By Isle of Wight Observer
With the recent news that Britain’s most senior surveyor has been suspended as President of the Royal Institution of Chartered Surveyors (RICS), amid an investigation into his role in a legal battle over the sale of a £32 million moth-ridden mansion, it’s a reminder to sellers that the must make full disclosure of all relevant matters to the incoming buyers.
This story begins in May 2019, when William Woodward-Fisher sold a property in west London to buyers Iya Patarkatsishvili and Yevhen Hunyak for a cool £32 1/2m.
Shortly after moving in the buyers noticed moths in wine glasses, on toothbrushes and in their clothes, some of which were ruined and had to be thrown away.
The buyers successfully sued Mr Woodward-Fisher on the basis he made ‘fraudulent misrepresentations’ when he claimed he did not know of any vermin infestation or of any hidden defect in the property. It came to light after the sale that the insulation at the property was affected by a serious moth infestation, which the seller was aware of prior to sale as he had received reports from at least two pest control companies. The seller said he had been told the moths were not vermin.
Mr Justice Fancourt found that the buyers should receive repayment of the significant £32 1/2m purchase price plus ‘substantial damages’, which covered the majority of the other losses they had incurred.
This case, coupled with the new NTSELAT guidance (which provides clarification on the extent of Material Information estate agents are required to provide when marketing a property) should be taken as a stark warning for anyone selling a property that the duty of accurate disclosure rests firmly with them.
These developments are causing many in the property industry to query just how much further the age-old contract law principle of ‘caveat emptor’ or ‘let the buyer beware’ is likely to be eroded.
If you would like Biscoes to assist with your sale and provide guidance about the extent of disclosure required, please contact a member of our Residential Property team on 01983 533938.