A Comprehensive Guide to Property Misrepresentation – FAQs Answered
Introduction
Buying a new property is an exciting and significant investment. However, there are instances when buyers may encounter issues related to property misrepresentation. This blog post aims to shed light on some common questions and concerns surrounding property misrepresentation. We’ll explore what it entails, how it can impact buyers, and the legal options available for those affected.
1. Can I Sue My House Seller?
In most cases, buyers are responsible for conducting due diligence on their potential property. However, if the seller makes written misrepresentations about the property that the buyer relies on before exchanging contracts, the buyer may be able to claim against them.
2. What is Property Mis-selling?
Property mis-selling, also known as misrepresentation, occurs when a buyer purchases a new or previously owned property based on inaccurate representations made by the seller. If the representations turn out to be false, the buyer may have a claim for breach of contract and/or misrepresentation. Seeking legal advice promptly is crucial in such situations.
3. How Long Do Property Misrepresentation Cases Take?
Property misrepresentation cases can be complex and may take time to resolve. If both parties agree on liability, the case may settle within a few months. However, some cases may take longer to reach a resolution.
4. Can Someone Sue After Buying a House?
Buyers may be able to claim against someone involved in the property purchase if the seller or any professional involved misrepresents the property to them. Seeking legal advice promptly is essential in such circumstances.
5. What If the Seller Misrepresented the Property’s Condition?
While it is the buyer’s responsibility to investigate the property before purchase, if the seller knowingly misrepresents serious defects that affect the property’s condition, the buyer may be eligible to make a claim against them.
6. What Happens If the Seller’s Information is Inaccurate?
If the seller provides inaccurate information about the property, knowingly misrepresenting key details that lead the buyer to make the purchase, the buyer may have grounds to make a misrepresentation claim against the seller.
7. What is a TA6 or SPIF Disclosure Form?
The Seller’s Property Information Form (SPIF), also known as TA6, is a vital document in the conveyancing process. The seller completes this form, answering questions about the property’s various aspects.
8. What Must a Seller Disclose When Selling a Property?
Sellers are required to disclose a wide range of information about the property they are selling. This includes disputes with neighbors, property alterations, and more. All of this information should be provided within the SPIF or TA6 form.
9. How to Determine If You Have a Case Against a Home Seller?
If you suspect that the home seller misrepresented the property you bought, you may have grounds to make a claim against them. Consult an experienced property law solicitor to evaluate the strength of your case.
10. What Happens If House Sellers Don’t Disclose Something?
If house sellers intentionally withhold crucial information asked during the sales process, it may be considered misrepresentation, and the buyer may have the right to make a claim against them.
11. Can I Claim If a House Seller Lied About Flooding, Structural Problems, Leaks, Damp, or Japanese Knotweed?
If the seller knowingly lied about any of these issues, the buyer may be eligible to make a claim for misrepresentation. Seeking legal advice promptly is vital in these situations.
12. What is the Misrepresentation Act 1967?
The Misrepresentation Act 1967 protects UK buyers from purchasing misrepresented properties. If a seller fails to disclose accurate information about the property, the buyer may have the right to make a claim against them.
13. Do You Have to Declare Neighbor Disputes When Selling a House?
Yes, sellers must declare both past and current neighbor disputes when selling a property to avoid potential legal actions by the buyer.
14. How Long Are You Liable After Selling a House?
The length of liability for sellers can vary depending on the circumstances. It’s advisable to consult a solicitor as soon as possible if you have concerns about potential liability.
The Misrepresentation Act 1967 in simple terms
– The Act is about changing the law related to innocent misrepresentations and making amendments to sections 11 and 35 of the Sale of Goods Act 1893.
– If someone enters into a contract after being given false information (misrepresentation) and the misrepresentation becomes part of the contract or the contract has been fulfilled, they can still cancel the contract without proving fraud, subject to the provisions of this Act.
– If a person suffers a loss because of a misrepresentation made to them by another party, even if the misrepresentation wasn’t intentionally fraudulent, the person who made the misrepresentation may still be liable for damages unless they can prove they had reasonable grounds to believe the information was true.
– In cases where a person is entitled to cancel a contract due to a non-fraudulent misrepresentation, the court or arbitrator can choose to let the contract remain valid and award damages instead of canceling it, if it’s considered fair based on the nature of the misrepresentation and the loss caused by it.
– Damages can be awarded under the above provision regardless of whether the person is also liable for damages due to fraudulent misrepresentation, but any award made for non-fraudulent misrepresentation will be taken into account when assessing liability for fraudulent misrepresentation.
– The Act doesn’t allow a person to claim damages for misrepresentation if they already have a right to redress under Part 4A of the Consumer Protection from Unfair Trading Regulations 2008 for the same conduct constituting the misrepresentation.
– However, this provision doesn’t prevent a debtor from making a claim against a creditor under a debtor-creditor-supplier agreement under section 75(1) of the Consumer Credit Act 1974 for misrepresentation, even if they could have claimed against the supplier under the Consumer Protection from Unfair Trading Regulations.
Conclusion
Property misrepresentation can lead to significant financial and legal implications for both buyers and sellers. If you suspect any misrepresentations during the property buying process, seeking legal advice promptly is essential. Remember that transparency and honesty are essential when buying or selling a property to avoid any potential legal repercussions in the future.