You’ve just purchased your dream home, only to discover it’s more of a nightmare. Water seeping through the walls, a faulty electrical system, or structural issues you never knew existed. These house leaks after purchase and other problems with house after purchase can leave you feeling frustrated and overwhelmed. But don’t despair – there are steps you can take to address undisclosed issues and protect your investment.
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Bought a House with Undisclosed Problems? Here’s What You Need to Know
Buying a house is a significant investment for most people, and it is natural to have concerns about undisclosed issues. However, finding undisclosed problems does not necessarily mean it is a disaster:
- If the problems are discovered before the sale is completed, the buyer can withdraw from the purchase or negotiate with the seller for a reduced price or repairs.
- If the problems are found after the sale is completed, the buyer may be able to seek compensation if they can prove that the seller misrepresented the condition of the house.
Undisclosed problems can be a nightmare for house buyers. Here is our advice on how to handle a “disclosure dilemma.”
Understanding Your Rights as a Buyer
When you buy a property in the UK, the principle of “caveat emptor” (buyer beware) applies. This means it’s your responsibility to investigate the property thoroughly before purchase. However, sellers are legally obligated to disclose known defects and answer questions truthfully.If a seller fails to disclose significant problems they were aware of, you may have grounds for a misrepresentation claim. This could entitle you to compensation or even allow you to rescind the contract in severe cases.
Common Undisclosed Issues
Some of the most frequent undisclosed problems include:
- Structural defects
- Damp and mould
- Electrical or plumbing issues
- Planning permission violations
- Boundary disputes
- Japanese knotweed infestations
What To Do If Problems Are Discovered After Purchasing The Property?
Even if you conducted thorough viewings and a home survey, there is still a chance that problems may arise later. These could range from minor issues like a dripping shower head to more significant problems like structural damage or damp.
Whether or not to take action depends on the severity of the issue. If it does not significantly affect the value of the property, it may not be worth pursuing with the seller unless it is a new build.
However, if the problem is substantial, such as structural damage, damp, local planning developments that could impact property value or non-trivial neighbour disputes, a buyer may be able to make a claim against the seller.
To make a successful claim, the buyer must prove that the issue existed at the time of signing the contracts, that it is a legitimate problem, and that it has significantly affected their asset. Buyers typically have six years to bring a claim against the seller.
When buying or selling a house, the responsibility of enquiring about the property falls on the buyer. If you choose to proceed without conducting proper investigations and later discover defects, the seller is not liable.
On the other hand, if the seller provides false information on the property information form or fails to answer your questions truthfully, you may have grounds for a property misrepresentation claim. In such cases, you will need supporting evidence.
If any third party involved in the transaction is at fault for not disclosing problems, you can make a complaint for professional negligence. It is best to raise any inquiries before purchasing the house, as there is a six-year statute of limitations for fraudulent misrepresentation claims.
Steps to Take if You Discover Undisclosed Problems
- Document everything: Take photos, videos, and detailed notes of the issues you’ve discovered.
- Get expert opinions: Have qualified professionals assess the problems and provide written reports.
- Review your paperwork: Check the property information form (TA6) and any other disclosures made by the seller.
- Contact your conveyancer: They can advise you on your legal position and potential next steps.
- Approach the seller: Sometimes, a direct conversation can lead to an amicable resolution.
- Consider legal action: If negotiations fail, you may need to pursue a misrepresentation claim through the courts.
Preventing Future Issues
To avoid buying a house with undisclosed problems in the future:
- Commission a comprehensive building survey
- Ask detailed questions about the property’s history and condition
- Research the area for potential environmental or planning issues
- Don’t rush the process – take time to thoroughly investigate
What Happens If You Find Problems After Buying a House?
Discovering faults after buying a house does not automatically entitle you to sue the seller for non-disclosure. While not mandatory, sellers usually fill out a property information form (TA6) where they disclose relevant information about the property.
As the buyer, you are responsible for raising inquiries, conducting a house survey, and investigating the property’s condition. If the seller is unaware of a problem and cannot answer your inquiries, they must disclose this.
If circumstances change and the seller obtains new information, they must inform you. A thorough house survey should uncover any hidden defects. If your survey fails to uncover such defects, you will need to consider your options.
