Disclosure of information to a buyer - How far does a seller have to go?

There is an obligation on all sellers to disclose all information about the property which is within their knowledge. With the advent of the Property Information Form to be included in Home Information Packs from the 6th April 2009 there will soon be more documents for a seller to complete revealing personal knowledge of the property. The issue of disclosure has been the subject of extensive case law which has recently established that substantial damages can be awarded to victims of misrepresentation where it can have an adverse affect on the property valuation. Some property lawyer s have relied on the concept of caveat emptor, or “let the buyer beware”, but there is an emerging tendency for the courts to oblige sellers to disclose full details of everything about the property within their knowledge regardless of whether it is freehold or leasehold.

This can range from the existence of dry rot or damp, to a neighbour dispute. In a 2008 case damages were assessed at £67,000 following a failure to disclose the existence of a dispute with a neighbour. Be aware that your property lawyer also has a duty to disclose information he or she knows about, and may refuse to accept instructions from a client unwilling for such information to be disclosed.