The conveyancing process balances caveat emptor (buyer beware) with a seller’s strict duty to provide accurate pre-contractual information. The High Court’s recent decision in Patarkatsishvili v Woodward-Fisher serves as a stark reminder of the severe legal and financial consequences when sellers fail to disclose material facts.
Written by Surveyn Hoh, Senior Conveyancing Paralegal
The Facts and Judgment
The case involved the £32.5 million sale of a prime London property. After completion, the buyers discovered a severe moth infestation that had heavily compromised the home’s natural wool insulation. Crucially, the seller knew about this pest issue but failed to disclose it on the Law Society Property Information Form (TA6).
The buyers subsequently sued for fraudulent misrepresentation. While caveat emptor requires buyers to investigate a property’s physical condition, this principle does not protect sellers who provide false answers to direct enquiries. By omitting the truth on the TA6 form, the seller induced the buyers into the contract under false pretenses.
The court ruled unequivocally in favour of the buyers, awarding the equitable remedy of rescission. This required the seller to repurchase the property for the full £32.5 million and pay substantial damages to cover the buyers’ legal and associated transaction costs.
Practical Implications
This ruling reinforces critical, non-negotiable duties for both parties in residential conveyancing:
For Sellers
- Absolute Accuracy: The TA6 form is a legally binding document. Sellers must answer all questions completely and honestly.
- The Ongoing Duty: If a new issue arises between completing the property forms and the final completion date, sellers are legally obligated to update the buyer.
- Severe Penalties: Deliberate non-disclosure can lead to rescission, forcing the seller to completely unwind the transaction and bear heavy financial penalties.
For Buyers
- Scrutinise the Paperwork: Vague or evasive answers on a TA6 form should immediately prompt formal follow-up enquiries from your solicitor.
- Robust Due Diligence: While the law protects against outright lies, enforcing these remedies in the High Court is incredibly costly. Comprehensive structural and specialist surveys remain the best frontline defence.
Ultimately, Patarkatsishvili v Woodward-Fisher reiterates that full disclosure during pre-contractual enquiries remains the only reliable way to ensure a secure transaction.
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