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Misrepresented Property

Misrepresented Property Lawyers

Buying a house is one of the most significant financial decisions you’ll make whether it’s your dream home or an investment property. But what happens when the property you’ve set your sights on turns out to have been misrepresented? 

Misrepresentation in property transactions happens when false or misleading information is provided about a property, leading you to make decisions based on incorrect or incomplete details. 

This can include false descriptions, undisclosed issues, misleading photographs, or false claims about the property’s value, location benefits, or potential for future development.

Discovering that a property doesn’t meet the promises made by sellers or agents can be a shocking, frustrating, and expensive experience. At Lawhive, our mission is to provide expert legal support to protect your rights and resolve disputes efficiently and affordably.

• What is property misrepresentation?

• What types of misrepresentation can occur in property transactions?

• What are the legal obligations of sellers and agents to disclose property information?

• What are my legal rights if I discover that a property was misrepresented?

• How do I address property misrepresentation with a seller or estate agent?

• Can I sue an estate agent for misrepresentation?

• What evidence do I need to support a claim of property misrepresentation?

• Can I cancel a property purchase if it was misrepresented?

• How long do I have to file a claim for property misrepresentation?

• What role does a solicitor play in resolving property misrepresentation disputes?

• What are the potential outcomes of a property misrepresentation claim?

• Can I claim damages for distress or inconvenience caused by property misrepresentation?

• How does misrepresentation affect the value of a property?

• What are the common defenses against a property misrepresentation claim?

Our network of experienced property lawyers is on hand to handle misrepresented property cases at a fraction of the cost of traditional firms, providing you with clear, actionable advice to help you understand your rights and the best steps to take. 

Contact us to schedule a free case evaluation with our Legal Assessment Specialists and find out how we can help you protect your rights and secure a fair resolution with the help of a specialist lawyer. 

What is property misrepresentation? 

Property misrepresentation occurs when false, misleading, or incomplete information about a property is provided to a buyer or renter during a transaction. 

In the UK, property misrepresentation is a serious issue, and the law provides remedies to protect buyers and renters from being misled. 

What types of misrepresentation can occur in property transactions?

In the UK, there are three main types of misrepresentation: 

1. Fraudulent misrepresentation

2. Negligent misrepresentation 

3. Innocent misrepresentation. 

Fraudulent misrepresentation 

This type of property misrepresentation happens when a seller, landlord, or agent knowingly gives false information or deliberately hides important information about the property with the intent to deceive the buyer or renter. 

For example, if a seller knows about severe foundation issues but covers them up and falsely claims that the property is in excellent condition or asserts that there is planning permission for an extension or development when there isn’t. 

Negligent misrepresentation 

Negligent property misrepresentation happens when false information is provided carelessly or without reasonable grounds for believing it is true. 

In negligent misrepresentation, there is no intention to deceive, but the party has no reasonable basis to believe their statement is true. For example, if an estate agent lists a property as having three bedrooms without checking that one of the rooms legally qualifies as a bedroom due to its size. 

This type of property misrepresentation often involves professionals like estate agents who fail to exercise reasonable care in their statements or documentation. This counts as professional negligence. 

Innocent misrepresentation 

Innocent misrepresentation happens when false information is provided without knowing it is false and without any intent to mislead. 

For example, if a seller honestly believes a property has a certain utility feature based on outdated or incorrect information. Or they claim that the property’s roof was replaced recently based on the previous owners’ statements when it was only repaired. 

What are the legal obligations of sellers and agents to disclose property information?

Sellers and agents must disclose all material facts that a buyer or renter would reasonably expect to know before making a decision. 

Material facts include any information that could affect the property's value, condition, or suitability for the intended purpose.

They must not provide misleading information or create a false impression about the property’s features, condition, or legal status. 

Further, all advertising and promotional materials must accurately reflect the property’s true state and not omit critical information.

Required disclosures include those related to: 

• Structural issues like subsidence, dampness, or significant repairs needed; 

• Legal restrictions on the property, such as planning permissions, covenants, or easements; 

• Environmental factors like flood risks, noise pollution, or proximity to hazardous sites.

• Oustanding debts, registered charges, or liabilities tied to the property. 

If a seller or agent realises that a previous statement about a property was incorrect, they must correct this information promptly.

Estate agents must also disclose any personal interest in a property transaction, such as if they or their relatives are buying or selling the property.

What are my legal rights if I discover that a property was misrepresented?

The Misrepresentation Act 1967 allows buyers and renters to rescind contracts or claim damages for misrepresentation. 

Therefore, if you discover that a property was misrepresented you can:

1. Rescind (cancel) the contract

2. Claim compensation for the losses suffered due to the misrepresentation

3. Seek rectification of the contract to correct the misrepresented terms

4. Get a court order requiring the party who misrepresented the property to fulfill their contractual obligations as originally agreed.

How do I address property misrepresentation with a seller or estate agent?

To address property misrepresentation with a seller or agent, contact them in writing and clearly describe how the property was misrepresented and outline what you expect as a resolution. 

If you can’t reach an agreement through direct communication or negotiation, seek advice from a property solicitor. 

Your solicitor can help you file a claim in court to seek remedies such as rescission of the contract, damages, or specific performance. 

Can I sue an estate agent for misrepresentation?

You can sue an estate agent for misrepresentation if you were misled by their actions or statements about a property. 

