There is a chance that with the rush to complete, some sellers could be tempted to hide important information about their home in an attempt to avoid any delays in a sale going through.
The UK housing market has seen a soar in sales since the Chancellor announced a stamp duty holiday that would last until March 2021.1 The residential property pipeline is up by 50% on this time last year.2However, this is creating a backlog and there is some concern that not all properties with sales agreed since the announcement will complete in time to be able to enjoy the relief of up to £15,000.3
No cutting corners
When purchasing a new home, the buyer will ask questions to the seller to find out information about the property. This may include questions about:
- Neighbour disputes
- Planning consents for any changes to the building
- Notice of any planning applications received in respect of nearby land
- Boundaries
- Maintenance of appliances such as boilers
- Guarantees on replacement fixtures such as windows
If a seller denies or lies about the extent of any problems with the property when asked as part of the conveyancing process, this could result in a claim against them by the purchaser for misrepresentation.4
Contract disputes cover
If a customer has legal expenses cover attached to their insurance policy, they may be able to take legal action against the seller of a property or indeed defend legal action taken against them as a seller. This would be under contract disputes cover which is usually available under a typical household legal expenses policy. It is important that the terms and conditions of the policy wording are understood in respect of the cover provided.
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