What You Need to Legally Disclose When Selling a House
Selling a house comes with responsibilities, not least the legal obligation to disclose certain information to potential buyers. These disclosures build trust between the seller and the buyer, and failure to disclose them can lead to severe legal and financial repercussions. This article provides a guide for sellers on what must be legally disclosed when putting a house on the market in the UK.
The shift from Caveat Emperor to Consumer Protection
Historically, the principle of 'caveat emperor', or 'buyer beware', governed property transactions in the UK. Under this principle, it was the buyer's responsibility to investigate all aspects of the property and uncover any potential issues. However, this has changed significantly with the introduction of the Consumer Protection Against Unfair Trading Regulations. These regulations have effectively reversed the responsibility, placing the onus on the seller to disclose anything that may impact the buyer's decision to proceed with the purchase. Failure to disclose important information could even lead to prosecution, making it imperative for sellers to be transparent and honest.
The Property Information Form (TA6)
One of the key documents in the house-selling process is the Property Information Form, commonly known as the TA6 form. This form is usually sent to the seller's solicitor by the buyer's solicitor and plays a crucial role in formalising disclosures. The TA6 form requires sellers to provide details about the property under various categories, including but not limited to:
- Information on property boundaries
- Shared areas with neighbours
- Changes made to the property, such as extensions
- Guarantees and warranties affecting the property
- Disputes or complaints involving neighbours
- Environmental matters
- Building insurance details
- Known structural issues
Filling out the TA6 form with honesty and to the best of your knowledge is not just advisable but legally imperative.
Important issues to disclose
When it comes to selling your house, there are several key issues that you’re legally obligated to disclose to potential buyers. These issues can significantly impact the value of the property and the buyer's decision to proceed with the purchase. Here are some of the most important issues that must be disclosed:
- Flooding issues: if the property has a history of flooding or is situated in a flood-prone area, this must be disclosed. Failure to do so could lead to legal action.
- Structural issues: any known structural problems, such as subsidence or damp, must be disclosed. Concealing such issues can result in severe legal repercussions.
- Proposals for nearby development: if you’re aware of any planning permissions or proposals for development in the vicinity that could affect the property's value or the quality of life for the residents, this information must be shared.
- Pest infestations: a history of pest infestations, such as rats or termites, should also be disclosed to the buyer.
- Asbestos and other hazardous materials: if the property contains asbestos or other hazardous materials, this must be disclosed, and appropriate documentation should be provided.
Being transparent about these issues not only fulfils your legal obligations but also builds trust with potential buyers, making the selling process smoother.
Disclosing information about neighbours
While it may seem like a private matter, information about neighbours and any disputes or complaints you've had with them must also be disclosed. This includes issues such as boundary disputes, noise complaints, or any other form of anti-social behaviour. Failure to disclose such information could lead to legal action against you, as it could materially affect the buyer's decision to complete the purchase. It's always better to be upfront about any neighbour-related issues to avoid complications down the line.
Consequences of non-disclosure
The repercussions of failing to disclose important information can be severe. Not only could you face legal action, but you may also be liable for financial compensation to the buyer. In extreme cases, the sale could be rescinded, causing you to lose the buyer and potentially affecting the property's market value. Moreover, your reputation as a seller could be tarnished, making it more difficult to sell properties in the future. Therefore, it's crucial to be as transparent as possible to avoid these pitfalls.
How to reassure potential buyers
Being transparent about the property's condition and history is not just a legal requirement but also a strategy to build trust with potential buyers. Here are some tips to reassure buyers:
- Provide evidence for resolved issues: if you've fixed structural problems or resolved disputes with neighbours, provide documentation to prove it. This can include repair invoices or written agreements.
- Offer a home report: a home report, which includes a property survey and an energy performance certificate, can provide an unbiased view of the property's condition.
- Be open during viewings: use the opportunity of property viewings to discuss any issues openly. This can help you gauge the buyer's concerns and address them proactively.
- Consult your solicitor: before making any disclosures, it's advisable to consult your solicitor to ensure you're meeting all legal requirements.
By taking these steps, you can reassure potential buyers and pave the way for a smoother, more transparent selling process.
Seek expert legal advice
The process of selling a house comes with various legal obligations, the most important of which is the duty to disclose certain information to potential buyers. Failure to do so can result in severe legal and financial consequences. Therefore, honesty and full disclosure are not just ethical practices but legal imperatives. By being transparent and providing all the necessary information, you can facilitate a smoother selling process and avoid potential pitfalls.
Talk to Us
If you don’t disclose the required information to buyers before selling a house, they’ll likely have grounds to claim compensation. Contact JMW Solicitors today for assistance with selling a house, by calling 0345 872 6666 or filling out our enquiry form.
