What Do You Legally Have to Disclose When Selling a House
When you sell a property, you must disclose all known information relating to that property, positive and negative, so that the buyer can make an informed decision as to whether or not they will proceed with their purchase.
In this article, we discuss everything you need to disclose when selling a property.
Do You Have to Disclose Problems When Selling?
You must present the buyer with any information you hold that relates to the property, regardless of whether this information is positive or negative in nature. For example, this disclosure of information may include, where relevant, but not limited to:
- Structural Issues
- Any planning or building regulation issues
- Environmental Issues
- Disputes
- Third party rights
- Formal or informal agreements/ arrangements
- Pest infestation
- Insurance issues
You must not withhold information in fear of the buyer withdrawing as you would be committing an offence and this could result in legal action being taken against you.
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Do You Have to Disclose if Someone Died in Your House?
Consumer Protection Regulations place an obligation on the seller to disclose any material information relating to the property, inclusive of any murder or suicide.
According to a survey from Sell House Fast, 36% of Brits surveyed said they would not buy a property where someone had died. In addition, 44% of participants stated they would have second thoughts about the purchase.
In light of the above, it may be tempting to withhold certain information out of fear of losing your buyer, but it’s imperative that you do not do so as you would be committing an offence and legal action may be taken against you.
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What Happens If You Are Dishonest?
If you provide false information, as with failing to provide information, you would be committing an offence, and this could result in legal action being taken against you.
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What is Caveat Emptor?
Caveat Emptor is Latin for “let the buyer beware”.
The seller is legally required to act with honesty and disclose any information they hold relating to the property. However, the seller would be unable to disclose issues that they are unaware of, for example, unidentified structural issues. It is therefore strongly advised that the buyer obtains a suitable property survey once their offer has been accepted. This could reveal issues that the seller may not be aware of.
If the buyer fails to obtain a survey, or carry out a reasonable inspection of the property, Caveat Emptor would apply to any issues (that the seller was unaware of) that could have been discovered had the buyer carried out the appropriate (and reasonable) investigation.
How is it Different in Scotland?
When it comes to selling a house in Scotland, there are a few differences.
The main difference being the requirement for the seller to organise a Home Report when marketing a Property.
It’s important to note that the Home Report must be made available to the buyer within 9 days of such a request and if the Home Report is not provided within 9 days, the buyer may raise this with Trading Standard.
The Home Report is split into three sections: An Energy Report, a Single Survey and Valuation and a Property Questionnaire.
There are limited circumstances in which the buyer can refuse to provide a Home Report or is not required to do so and a full list of these can be found at: Home Report - mygov.scot.
