The 4 magic phrases that would prevent a fortune when promoting a home… and what consultants say you MUST inform patrons

Have you ever argued with your neighbour over their music, struggled with weeds in the garden or discovered moths nibbling at your favourite jumper?

If so, you could be left with a huge legal bill and – in the worst case – face financial ruin if you do not inform prospective buyers when you come to sell your home.

Just ask property developer William Woodward-Fisher. Earlier this month, he was ordered by a High Court judge to pay the buyers of his home around £30 million. 

The judge found Mr Woodward-Fisher had given ‘false’ answers by failing ‘honestly to disclose’ a ‘serious infestation of moths’ after the new owners realised the insects had been nesting in wool insulation behind walls and ceilings of the London house.

Mr Woodward-Fisher will have to repay the £32.5 million purchase price of the property – less £6 million as his buyers had lived in the Notting Hill mansion for six years – plus up to £4 million to cover stamp duty costs and damage caused by moths.

While this is an extreme case, a growing number of sellers could be caught out by failing to disclose details when selling their homes in the coming months.

Money Mail investigates why the risk is growing, what sellers must disclose – and the key information buyers should ask for when looking for a new home.

What are the new rules?

The onus is increasingly on the seller to disclose anything that can impact the buyer’s decision to purchase a property – from a faulty boiler to a history of flooding.

Until a few years ago, rules were largely a case of ‘caveat emptor’. The onus was on the buyer to ask questions and do their research – and not on the seller to inform them of every detail about the property upfront.

But that was until the TA6 Property Information Form was introduced two decades ago. Filled in by the seller, it must detail anything that may affect whether someone wants to buy the property.

And the obligation on sellers to disclose is about to get even more arduous as the TA6 form was updated last year from a 12 to a 32-page version.

Lawyers are still allowed to use the older TA6 form alongside the new one. But the Law Society is consulting with solicitors regarding if changes should be made, such as the new forms becoming compulsory.

The additional paperwork is an indication more sellers could be caught out in the future if, as is expected, the Law Society toughens up rules and forces sellers to answer more questions on their homes.

‘There are no excuses,’ says Andrew Garvie, a property lawyer at JMW Solicitors. ‘All must be disclosed – arguments with neighbours, past pest infestations, a shed roof with asbestos, previous problems with Japanese knotweed, flood issues, letters received about potential housing developments – the list goes on.

‘Hide nothing so you can avoid future problems.’

What do you need to disclose?

The TA6 form is sent to the seller’s solicitor by the buyer’s and is legally recquired to be completed before any purchase is agreed.

The longer document is designed to be more robust, making it harder for sellers to claim ignorance when filling in the questions. 

The most common problem sellers fail to disclose is a structural issue, such as cracks in the wall or water damage.

But you should also say if you have been burgled. David

Wootton, of Tollers Solicitors, Northamptonshire, says: ‘When mentioning a burglary, include details of improved security following the break-in. This way something negative can be turned into a positive selling point.’

The conveyancer says even he was caught unawares by a lack of disclosure when buying his own home some years ago.

‘I discovered a pet rabbit buried at the bottom of the garden, which was not disclosed by the seller,’ he says.

‘If you have a small graveyard for pets, especially if it is something large like a horse, it is worth mentioning as a matter of courtesy even though it is not written down in the rules.

‘It should not put off a buyer – but in my case it put me off my Sunday roast as the pet was put inside a plastic bag.’

Disclose if you’ve had any vermin problems, too. Not just rodents, such as rats and mice, but if you have had a problem with pigeons, squirrels, wasps or bats. The potential buyer should also be told about fleas, lice, bed bugs, ants and moths discovered around the home.

Mr Garvie says: ‘If you deny a problem and it is later found you contacted a pest controller, perhaps when the new owner contacts the same firm, it provides ammunition to use against you.’ Rumours over building work in your area are not grounds enough for you to mention this in the TA6, but if you have received a letter about works, declare it.

Flood risks must also be disclosed – even if in the garden.

Reveal it all… even murder

Rack your brains for anything that might put off a buyer.

‘Murder is perhaps one of the most unusual disclosures,’ says Mr Garvie. ‘But if something grizzly has happened inside the property, even if many years ago, it can affect the value of a house because fewer people will want to buy it.’

However, the lawyer draws the line at ghosts as they are deemed ‘subjective’, seeing as not everyone believes they are real.

Rows with your neighbour

A one-off argument with a neighbour need not be mentioned unless it is an ongoing feud, according to consumer lawyer and Money Mail columnist Dean Dunham. 

He says: ‘Try and solve a disagreement with a friendly chat. But if it has been going on for six months or so – and disturbs you at least three or four times a week – it has turned into a dispute that must be mentioned.’

For example, if you hear loud music at night several times a week, even after you have asked for the neighbour to turn it down, it should be disclosed. 

Mr Dunham adds: ‘You must be materially affected by the disturbance.’ Local authorities consider it a statutory nuisance if disturbances happen two or three times a week.

Disputes about boundaries and tree roots causing damage to fencing should always be declared, too.

Four magic words you need to know

Answer ‘not sure’ or ‘not known’ rather than ‘no’ for factors you are less certain about, urges Mr Wootton.

For example, are you absolutely certain there is no Japanese knotweed in the garden – a weed that can eat through concrete and is notoriously hard to get rid of?

You might not think it is on your land but even if there is some in the neighbour’s garden, you could be affected.

‘Provide a wrong answer and the buyer could take you to court, and you’d get trapped in costly litigation lasting years,’ says Mr Wootton.

Similarly, if remedial building work may have been done, but you cannot remember when or exactly what was done because it was so long ago, simply state ‘not known’.

Full disclosure can save you money by avoiding legal challenges – but you should also budget for such problems, as they could knock a percentage off the value of your home.