Selling a property with physical problems
Damp, subsidence, knotweed? Kirsty Burnham of NRLA property sales partner Movewise shares advice on how to sell a property with common defects or other problems.
Nobody’s perfect, and that applies to homes as well as people. If you are trying to sell a property, it may be tempting to try to hide any defects that could put off buyers, but this is never a good idea.
The first and most important reason is legal: if the seller fails to disclose problems when asked then the buyer could be entitled to make a compensation claim against them on the grounds of misrepresentation.
Even for less serious issues, honesty is the best policy. Being upfront will lead to a far smoother and faster transaction than having them uncover a problem during a survey, and then dramatically reducing their offer or pulling out altogether, wasting time and money.
Here’s our guide to what you need to disclose to buyers, as well as specific advice for three common problems.
What are my obligations as a seller?
While the seller is legally obliged to disclose “latent” issues with the building title that could not reasonably be discovered by inspection, such as restrictive covenants or easements – this does not apply to physical defects.
However, while there is no obligation for the seller to reveal information about such defects voluntarily, they must answer any enquiries about the property honestly and accurately. In practice, this is simplified by filling in a Property Information Form (TA6). Completing the TA6 is not mandatory, but conveyancing solicitors will generally insist on it, as it simplifies the process and failure to do so will be considered a red flag by buyers.
If the seller gives incorrect information on this form, either deliberately or by failing to disclose information they should reasonably be aware of, then a buyer would be likely to have a claim for misrepresentation.
Problem 1: Damp
The obvious signs of damp are moisture and mould on walls, carpets and furnishings, but these don’t necessarily indicate a fundamental problem with a property. So the first thing to do is find out what is causing the damp, as it could be relatively straightforward to fix.
There are three main causes:
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Condensation Generally the easiest type of damp to fix, it is caused by water vapour in the air condensing on cold surfaces. The fix is reducing the amount of water vapour (eg avoiding drying clothes indoors, and installing dehumidifiers and extractor fans) and removing the cold surfaces (improving heating or adding double glazing).
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Penetrating damp This may be caused by a defect in a wall, roof or chimney, or by a blocked gutter or leaking pipe. This could be a relatively straightforward fix or involve costly major repairs.
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Rising damp The most scary-sounding type of damp problem, this can be very costly to fix. Symptoms include damp and “tide marks” on ground-floor walls, and damage to floors and skirting boards. It is caused by water getting round the damp-proof course (DPC) which is meant to prevent moisture from the ground soaking into the walls. The DPC might not have failed: a simpler cause could be soil piled against the exterior wall above the level of the DPC.
Problem 2: Subsidence
Subsidence problems occur when the ground beneath a property moves, causing the building to shift. This can happen for a number of reasons, including:
- Soil shrinkage
- Erosion
- Tree roots
- Sinkholes or old mine shafts
- Vibration
- Poorly built foundations.
The most obvious symptom is large cracks in walls, especially diagonal cracks across both external and internal walls, but other signs can be floors sinking and doors or windows sticking or failing to fit in their frames properly.
If you suspect subsidence, you will need to call in a surveyor to identify the cause. Remedial work should be covered by buildings insurance (with an excess payable) but it is likely to make it more difficult to get insurance in future.
Problem 3: Japanese knotweed
Japanese knotweed was first introduced to the UK in Victorian times as a garden plant. Nobody realised how invasive it was until it was too late, and since 1981 it has been illegal to plant Japanese knotweed in the wild or allow it to escape from your garden.
The TA6 form asks whether Japanese knotweed is present. Mortgage lenders are unlikely to approve a loan on a property with knotweed until a remediation plan has been put in place. Even infestations on neighbouring properties can affect buyers’ mortgage prospects.
If you suspect knotweed, check a site such as the RHS for identification tips. Specialist firms can provide advice and produce an eradication plan.
Do I need to fix problems before I sell?
Where problems can be resolved relatively quickly and cheaply, our advice would be to get them done before selling. A property that requires work will always appeal to a smaller number of buyers than one which is comparatively problem-free. So if, for example, you can solve a damp problem by improving ventilation and maybe replacing a window or two, it makes sense to go ahead. The money you spend is likely to be repaid in a higher selling price.
Major structural problems, or a serious knotweed infestation, present more of a challenge. In an ideal world they would be fixed before putting the property on the market, but that may not be practical. In such cases, we would recommend at least obtaining a quote for remedial work. This will allow you to present buyers with the solution and tell them what it would cost. Having a figure for repair work in mind will also enable you to manage your expectations for the price you are likely to achieve.
Do I need to tell the buyer if I have already fixed a problem?
Yes, you are obliged to disclose remedial work if a buyer asks: concealing the fact that problems have occurred in the past could also be classed as misrepresentation. In any case, you should ensure that all paperwork, certificates and guarantees covering such work are made available. The TA6 form specifically asks about guarantees or warranties for work such as damp-proofing and underpinning. If you have claimed on buildings insurance to carry out remedial work, this also needs to be disclosed on the form. In the case of Japanese knotweed, the TA6 form asks for details of the management plan in place, along with any specific insurance cover linked to the plan.
Talk to us for more advice
Movewise’s property experts will be happy to discuss the best way to sell a problem property. Get in touch with us today.
