What Do You Need To Disclose When Selling A House?

In this article, we will explore what you need to disclose when selling a house in the UK.

Historically, the principle of ‘Caveat Emptor’ (let the buyer beware), governed property transactions in the UK. Under this principle, it was the buyer’s responsibility to investigate and uncover any potential issues that affect the property.

However, since the introduction of the Consumer Protection Against Unfair Trade Regulations in 2008, which made it the responsibility of the seller to disclose anything that may impact the buyer’s decision to purchase, it has become imperative for sellers to be transparent and honest. A failure to do so and disclose important information could lead to prosecution.

While there is no specific statute that comprehensively outlines all the disclosures, various legal frameworks and best practices ensure that sellers must provide the following key disclosures

What to disclose when selling a house:

1. Title Information

Proof of Ownership: The seller must provide evidence that they legally own the property.

Title Defects: Any issues or disputes with the property’s title (e.g. any covenants, rights of way, easements or amendments) must be disclosed.

Restrictive Covenants: Any restrictions on the property’s use, which may limit the buyer’s ability to make certain changes or use the property for specific purposes, should be disclosed.

For example, if there is a covenant not to alter or extended the property, the seller may be put off buying, as they may have had big plans to extend or change the build to create their ideal home.

2. Property Information Form (TA6)

Sellers are required to complete the TA6 form, which is part of the standard conveyancing process. Key disclosures in this form include:

Boundaries: Information on who is responsible for the boundaries (fences, walls) and any disputes.

Disputes with Neighbours: Any ongoing or previous disputes with neighbours must be disclosed.

Alterations and Extensions: Details of any structural changes or improvements, including planning permissions and building regulations compliance.

Utilities and Services: Information about the utilities and services connected to the property (water, gas, electricity).

Flooding: Any history of flooding or issues related to flooding risks.

Environmental Issues: If the property is in a conservation area or has other environmental restrictions (e.g., protected trees).

3. Fittings and Contents Form (TA10)

The seller must provide details regarding what fixtures, fittings, and contents are included in the sale (e.g., appliances, light fittings, curtains).

For example, stating that an item may be left and included in the sale, which is then not left at the property is cause for misrepresentation. A large part of the buyers offer may hinge on all of the white goods being left at the property.

4. Leasehold Properties and the Leasehold Information form (TA7) (if applicable)

If the property is leasehold, additional disclosures include:

Lease Terms: The length of the lease, ground rent, and service charges.

Management Company: Details of any management company involved in the maintenance of the property or communal areas.

Rights of Access: Any rights of access or restrictions on use imposed by the lease.

For example: many lender offers can depend on these points.

5. Property Condition

Latent Defects: While the principle of “caveat emptor” (let the buyer beware) applies, sellers should not conceal significant defects, especially those they are aware of. Misrepresentation could lead to legal liability.

Ongoing Repairs or Maintenance: Any known issues with the property (e.g. roof problems, damp) should be disclosed.

For example: if the roof is known for leaking after a large storm, it is important that the buyer is aware of this and the repairing costs that come with this.

6. Energy Performance Certificate (EPC):

Whilst this is covered in the property information form it is important to note that it is compulsory to provide an EPC to potential buyers. An EPC rates the property’s energy efficiency and provides recommendations for improvement. It is common for an estate agent to assist sellers to arrange this.

7. Planning Permissions and Building Regulation Compliance

Any planning permissions or building regulations that relate to extensions, renovations, or other structural changes must be disclosed, along with certificates of compliance.

Both planning permission and building regulation compliance affects the property rather than the individual that owned the property at the time of the work. Both regimes have their own enforcement period in which action could be taken against the owner for non-compliance. The buyer will need to know if they may be liable.

8. Guarantees and Warranties:

In conjunction with the above sellers must disclose any existing guarantees and warranties that transfer to the new owner, such as warranties for structural work or electrical installations. This helps buyers understand the extent of protection they will have after purchasing the property.

9. Insurance and Insurance Claims

As part of the contract, the seller should be insuring the property up until completion.

Additionally, if the seller has made any insurance claims on the property, particularly for structural damage (e.g., subsidence, flooding etc.), this must be disclosed.

For example: If the property was uninsured in the event of a fire or structural damage, there may be liabilities to pay any outstanding charges/ mortgages.

Many of these disclosures are made through a combination of legal obligations and the standard forms used during the conveyancing process. Misrepresentation or failure to disclose critical information could be severe. Not only could the seller face legal action, but they may also be liable for financial compensation to the buyer. In extreme cases, the sale could be withdrew, causing the seller to lose the buyer and potentially affecting the property’s market value. Therefore, it’s crucial to be as transparent as possible to avoid these pitfalls.

Talk to Tollers

If you are still confused about what needs to be disclosed when selling a house or are concerned about how any disclosures may impact your sale… Talk to Tollers on 01604 258558, our Property teams are here to guide you through the process from the initial negotiation stages to handing over your keys to the new owner.