How long are you liable after selling a house in south London?

Selling your home can be a nail-biting business, especially if you’re part of a chain and hoping your sale will go through without a hitch. It might be tempting to hide some of the downsides of your property from potential buyers to get to the finish line.

But this isn’t advisable – especially when it comes to serious or structural defects. Even if completion has happened, sellers can still be liable for faults, for a long time after the home has changed hands.

If you’re looking to sell a property in the south east London areas of Bermondsey, Surrey Quays, Deptford, or Canada Water, and are wondering how long are you liable after selling a house in the UK, we look at when you are responsible and when you’re not, plus a few things you need to consider. 

Are sellers held liable for faults after the property sale?  

The short answer is yes, you could be. Under the Misrepresentation Act 1967, if there is a defect with the property, that impacts on its value, and that you didn’t make known to the buyer before completion, you may find yourself liable. 

Misrepresentation does not apply just to written disclosures, if you or your estate agent verbally mislead prospective buyers during viewings, this is also classed as misrepresentation. For example, if you state that a damp or mould problem has been fixed but it hasn’t, you could be liable for costs to rectify the issue even after the sale.

The defects must be genuine – not a matter of opinion. The sort of things we are talking about include structural faults, significant problems with wiring or plumbing, boundary disputes and other serious issues – infestation by Japanese knotweed would be a good example.

How long are you liable for faults after selling a house in south east London?

How long you are liable after selling a house in the UK will depend on the type of issue and other factors.

The closer to exchange of contracts that a buyer makes a claim, the more likely the defect existed before the sale and the more likely the claim will be successful.

See how liability fo house faults can play out depending upon the way the buyer has been misled, and the varying timescales in which faults might be discovered:

1. Limitations where the buyer has been misled – Where the buyer has been misled, the standard six-year period of liability under the Limitation Act 1980 runs from the date the contracts are exchanged and not the completion date.
2. Where the buyer could not have discovered the issue earlier – In cases where the buyer could not have reasonably discovered the issue, there is a separate “3-year date of knowledge” timeframe which could apply.
3. Stricter rules around fraudulent misinformation – The Limitation Act 1980 Section 32 also stipulates different rules if there has been fraudulent misrepresentation and deliberate concealment. In this scenario, there is no time limit for liability.
4. Discovery of long-term structural defects – Further legislation that defines liability timelines is the Defective Premises Act 1972, which states that liability can extend up to 15 years for structural defects that become apparent a long time after the sale.

What can home sellers be held liable for?

If you are wondering how long you are liable after selling a house in the UK, there are three legal areas to consider. You could be deemed liable by the courts if any of these apply:

1. Misrepresentation

This means giving false or misleading information to the buyer about the property’s condition that encourages them to enter into the sale.

There are three types of misrepresentation:

• Fraudulent misrepresentation – where the seller knowingly gives false information.
• Negligent misrepresentation – where you make misleading statements without knowing whether they are true.
• Innocent misrepresentation – if you make a false statement you believe to be true.

Sellers are liable for all three types of misrepresentation, even innocent misrepresentation.

2. Misdescription

If you misdescribe the property’s size, characteristics or boundary rights, for example you could be liable.

3. Defects in the property

Structural defects to the walls, roof or foundations that make the property unsafe and in need of costly repairs could leave you liable as could so-called ‘functional defects’ to the wiring or plumbing.

4. TA10 fittings and contents form errors

If there are any discrepancies between what is listed on the TA10 form, such as missing items or items that are replaced with inferior alternatives, the buyer can claim against the seller.

5. Legal covenant omissions

In the situation where the seller has incorrectly told the buyer that legal covenants do not exist, the buyer can claim for this when it is discovered. For example, if there are restrictions written into the property deeds such as prohibiting extensions, if the seller misinforms the buyer regarding this, they can be held liable.

What are sellers not liable for after selling a house?

As a seller, you might be worried about future liability claims but if you have been careful not to provide false information, it is unlikely that you will face any future claim.

Sellers will not typically be held liable for the following:

• Changes in the property value following the property sale
• Damage or issues caused by work undertaken by the new owners
• Cosmetic defects including minor scuffs or peeling paint that do not impact the safety or usability of the property
• Any defects that are identified in the survey and the buyer has not taken action at the time

How sellers can protect themselves from liability

The best way to avoid being liable after selling a house in the UK is to be as upfront and honest as possible about the condition of the property. While telling prospective buyers about faults might mean they can negotiate a lower price, this could be a lot less than the cost of any legal action against you, not to mention the stress which this will bring.

1. Disclose known faults  

It’s worth doing this from the outset. If you know there’s a problem with the roof or damp in the walls, get quotes for fixing it. If you don’t want to do the repairs yourself, you will at least have an idea of the cost for negotiating purposes.

2. Enlist appropriate legal expertise  

Get a good conveyancing solicitor with experience of selling homes like yours. Talk to them about any issues with the home and get their advice.

3. Complete the TA6 form thoroughly  

Thee TA6 form is an essential part of the conveyancing process. Make sure you answer all the questions fully and honestly and provide proof, such as guarantees and certificates, for any work completed on the home.

4. Complete the TA10 form accurately

Sellers should ensure that the TA10 fittings and contents form is completed accurately, listing all items and make sure that no items listed on the form are removed from the property when the seller moves out.

5. Getting a pre-sale survey

Sellers may want to consider getting a pre-sale survey completed so that any issues are identified so that they can be disclosed correctly to avoid any risk of misrepresentation.

6. Keeping records of disclosures

Make sure that you keep all records of correspondence and any disclosures that are made during the sales process. This includes email communications and correspondence from estate agents in relation to any defects.

What protections exist for sellers after a sale?

1. The ‘caveat emptor’ principle  

Caveat emptor means let the buyer beware – while sellers can be liable for defects to a property, there is also a responsibility on buyers to carry out due diligence before they make such an important purchase – by having the appropriate homebuyer’s survey for example.

2. The necessity of buyer surveys  

Surveys are an essential part of home buying and it’s important to choose the right one for your type and age of property. If your buyer failed to commission a survey, they may struggle to make a claim against you at a later date.

3. Disclaimers built into the contract  

If you know of a defect with the property and your buyer wishes to go ahead anyway, you could ask your solicitor to build a clause into the contract to demonstrate that they went into the purchase willingly. 

4. Sellers’ liability insurance  

Sellers can take out indemnity insurance to cover them for a claim later on. This is often advised if you’ve had work done on a property but don’t have the necessary documentation to prove it was carried out properly.

5. Third party’s Ombudsman

If a conveyancer or estate agent provides false information to the buyer, the seller may be able to claim against them for professional negligence through an Ombudsman. You can escalate the case to the Legal Ombudsman if the conveyancer was negligent or to the Property Ombudsman if the estate agent was negligent.

Sell your home with confidence

Whether or not there’s problem with your property, we’d be happy to talk further about liability or any other issue concerned with your sale. If you’re looking to sell your home in Bermondsey, Surrey Quays, Deptford, Limehouse, Stepney, London Bridge, Peckham or Canada Water, contact us today for a no-obligation market appraisal and advice about what to do next – from tips to sell your home quickly to a bespoke selling strategy.