kelley said. “This case highlights the importance of declaring everything about your property when you are preparing to sell it. It’s essential that the contract pack is 100% accurate and that everyone involved in the sale takes the time to read through it properly and any concerns are raised at an early stage.”
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For a free no hidden fees quote to buy or sell a property, then please visit our website www.alsterskelley.com. Alternatively if you would like to speak to Helen or one of the team we have a network of offices covering Coventry, Leamington, Nuneaton, Stratford-upon-Avon and Southam, making us very accessible. For timely and quality advice, please contact Helen Checketts, Head of Property at Alsters Kelley on 01926 356 000 or email helen.checketts@alsterskelley.com.
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Helen Checketts
Helen’s role is to assist individuals with a wide variety of property transactions.
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