Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.

Agent Ordered to Compensate Buyer Over Non-Standard Construction Disclosure

A property agent has been directed by The Property Ombudsman to reimburse a buyer’s survey fee after failing to disclose that a property was of non-standard construction. The Ombudsman found that the agent’s marketing materials did not mention this key detail, resulting in the buyer incurring unnecessary costs.

James, a prospective buyer, made an offer on a property marketed by the agent. After his offer was accepted, James instructed a surveyor, whose report identified that the property was of non-standard construction. James subsequently withdrew from the transaction and complained to the agent, later escalating the matter to The Property Ombudsman.

The agent’s marketing materials did not state that the property was of non-standard construction. James argued that this was material information and that, had he known earlier, he would not have made an offer or paid for a survey. He sought reimbursement of the £575 survey fee. The agent responded that the construction type only became apparent through the survey and that the property did not appear materially different from a standard build. The agent also noted that the property was later sold without issue and declined to reimburse the survey cost.

The Ombudsman found that the construction type was material information that should have been made available to an average consumer. The Ombudsman noted that features visible in the property photographs should have prompted the agent to make further enquiries with the seller and alert prospective buyers to the possibility of non-standard construction. The Ombudsman also found that the agent could not have expected James to identify the construction type or its implications from the marketing information or viewing.

The Ombudsman concluded that the agent failed to provide timely material information, resulting in James’ wasted costs. The agent was directed to pay £575 to reimburse the survey fee. The Ombudsman also noted that James experienced inconvenience due to time spent pursuing a transaction that did not proceed. The case highlights the importance for agents of identifying and disclosing material information, such as non-standard construction, at the earliest opportunity.