Buyer Beware: What Happens when a Seller Fails to Disclose a Property Defect or Dispute?

Buying a property is undoubtedly one of the biggest financial commitments that most people will ever make. When a serious issue comes to light after completion, it can feel deeply unfair – especially if you suspect or have evidence to suggest that the seller knew about the issue but failed to disclose it.

So what does the law say, and what options are available if a seller has not been honest?

In England and Wales, property sales are generally governed by the principle of “caveat emptor” meaning buyer beware. This means that, in most cases, the buyer is responsible for investigating the condition of the property before exchange of contracts. Importantly, however, this does not give sellers a free past to be dishonest. During the sale process, the buyer’s solicitors raise standard enquiries and sometimes additional bespoke enquiries to flush out information about the property. Whilst a seller is not generally required to volunteer information, they must not provide false or misleading information when responding to these enquiries. Sellers are required to complete the Property Information Form (TA6) honestly and accurately. If they fail to do so, they may be legally liable.

We frequently see property disputes arise where sellers fail to disclose issues such as:

• Structural problems (including subsidence or serious cracking)
• Flooding history
• Boundary disputes or neighbour complaints
• Defective roofs, drainage or utilities

When a seller provides false or misleading information that induces a buyer to proceed with the purchase, this may amount to a misrepresentation in law. A misrepresentation can be fraudulent (where the seller knowingly provided false information),negligent (where the seller carelessly provided false information), or innocent (where the seller genuinely believed the information was correct, but it later turns out to be false). The types of misrepresentation can impact the potential remedies available if the buyer succeeds in a potential claim.

If a buyer discovers that they have a claim for misrepresentation after completion, they may be able to pursue legal action to pursue damages or rescission of the contract (i.e. unwinding the contract).

Each case turns on its own facts, including what the seller knew, what was said in writing, and whether the buyer relied on that information. In every case, evidence is crucial and the burden is on the buyer to prove their claim.

Evidence will include:

• The completed TA6 Property Information Form
• Pre-contract enquiries and responses
• Survey reports
• Emails or correspondence with the seller or agents
• Expert reports on the defect

Can these disputes be resolved without court?

Yes, many property disputes are resolved through negotiation or alternative dispute resolution, such as mediation. Pursing an out of court settlement can reduce the cost, stress and delay in dealing with protracted court proceedings.

In any case, if you discover a significant defect shortly after purchasing a property and believe it was not properly disclosed, it is sensible to seek legal advice as soon as possible.

Need Advice About False or Misleading Information in a Property Sale?

If you believe a seller provided false or misleading information on the TA6 form or during the conveyancing process, and you are now facing an undisclosed defect or dispute, our Dispute Resolution team can help. We advise on property misrepresentation claims, evidence gathering, and the best routes to resolve disputes – whether through negotiation, mediation, or formal legal action.

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