Buying a house is a significant step and knowing what sellers must legally tell you about their property is vital to making sure the deal is fair. If a seller is not forthcoming about hidden defects or other important information that the buyer needs, this could entitle the buyer to make a property misrepresentation claim and seek compensation for losses, or take other legal action.

Here, the expert conveyancing team at JMW explains what information must be shared by the seller or estate agent, including details about the property information form, and what you can do as a buyer if you believe that a seller misrepresented a property before you bought it. With our expertise in property transactions, we can also help you to seek a remedy if property misrepresentation occurs, and represent you during the legal process.

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What Must a Seller Disclose in a Property Information Form?

When you set out to buy a house, certain legalities dictate what must be disclosed by the seller. Central to this is the TA6 property information form. This document is a comprehensive questionnaire that sellers complete, detailing various aspects of the property. It includes questions about the property's boundaries, any disputes with neighbours, known structural issues, and details of alterations or extensions that have been carried out. Sellers must also declare whether the property is connected to mains water, has any issues with flooding, or if there are any formal and informal arrangements that affect the property, like shared access. Accurate completion of the property information form is a legal requirement, and you can find out more in our guide for sellers.

Alongside the seller, the Consumer Protection from Unfair Trading Regulations 2008 bind the estate agent to operate in a manner that is fair to potential buyers. These regulations prohibit estate agents from withholding material information that could influence a buyer's decision or affect the value or desirability of the property.

For instance, if there are known issues with property boundaries, these must be declared. The same goes for any structural issues the seller is aware of. Not disclosing such information can be seen as misleading, and the estate agent, as well as the seller, can be held accountable for that. Any such misleading or false information could be grounds for legal action post-completion.

Your conveyancing solicitor will review the property information form carefully, and if anything is amiss or details are unclear, they can raise enquiries and address any potential issues before you commit to buying the property. If the buyer's solicitor discovers that information has been withheld during the conveyancing process, there are legal channels through which the buyer can seek recourse. This could range from renegotiation of the purchase price to, in extreme cases, pulling out of the purchase altogether or making a property misrepresentation claim.

What Happens When the Estate Agent or Seller Withholds Information?

If an estate agent or seller withholds information that should legally be disclosed, it can lead to serious consequences. Such omissions can skew the buyer's decision, sometimes resulting in a purchase they would have otherwise reconsidered.

For example, if an estate agent knows of a major structural issue with a property and fails to inform the potential buyer, this is a clear breach of their duty under the Consumer Protection from Unfair Trading Regulations. The estate agent is required to disclose any such information that could impact the buyer's decision to proceed with the purchase.

Similarly, sellers are obligated to be honest on the property information form. Withholding information here can also lead to legal repercussions. If, after the sale is completed, it comes to light that the seller knowingly omitted or misrepresented information about the property, the buyer may have grounds for redress.

What Can Buyers Do if Disclosures Are Incomplete or Misleading? Rescission and Damages

If a buyer finds that disclosures are incomplete or misleading after the purchase of a house, there are several steps they can take. The first action should be to seek legal advice from an experienced conveyancing solicitor, who can advise on the legal standpoint and the options available. The buyer may be entitled to compensation, or in some cases, rescission of the contract may be possible, which allows the buyer to reverse the transaction.

In instances where important information is discovered to have been withheld, the buyer has several options. They can report the estate agent to the relevant professional body, such as the National Association of Estate Agents, or to the Trading Standards office, which can take action if the agent has breached consumer protection laws. If they have lost money as a result, they may also be entitled to make a professional negligence claim.

In the most serious cases, the buyer may be able to make a legal claim against the seller to recover their losses under the Misrepresentation Act 1967. If it can be proven that the seller or estate agent deliberately withheld or misrepresented information that influenced the buyer's decision to purchase, the buyer may be entitled to compensation for any losses incurred.

If you believe you are entitled to make a misrepresentation claim, there are several stages to this process.

Document the defect

Record exactly what the issue is, when you discovered it, and how it affects the property. Take dated photographs and videos, keep notes of conversations, and preserve invoices or quotes for any urgent repairs.

The aim is to show that the problem is real, significant, and not merely a matter of buyer’s regret. You may be able to claim for defects related to any of the following areas:

• Damp
• Structural movement
• Flooding
• Boundaries
• Planning permission
• Japanese knotweed
• Alterations

These matters should all be covered by pre-contract enquiries and, as such, any failure to mention them may amount to a problem of disclosure that would entitle you to compensation. However, properties under the UK are sold under the principle of caveat emptor, which means that you are responsible for enquiring about the condition of the property. As such, negligence can only be alleged in cases where the other party was asked directly but did not provide the necessary information.

Gather evidence

Collect together evidence such as the seller's property information form, replies to enquiries, contract, searches, survey, estate agent particulars, and any seller disclosures. The TA6 asks the seller to provide information about the property, and inaccurate or incomplete answers can be central to a misrepresentation claim.

You should usually obtain an independent surveyor’s or specialist report. This should identify the defect, likely cause, likely duration, repair cost, and whether the seller would have known about it before completion. That last point can be important because a claim usually turns on whether there was a false or misleading statement that induced the buyer to proceed. The team at JMW can help you to secure a report from a surveyor through our years of professional experience in this area.

Instruct a solicitor

Even if you have not gathered all of the necessary evidence, speak to a solicitor at your earliest opportunity. The team at JMW can assess whether the facts support misrepresentation, breach of contract, negligence by conveyancers or surveyors, or no viable claim.