To make a property misrepresentation claim, you must prove that the defect existed before the exchange of contracts and that the buyer intentionally provided false information. However, some defects may only become apparent after you move into the property, and in such cases, you will be responsible for any necessary repairs.
Did You Know?
Properties in the UK are sold "as seen" under caveat emptor, meaning buyers are solely responsible for investigating the property's condition. However, sellers must be transparent about any known problems, and their solicitors must answer the buyer's legal inquiries. Property misrepresentation cases include structural problems, damp, inaccurate property descriptions, failure to disclose neighbour disputes, failure to disclose water damage, and failure to disclose mould.
Can Someone Sue After Buying a House?
If you have already purchased a house with undisclosed problems and have evidence to support your claim, you can take legal action against the seller under the Misrepresentation Act 1967 or file a complaint for professional negligence if third parties are at fault.
If you discover defects in your home after purchasing it, you can take legal action against the seller. However, you must be able to provide sufficient evidence that the seller was aware of the issue and deliberately tried to deceive you.
In order for your case to be valid, the defect must be significant enough to impact the value of your home or put you in a position of negative equity. For instance, if the seller falsely claims that the property has building regulations, but you later discover that this is not the case, you can pursue legal action.
It is the seller’s legal obligation to truthfully respond to any questions or concerns you or your solicitor raise throughout the conveyancing process. However, it is important for the buyer to actively enquire about the condition of the property. If you fail to do so, you will bear full responsibility for any defects discovered after the purchase.
Don’t let undisclosed problems leave you feeling trapped. Get in touch with Property Saviour today to discuss your situation and explore your options.
Can I Take Legal Action Against My Conveyancer?
If you find any faults in the house you bought due to your solicitor’s negligence, you can resolve the issue by first complaining to the company. You can escalate the matter by complaining to the Legal Ombudsman or the SRA if the matter is unresolved.
Due to conflicts of interest, you cannot communicate with the seller’s solicitor during the purchase process.
Therefore, you cannot sue them directly. Your solicitor is responsible for relaying messages and raising inquiries on your behalf. If your solicitor fails in their duty of care, you can make a complaint.
How Long Do You Have To Report Problems After Buying a House?
You have a six-year window to complain if you bought a house with undisclosed problems. You will need evidence that the problem existed before you exchanged contracts and that the defect is serious enough to affect the value of your house.
Please note that you cannot sue the seller for minor issues like a leaky shower. Alternatively, if this time limit expires, you may be able to extend it to three years from the moment you discover the defect.
Seller’s Obligations
Sellers must complete a property information form (TA6) honestly and to the best of their knowledge. This form covers various aspects of the property, including:
- Boundaries
- Disputes and complaints
- Alterations and building work
- Planning and building control
- Guarantees and warranties
- Environmental matters
The Role of Home Surveys
A thorough home survey is your best defence against undisclosed problems. While it’s an additional expense, it can save you thousands in the long run by uncovering hidden issues before you commit to the purchase.
Can I Claim Against My Surveyor?
Yes, you can claim against your surveyor if they have been professionally negligent and their mistakes have caused you financial loss. Here are the key points to know about making a claim against a surveyor:
- You can claim if the surveyor breached their duty of care by falling below the standard expected of a reasonably competent surveyor.
- Common grounds for claims include:
- Missing significant defects like subsidence or damp
- Providing an incorrect property valuation
- Failing to identify structural issues
- You must prove the surveyor’s negligence directly caused you financial loss.
- Claims must typically be brought within 6 years of the negligence occurring.
- You’ll need expert evidence from an independent surveyor to support your claim.
- Follow the Professional Negligence Pre-Action Protocol before formally starting legal proceedings.
- Consider instructing a specialist professional negligence solicitor to handle your claim.
If you believe your surveyor has been negligent, seek legal advice promptly to assess the viability of a claim and ensure you don’t miss any time limits. With strong evidence of negligence and loss, you may be able to recover compensation through a professional negligence claim against your surveyor.
Can You Sue Your Estate Agent For Negligence?
Yes, you can sue your estate agent for negligence if their actions have led to financial loss or damage. To successfully sue an estate agent for professional negligence, you must prove four key elements:
1. The estate agent owed you a professional duty of care
2. The estate agent breached that duty of care
3. You suffered financial or personal damage
4. The loss was a direct result of the estate agent’s negligence
Common examples of estate agent negligence include:
- Marketing a property significantly below or above its market value
- Providing incorrect advice or information
- Failing to let rental properties at market rates
- Offering legal advice without proper qualifications
Before suing, it’s recommended to first file a formal complaint with the estate agent and attempt to resolve the issue independently or through arbitration. If that fails, you can escalate the matter to a legal ombudsman before taking legal action.
