Restrictive Covenants
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Selling a house, what do I need to declare?
If you are selling a property, it is a legal obligation to give full disclosure of the property to the buyer.
As part of selling a house or flat you must make sure anyone buying is aware of problems with the property that are not obvious before a sale can go ahead, you have an obligation to make the buyer aware of problems they cannot see, for example, if you have rot in timbers in the roof, but you do not have an obligation to make them aware of problems they can see, it is an offence if you try to cover these up.
The law is designed to protect buyers and stipulates that a buyer must be aware of ‘latent defects and encumbrances’
Latent defect – a defect in a property, caused by a fault in design, materials or workmanship, not apparent.
Encumbrances – any claim on the property, mortgage etc
How to disclose information.
You will be required to complete a property information form (TA6 Form) as part of the Conveyancing process, the form is designed to provide full disclosure about the property and should be completed in full, the form covers among others–
• Planning history, and details of any alterations
• Property disputes such as boundary issues
• Insurance and any problems such as flooding
• Defects to the property.
Any false information given will expose the seller to claims from the buyer in the future, which may not be limited to the cost of repair.
The property information form is part of the pre-contract documents submitted to the buyer by your solicitor.
In the event of a claim.
The contract of sale should allow for buyers to make a claim against the seller if there is material difference between the property as offered for sale and the actual condition of the property, the buyer will be able to claim through the courts, if it is found that the seller has given false information the sale can be void.
It is important that the seller gives full disclosure on the property information form, insurances are also available for some properties to protect sellers from any future claim and you should discuss this with your solicitor.
Time limits apply to any claims.
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