This matters because not every undisclosed problem is actionable. Property purchases still involve the principle of buyer beware, so silence alone may not be enough unless the seller gave a misleading answer or failed to correct a previous answer that had become inaccurate. Our property solicitors will also consider limitation periods, evidence, likely damages, and whether rescission is realistic, to advise you of the likely outcomes based on your specific legal position

Gather supporting correspondence

Correspondence with the seller or their estate agent during the sale process will often be the source of any misrepresentation, which is central to a property misrepresentation case. Examine any emails, letters, WhatsApp messages, viewing notes, and records of phone calls with the seller, their estate agent or their solicitor. Anything that shows what the seller, agent, or solicitor said before exchange and completion may prove that the seller lied or withheld crucial information. However, even an innocent misrepresentation of the facts can entitle you to claim damages or take action.

Prepare a formal claim

Your solicitor will prepare a formal letter of claim setting out the nature of any false or misleading statements, along with where it was made (whether in the TA6 or replies to enquiries, for example) and why it was untrue or incomplete. The letter will then explain how you relied on the information when buying the property and the loss suffered as a result, which may include repair costs, diminution in value, or other expenses. Finally, it will state the remedy you are seeking, whether that means damages or, in rare cases, rescission. The claim will be supported by documents, expert evidence, and a clear calculation of loss, all of which will be attached to the letter as evidence for the seller's solicitor to consider.

Negotiate or litigate

Many claims can be resolved through negotiation. Mediation or without-prejudice settlement discussions may follow, depending on whether the seller accepts that there was negligent misrepresentation of the property's condition. The seller may deny knowledge, dispute the meaning of the TA6 answer, argue that the buyer should have discovered the issue, or challenge the amount claimed. In these cases, the buyer may issue court proceedings.

JMW will represent you in court proceedings, outline the evidence to the court and work towards the best possible outcome. The court will consider whether there was a misrepresentation, whether the buyer relied on it, whether loss was caused, and what remedy is appropriate. Compensation is more common than unwinding the sale, but the outcome depends heavily on the facts and evidence.

Are There Time Limits for a Property Misrepresentation Claim?

In England and Wales, the usual time limit for a property misrepresentation claim is six years, but the exact start date and any extensions available depend on the type of claim. This is established by law under the Limitation Act 1980.

For most property misrepresentation claims, the practical rule is that you usually have six years from the date of the transaction, often treated as the exchange of contracts (from which point the buyer is legally bound to buy the property) or completion (when the buyer becomes the property's legal owner), depending on the nature of the claim.

If the misrepresentation involved fraud or concealment, limitation may be postponed until the buyer discovered the fraud, or could with reasonable diligence have discovered it. This can matter where the defect was hidden and only emerged later, and means that a claim may be made outside the initial six year period from when you purchase the property.

With that said, delay is risky in cases where you are seeking rescission, even within the time limit, and this route may be barred if the buyer waits too long or affirms the contract, if third-party rights intervene, or in cases where it would be impossible to restore the parties substantially to their pre-contract position.

As such, you should act as soon as you discover the issue to preserve evidence, obtain a surveyor’s report, and speak to a solicitor to confirm the exact limitation date and start the legal process.

What You Must Prove

There are several elements that you must prove to be able to claim damages or have the contract reversed due to a potential misrepresentation. These are as follows:

1. A false statement was made

You need to show the seller made a false statement of fact or law, which may not include sales talk or expressions of opinion. In property claims, it is often found in the TA6 form, replies to enquiries, emails, estate agent statements, or other pre-contract correspondence.

The statement must be "material", which means that it is important enough that it would reasonably matter to a buyer. A trivial error or minor concern that a seller failed to mention is unlikely to justify a substantial claim.

Another key question is whether the statement was false at the time the contract was made. If a seller’s answer was true when first given but became false before exchange, and they failed to correct it, this can amount to misrepresentation.

2. You relied on the false statement

You need to show the statement at least partly induced you to buy the property, or to buy it at the price you paid. It does not usually have to be the only reason you proceeded, but you must show that it was a real factor in your decision.

3. You suffered loss as a result

For damages or compensation, you must show financial loss caused by the misrepresentation. This may include repair costs, reduced property value, professional fees, alternative accommodation, or other directly connected losses.

Under section 2(1) of the Misrepresentation Act 1967, where a buyer entered into a contract after a misrepresentation and suffered loss, the seller can be liable unless they prove they had reasonable grounds to believe the statement was true.

If you wish for rescission (which means that you are asking to undo the contract, return the property and get the purchase price back), you usually need to show the misrepresentation induced the purchase and that it is still practically possible and fair to unwind the transaction.

The court can also award damages instead of rescission for non-fraudulent misrepresentation where it considers that equitable.

The Role of Consumer Protection

Consumer protection laws safeguard potential buyers against unfair practices. In the UK, these regulations are robust in ensuring that the buyer's interests are well-protected.

The Consumer Protection from Unfair Trading Regulations 2008, for instance, requires that sellers and their estate agents do not engage in unfair practices. These practices include giving misleading information or failing to provide important information about the property. The estate agent, as the professional in the transaction, carries the onus to disclose pertinent information that affects the buyer's decision-making process. This includes information that they have gathered themselves or that has been provided by the seller.

These laws are designed to prevent the buyer from being misled by the seller or the estate agent. For example, if there is significant construction planned nearby that could impact the property's value or enjoyment, this should be disclosed. The same applies if there are known plans for development within the area that could affect the property.

By enforcing these consumer protection measures, buyers are less likely to encounter unpleasant surprises after completing their purchase. Should a buyer find that they have been misled or that critical information was omitted, they may have legal recourse. This could involve reporting the matter to Trading Standards, seeking redress through the courts, or potentially unwinding the sale in severe cases of misrepresentation.