In the UK, estate agents must provide accurate and honest information to potential buyers and renters. If they fail to meet this duty and you suffer financial loss or other damages, you may have grounds for a legal claim under the Consumer Protection from Unfair Trading Regulations 2008, the Misrepresentation Act 1967, negligence under common law, or breach of fiduciary duty.

What evidence do I need to support a claim of property misrepresentation?

The following evidence can help demonstrate how a property was misrepresented and the impact it has had on you: 

• Property listings and ads 

• Sales or rental descriptions 

• Photos, videos, or virtual tours used to market the property

• Correspondence with the seller, agent, or landlord

• Sale or lease agreements 

• Professional surveys, structural reports, or condition assessments

• Results from inspections or professional assessments that reveal issues not disclosed by the seller or the agent

• Seller disclosure forms

• Independent property valuations 

• Photos of the property as it currently stands

• Receipts, invoices, and payment records for any repairs, inspections, or additional expenses. 

At Lawhive, our expert property lawyers are here to assist you in gathering and presenting the necessary evidence for your misrepresentation claim. Contact us today for a free case evaluation and to see how we can support you. 

Can I cancel a property purchase if it was misrepresented?

If you buy a property and discover it has been misrepresented, you may have the legal right to cancel the transaction. This is called rescission, a process that allows you to undo the contract and go back to your pre-contractual position as if the purchase never happened. 

Rescission is applicable when misrepresentation is significant enough to have influenced your decision to purchase the property.

However, this might not be possible if the property has been significantly altered or if returning the property is impractical. In such cases, seeking damages may be a more appropriate remedy. 

How long do I have to file a claim for property misrepresentation?

For property misrepresentation claims in the UK, the standard limitation period is generally six years from discovering the misrepresentation. 

In cases of fraudulent misrepresentation, the limitation period begins from the date you discover the fraud, potentially extending the timeframe. 

What role does a solicitor play in resolving property misrepresentation disputes?

A solicitor can help you identify whether property misrepresentation was fraudulent, negligent, or innocent and evaluate the impact of the misrepresentation on the value and usability of the property. 

They can also assist in gathering evidence, reviewing contracts and legal documents to identify specific breaches of contract due to misrepresentation, and clarifying each party's obligations.

As well as helping you understand your legal rights and position, solicitors communicate and negotiate with the other party to reach a fair settlement or help you file a legal claim if you take the matter to court. 

What are the potential outcomes of a misrepresented property claim?

When you pursue a claim for property misrepresentation, several possible outcomes can arise, depending on the nature of the misrepresentation and the resolution path you take. 

The goal is to address the misrepresentation effectively and obtain a fair remedy.

Here are the potential outcomes of a misrepresented property claim:

Can I claim damages for distress or inconvenience caused by property misrepresentation?

You may be able to claim damages for distress or inconvenience caused by misrepresentation, however, these damages are generally harder to prove and only awarded under specific circumstances. 

You should consult a solicitor to help quantify and substantiate your claim for distress and inconvenience. They can provide insights into what has been awarded in similar cases and guide you through the process.

How does misrepresentation affect the value of a property?

Overstated property condition

When a property’s condition is misrepresented, it can lead buyers to pay more than the property’s actual worth. For example, if a property is falsely advertised as being in excellent condition but actually requires significant repairs, the buyer may overpay based on the misrepresented condition.

Undisclosed legal issues

Legal issues such as boundary disputes, zoning restrictions, or lack of planning permissions can significantly decrease a property’s value.

These problems can make the property less desirable or even unusable for the intended purpose.

For example, failing to disclose that certain extensions or alterations were done without proper planning permission can result in devaluation, as buyers might face legal challenges or have to undo the work.

Misleading information about features or amenities 

Misrepresenting features or amenities can create a false perception of value. For example, claiming that a property has access to exclusive amenities, superior finishes, or unique features that it lacks can inflate the perceived market value.

Once the true nature of the features or amenities is revealed, the property may lose its appeal, leading to a decline in value.

What are the common defenses against a property misrepresentation claim?

Common defenses used against property misrepresentation claims include arguments that:

• The information provided was truthful and all material facts were fully disclosed.

• The buyer conducted their own investigation or relied on independent advice, and therefore, did not rely on the alleged misrepresentation.

• The misrepresented fact was not material and did not influence the buyer’s decision to enter into the contract. 

• The buyer knew or should have known about the true state of the property and assumed the risk by proceeding with the purchase.

• The buyer failed to conduct reasonable due diligence or ignored obvious signs of potential issues. 

• Losses were due to other factors unrelated to the alleged misrepresentation.

• They corrected the misrepresented information before the completion of the sale or before the buyer entered into the contract.

• Any misrepresentation was made without intent to deceive and was based on honest mistakes or information believed to be true at the time.

• The claim is time-barred under the Limitation Act 1980. 

Get legal help with property misrepresentation from Lawhive

At Lawhive, our network of property lawyers is on hand to offer expert legal support relating to property misrepresentation. 

Whether you are dealing with misleading information provided during a property purchase, rental, or sale, your lawyer will offer clear, actionable advice on the best steps to take based on your circumstances, whether that involves negotiating with the other party, gathering more evidence, or preparing for legal action. 

From initial consultation to final resolution, we provide comprehensive support throughout the journey for a fraction of the cost of traditional high-street law firms. 

What’s more, our user-friendly online platform makes it easy to connect with your lawyer and manage your case from the comfort of your own home!

Contact us today for a free case evaluation and a no-obligation quote for the services of a specialist property misrepresentation lawyer.