sold a business now being sued for misrepresenation

mummywoo52

Hi
We sold our caravan site last year they did not have a survery done they are now sueing us for misrepresenation saying there were things about the plant?repairs to swimming pools and also Japenese not weed, also right down to the internet connection everything they say is my fault is anyone out there any advise or help as we need it. I think they did not have a survey deliberately so they could sue after.

courtjester

Property is bought 'as seen' - the responsibility for making sure that it is in a suitable condition is the buyers - if they fail to have a survey carried out, they can't complain if they later find that there are problems and defects they were not aware of.

You are not obliged to highlight bad features, defects or problems when selling property, it is up to the buyer to find them out for themselves and satisfy themselves as to the price to be paid for the property in the condition seen.

You would only be responsible for misrepresentation if you provided false or misleading information about the state of the property or answered questions dishonestly.

If you said nothing and they asked nothing, the condition of the property post-sale is down to your buyer.

spunkeyrich

courtjester im not too sure that your right there. I think the law changed a few years ago so that if you knew something onerous about your home you have to reveale it. like if you have subsidence 5 years ago for example, you have to inform a buyer, otherwise you could just plaster over cracks and then blame the buyers for not checking it out.

not sure about the stuff mentioned above though as it seems like those items the buyers should have checked those out. let the buyer beware is a saying but wether that still holds true i am not too sure about.

rich

prudryden

The Jester is correct. I imagine this is beyond the scope of your local small claims county court and you may need to engage your own solicitor. This would not be a do-it-yourself job.

courtjester

spunkeyrich wrote:

courtjester im not too sure that your right there. I think the law changed a few years ago so that if you knew something onerous about your home you have to reveale it. like if you have subsidence 5 years ago for example, you have to inform a buyer, otherwise you could just plaster over cracks and then blame the buyers for not checking it out.

rich

rich, the law on property sales in the UK has not changed, it's still buyer beware. You may be thinking about recent 'Sale of Goods' legislation, but those parts relevant to second-hand goods or property sales are not different. There is no requirement that a property be 'fit for purpose' or of 'merchantable quality' - that only applies to retailers responsibility for new goods.

You HAVE to answer any questions posed about the property honestly and can be sued for misrepresentation if you don't disclose information relevant to a specific question. But if the question is not asked you are NOT obliged to reveal anything about the property, even if you know about defects.

The law in simple terms just states that you must not mislead a buyer.

If you receive a questionnaire from the buyer's solicitor which asks "are you aware of any subsidence history", you must of course declare if you know of subsidence. But unlike an insurance proposal (which requires you to tell the underwriters about anything 'material' to the risk, even if they don't ask), when selling a home (or business) you are not legally obliged to offer any details that are not requested, you can simply stay shtumm. It's the same with estate agents.

Saying "here's my property, do you want to buy it" is not misleading no matter how many problems you may be aware it has.

silvercar

i would pass any mail from your buyers straight to the solicitor who handled your sale. Chances are they are just trying it on and one firmly worded letter from your solicitor will send them packing.

brasso

I'm not a lawyer but I'm pretty sure that it depends on whether you have misrepresented the situation or not. For instance if you told them that the swimming pool was serviced in the last 12 months and it hadn't, you could be liable. But if they never asked, and you never offered, any information about the swimming pool then I can't see that they have a case. It comes down to 'caveat emptor' - "buyer beware".

Nip this in the bud. Go to see a solicitor and get some advice. I suspect that all it will require is a stiffly worded letter.

mummywoo52

Thanks everyone I will seek advice