Do Estate Agents Have To Disclose Issues?
Yes, estate agents are legally required to disclose material issues about a property to potential buyers. Key points:
• Estate agents must disclose any information that could influence a buyer’s decision, including known defects, legal issues, or environmental risks.
• This is mandated by the Consumer Protection from Unfair Trading Regulations (CPRs).
• Agents must actively seek out and verify material information about properties they are selling.
• Failure to disclose issues can result in severe penalties, including fines, bans, and even imprisonment.
• Buyers can take legal action if they discover undisclosed issues after purchase.
• Agents should prominently display material information in property listings and marketing materials.
• The goal is to ensure transparency and allow buyers to make fully informed decisions.
Am I Responsible For Repairs After I Sell My House?
Once you sell your house in the UK, you are generally not responsible for repairs after the sale is complete. However, there are some important exceptions:
1. You may be liable for up to 6 years after the sale for issues that:
– Existed at the time of sale
– Were not disclosed to the buyer
– Constitute a misrepresentation under the Misrepresentation Act 1967
2. You are not responsible for:
– New problems that develop after the sale
– Issues caused by the new owner
– Normal wear and tear
3. To protect yourself:
– Disclose all known issues before the sale
– Encourage the buyer to get a thorough survey
– Ensure all information provided is accurate
4. If disputes arise:
– The buyer must provide evidence of misrepresentation
– Legal action may be taken within the 6-year period
– Seeking legal advice is recommended for both parties
Remember, honesty and transparency during the sale process are crucial to avoid potential legal issues after selling your house.
What Do You Need To Declare When Selling a House?
Here are the key things you need to declare when selling a house in the UK:
What You Must Declare When Selling a House
- Structural issues (e.g. subsidence, dampness, cracks in walls)
- Legal disputes (e.g. boundary disputes, planning permission issues)
- Environmental issues (e.g. flooding, radon gas, contaminated land)
- Planning permissions and building regulations for any alterations
- Fixtures and fittings included/excluded from the sale
- Repairs and improvements made to the property
- Disputes or complaints involving neighbours
- Proposals for nearby development or construction
- Crime issues (e.g. burglaries, violent deaths on the property)
- Problems with pests or invasive plants like Japanese knotweed
- Rights of way or shared access arrangements
- Outstanding debts or loans attached to the property
- Issues with utilities or services
The key is to disclose any known information about the property, both positive and negative, that could influence a buyer’s decision. Being honest and transparent helps ensure a smooth sale and protects you from potential legal issues down the line.
Would You Sell Instead?
Litigation is expensive, at around £300/hour.
No litigation solicitor can give you a cast-iron guarantee that your claim will be successful. Even if you are successful, recovering compensation from a seller will be challenging, to say the least.
You can make a complaint with relevant authorities, but even proving negligence against a solicitor or a surveyor is difficult. This will not cost you anything apart from your time, but you may succeed.
On the other hand, you can address the repairs yourself or sell your property as it is to us for cash.
We’ll buy any property for cash, pay £1,500 towards your legal fees, and complete the purchase within 10 working days or at a timescale that works for you.
Sell with certainty & speed
Property Saviour Price Promise
- The price we’ll offer is the price that you will receive with no hidden deductions.
- Be careful with ‘cash buyers’ who require a valuation needed for a mortgage or bridging loan.
- These valuations or surveys result in delays and price reductions later on.
- We are cash buyers. There are no surveys.
- We always provide proof of funds with every formal offer issued.
We'll Pay £1,500 Towards Your Legal Fees
- No long exclusivity agreement to sign because we are the buyers.
- You are welcome to use your own solicitor.
- If you don’t have one, we can ask our solicitors for recommendations.
- We share our solicitor’s details and issue a Memorandum of Sale.
Sell With Certainty & Speed
- Our approach is transparent and ethical, which is why sellers trust us.
- 100% Discretion guaranteed.
- If you have another buyer, you can put us in a contracts race to see who completes first.
- Complete in 10 days or at a timescale that works for you. You are in control.
