Editor's note: This brief was summarised by The Property AI Newsroom from a report by PropertyWire. Read the original article for full details.
Agent Ordered to Reimburse Survey Costs After Non-Disclosure Ruling
A property agent has been ordered to pay £575 to a buyer after failing to disclose that a property was of non-standard construction, according to a recent case handled by The Property Ombudsman. The case centred on a buyer, identified as James, who withdrew from a transaction after his surveyor identified the construction issue.
James made an offer on a property marketed by the agent, and after the offer was accepted, he instructed a surveyor. The survey revealed that the property was of non-standard construction, leading James to withdraw and complain to the agent. The agent’s marketing materials did not mention the non-standard construction, which James argued was material information that should have been disclosed. He claimed he would not have made an offer or incurred survey costs if he had known earlier.
The agent stated that the non-standard construction 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 Property Ombudsman found that the construction type was material information that should have been made available to an average consumer. The Ombudsman’s investigation determined that features visible in 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 concluded that James could not have been expected to identify the non-standard construction from the marketing information or viewing, nor understand its implications. The fact that the property was later sold did not remove the agent’s responsibility to disclose material information. The agent was directed to pay £575 to reimburse the survey cost, and the Ombudsman noted that James had suffered inconvenience through time spent on a transaction that did not proceed. The agent did not respond to requests for additional information during the investigation.
This case highlights ongoing challenges in the property sector regarding disclosure requirements. The ruling underscores the importance for letting agents and inventory clerks to identify and disclose material information, such as non-standard construction, at the earliest opportunity in property transactions.
Source: PropertyWire