26 Nov What Issues Do You Legally Have to Disclose When Selling a Property?
Property transactions have seen considerable changes over the years. Gone are the days of ‘buyer beware’, where the burden was placed entirely on purchasers. Now, sellers are legally obligated under the Consumer Protection from Unfair Trading Regulations 2008 to disclose all material information that could influence a buyer’s decision to purchase the property, or affect the price they’re willing to pay.
While this shift towards greater transparency is good news, it does beg the question: what issues are legally required to be disclosed before you accept an offer on your home?
Disclosures related to the property’s physical condition
The TA6 form is an important document in a house sale which asks sellers to provide the buyer with vital information about the property in question. It’s not mandatory, but all sellers should endeavour to complete the form as thoroughly and honestly as possible, as doing so can help speed up the transaction and avoid any disputes down the line. If false or incorrect information is supplied, the seller could be liable for paying compensation to the buyer, or even have the sale fall through completely.
When completing the TA6 form, sellers need to be forthcoming about any known defects with the structural integrity of the property. This includes problems with damp, timber rot, significant cracks, or subsidence, all of which can impact the foundations of the building and its stability. Even if remedial work has been carried out, these issues have to be detailed and provided to the buyer because they’re crucial to the property’s history.
Another factor that has to be disclosed is environmental concerns. If there’s ever been flooding on the property, or if the building is located in a known flood-risk area, and if invasive plants like Japanese knotweed are present, buyers need to know. Sellers also need to reveal if the property is located near contaminated land or within an area known for elevated radon gas levels, as these factors can impact both the value of the property and the health of its occupants.
Alterations, planning, and boundaries
Alterations to the property that have occurred during your ownership, or any that you’re aware of from previous owners, also need to be disclosed early on. This includes loft conversions, extensions, conservatories, and any significant changes to the structure of the building like the removal of a chimney breast or knocking down internal walls.
It’s not just mentioning these works that is important. Sellers also need to provide all valid Planning Permission and Building Control Completion certificates for these alterations, to prove that the work was completed to the necessary standards and meets with building regulations.
The Party Wall Act 1996 introduces an additional obligation for any property where work has been carried out on or near shared boundaries. This legislation applies to deep excavations as well as those affecting shared walls between semi-detached or terraced properties.
Sellers need to disclose whether they served notices to affected neighbours before this work was carried out and provide copies of consents or formal Party Wall Awards, to prove that the correct procedures were followed. You can read more about Party Wall Notices here in this guide by chartered building surveyors, Squarepoint Surveyors.
Sellers should also disclose any transferable guarantees or warranties that provide ongoing protection to the property, like guarantees for damp-proofing treatments, underpinning works, or new-build warranties such as those provided by the National House Building Council (NHBC).
Neighbour disputes and external factors
On the subject of neighbours, disputes are a common source of tension in property transactions, and no-one wants to inherit difficulties when they move house. Sellers need to clearly state who is responsible for maintaining fences, walls, hedges, and any other boundary features, as well as any past or ongoing disputes regarding this topic.
Similarly, if any formal complaints or disagreements have taken place over noise levels, rights of access, parking arrangements, or anti-social behaviour, it’s important to let buyers know. Whether these conflicts have been resolved or are ongoing, they form information that could influence whether you continue with or walk away from a transaction, so they need to be disclosed.
External factors play a part too. This includes any official notices of proposals for nearby developments or construction projects, planned changes to traffic management, and parking restrictions. Local authority notices regarding planning applications for neighbouring properties or infrastructure projects can significantly impact a property’s desirability and value.
The consequences of getting it wrong
It can feel like an overwhelming amount of information to disclose, but the implications of concealing these details can be severe. From a practical standpoint, missing documents or incomplete information will cause significant delays to your sale, as solicitors who identify gaps won’t be able to proceed without the information being provided.
From a legal perspective, non-disclosure or misrepresentation is even more serious. Buyers who discover problems after completion are well within their rights to pursue claims against the seller, which can result in substantial compensation costs or even rescission of the contract, effectively unwinding the transaction.
To protect yourself and your buyer, ensure that you’re as comprehensive as possible when providing information and provide as much documentation as you can to back up your claims.
A cash resolution
If you do have these types of issues with your property, you can still sell the property quickly. As a cash buying company, Home House Buyers are able to buy properties like this and alleviate the stresses and strains such situations inevitably create.