Seller beware: the consequences of misrepresentation

However, sellers beware. This initial stage is just as vital for you as it is for the buyer.

Whilst the Latin term Caveat emptor (buyer beware) still applies, putting the onus on the buyer to investigate and discover any defects affecting the property before the exchange, the seller is under a duty to disclose accurate replies to the enquiries imposed either directly from the buyer or raised within the protocol forms.

In giving replies to these enquiries, sellers should note that a statement of fact (reply) will constitute a ‘representation’. Once that representation has been relied upon by the buyer, misrepresentation has occurred if it turns out to be false.

Depending on the nature of the misrepresentation, the buyer will have remedies available from the seller. 

This will result in further time, cost and emotion spent following completion that should have been avoided had the seller fulfilled their duty from the outset.

5 tips in order to avoid misrepresentation

1. Read the instructions on page 1 of the Law Society Property Form before supplying replies
2. Provide accurate replies to all enquiries raised, inform your solicitor of any changes that should be made
3. Disclose any supporting documentation available
4. Do not guess; it’s better to say nothing than provide wrong or inaccurate replies
5. If in doubt, ask your solicitor/conveyancer for help

A seller should always check that their replies are correct and relevant to avoid future litigation and issues. A buyer’s obligation to check does not always trump a seller’s obligation to be true and accurate, having made reasonable enquiries.

Expert advice on conveyancing matters

SO Legal has experienced solicitors and licensed conveyancers in Eastbourne, Brighton, Hastings, London and Uckfield, and we work with clients across the UK.