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Caveat Emptor: Let the Buyer Beware - Thomas Crown, Chebsey & Co

Caveat Emptor: Let the Buyer Beware

They say that property is a safe bet. Most of us do not think of property solely in this way, but the vast majority of us will buy into a property perhaps a number of times over our life time in what are the biggest deals we will ever personally be involved with. It is very worthwhile ensuring that you get the deal right and reduce the risks you face.

It has long been the case that the buyer takes the property at their own risk. However, there are, as always, two sides to that coin and it is also true that the seller must proceed with the utmost caution. Should either party have the desire, a property purchase deal between two individuals can fall apart, or be prised apart, in much the same way as the big city deals we all read about. Inevitably, as house prices have rocketed over the last decade, the spectre of property litigation has also grown out of all proportion.

An instruction of a good quality experienced residential property solicitor should be at the top of everyone’s to do list.

When you sell your property you make statements to, offer guarantees to and otherwise reply to enquiries raised by your prospective purchaser. These written or oral statements become the facts and details that under pin the contract for the sale of your property and in most cases they will be binding upon you to the full extent of the law.

It pays to be crystal clear in all the details that are provided to a prospective purchaser. Should a buyer have cause to question the veracity of any statement they have received from the sellers then the law allows that buyer to base a claim upon any of these statements to recover losses, damages or additional costs that my have been incurred.

It is common knowledge that one must always make sure that there is full disclosure regarding boundaries, services, parking and neighbours. However, it is perhaps less widely appreciated that even where the seller believes they are being entirely honest, the law will not allow them to escape liability for any statements made to the buyer that are proven to be inaccurate.

We have already seen a recent dispute arise over innocently naive statements made during a property transaction. In this case, the statement made by the seller was that no major re-wiring had been undertaken on the property. The justification for the question by the prospective purchaser being that, if any major re-wiring had been undertaken, they would want to see the building regulations notice of compliance and any guarantees; perhaps an issue in itself for the DIY practitioner or the family and friends of electricians!

The issue in this case was that, following and arguably as a result of the statement made above, the buyer paid for the property and took possession. The buyer then discovered that the seller had in fact installed an electric shower during their many years in ownership of the property; as innumerable other home owners will also have done in the last decade. This required the connection of a new outlet to the property’s main supply. This required re-wiring!

Was this major re-wiring and therefore is the sellers answer to the question wrong? Is there really any loss or risk to the purchaser and any reason for them to raise the issue? As long as these or any other questions can be raised, both seller and purchaser can find themselves contemplating large legal bills and potential compensation payments when they should be picking out new carpets and curtains. There is no better preventative step than getting the right advice at the right time.

Thomas Crown

Tom Crown is a Solicitor at Chebsey & Co and can be contacted at Chebsey & Co, 51 London End, Beaconsfield, HP9 2HW www.chebsey.com Tel; 01494 670440

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