Selling Smart: What You Must Disclose When Selling Your Property

Selling a home is exciting, but the process can feel overwhelming. Between cleaning, decluttering, viewings, and navigating the legal hurdles, it’s easy to forget some crucial steps. One aspect that’s often overlooked is disclosure.

Understanding what you must disclose (legally) when you sell your home is vital. Not only does it protect you from potentially serious legal repercussions, but it also encourages trust and transparency with your potential buyers.

So, what do you need to disclose?

Title and Ownership

Who owns the property is the foundation of any property sale. You’ll need to provide documents proving your legal ownership, such as the Land Registry Title Deeds or lease agreement (if your property is leasehold). Additionally, you must disclose any outstanding mortgages or charges on the property.

Property Information Form (TA6)

This standardised form, completed with your lawyer’s guidance, is a comprehensive disclosure document. It covers various aspects, such as:

Property details: The number of bedrooms, bathrooms, square footage, etc.
Energy Performance Certificate (EPC): This document rates the property’s energy efficiency, impacting potential buyers’ decisions and mortgage eligibility.
Boundaries: Clearly defining the property’s physical boundaries helps to avoid future disputes with neighbours.
Building Regulations and Warranties: Disclose any building regulations and permits you’ve obtained, including ongoing warranties associated with the property.
Planning permissions: All past or ongoing planning permissions for extensions or alterations must be disclosed.
Defects and Problems: Be upfront about any known structural issues. This includes plumbing problems or significant repairs you have undertaken.
Neighbours and Disputes: Disclose any ongoing disputes with neighbours or potential issues like noise complaints or boundary disagreements.
Insurance: Provide details about current insurance coverage and any claims made in the past.

Additional Disclosures

While not covered in the official TA6 form, ethically, you should disclose the following information:

Presence of hazardous materials: If you’re aware of asbestos, lead paint, or other dangerous materials, you must disclose them.
Environmental concerns: Be upfront about environmental issues like flooding risks or contaminated land.
Deaths in the property: While not legally required, disclosing knowledge of past deaths within the property can be considerate and avoid upsetting buyers later.

Beware

The purchase of a home is the largest financial transaction that most people will make. While the principle of caveat emptor or “let the buyer beware” places the buyer under an obligation to discover any physical defects in the property they buy, leaving something out or misrepresenting the facts can come back to haunt you. As the following cases illustrate.

Morrell v Stewart [2015] EWHC 962 (Ch)

This case involved issues around foul water drainage. The seller failed to disclose problems affecting the drainage and subsequent remedial works. The seller argued that they did not disclose those matters because they thought the remedial work had cured the problem. However, the court felt this left the buyer disadvantaged because they could not check if the problems were fully resolved. As a result, the sellers were ordered £33,000 compensation to the buyers.

Downing v Henderson (2023)

2018 Jonathan Downing bought a 3-bedroom house in SW London from Mr Henderson for £700k. He found Japanese Knotweed was growing in the garden shed, even though Mr Henderson had confirmed in the TA6 form that the property was unaffected. Mr Downing sued the seller for misrepresentation, challenging the ‘no’ response on the TA6 form. While the seller said he’d lived in the property for three years and wasn’t aware of the weed, the court ruled in Mr Downing’s favour, relying on Mr Downing’s expert evidence. The ‘no’ on the TA6 form was deemed fraudulent, leaving Mr Henderson facing costs. This case highlights the importance of only answering “no” to the presence of Japanese Knotweed if you are certain there is none.

Our Advice

Always be honest and transparent in your disclosures. Withholding information can lead to legal repercussions, including fines, buyers cancelling the contract, and potential compensation claims.

Consult specialist lawyers to ensure you understand your disclosure obligations and complete the TA6 accurately. By following these guidelines and embracing transparency, you can confidently navigate the property sale process, fostering trust with potential buyers and achieving a smooth and successful transaction.

For further information or advice about selling a property or any other property matter, please contact us. We’re here to help.

Please note that all views, comments or opinions expressed are for information only and do not constitute and should not be interpreted as being comprehensive or as giving legal advice. No one should seek to rely or act upon, or refrain from acting upon, the views, comments or opinions expressed herein without first obtaining specialist, professional or independent advice. While every effort has been made to ensure accuracy, Curtis Parkinson cannot be held liable for any errors, omissions or inaccuracies.