Am I an average consumer?

Blackbeard_of_Perranporth

hachette wrote: »

I am a housewife and last year I bought with my inheritance 2 properties at auction with a tenants as a investment. One of the properties was under Council improvement scheme for about 1 year prior to my purchase. The vendors failed to disclose this information and as a result I had to spend thousands of pounds ( approx £8000) in repairs after receiving council repair order. The vendors are Ltd property company.

I want to take action against them for failing to disclose material information under the CPR 2008 but they claim that I am not a consumer as I have 2 properties let to tenants and therefore this law does not apply to me. Is this correct ?

hachette wrote: »

They did not do searches as I have already entered into contract.

hachette wrote: »

There was no time for survey. I have relied upon what vendors provided in their legal pack. At auction you have to decide quick.

1 OP is a business, not a consumer.
2 Money went to their head

Next time, place money under mattress for 6 months while you explore what to invest in. Watching stupid painting and decorating shows during the day, does not turn you into a property magnate.

bris

hachette wrote: »

Sadly I did not know what I was doing, but there must be a protection for people like me. The vendors were hoping to find somebody like me to buy. They had an estimate for private sale that was 25K over what they put the reserve price for the property at auction. They knew they would never secure private sale with the council repair order on the property.

There is help for people like you, this is why we have specialists to do it for us, they are called solicitors.


Never, ever buy a property without the proper representation that know how to do the searches and read the contracts.

wealdroam

This issue has been rumbling on for some months.

The OP didn't get the answer she wanted from the House Buying board, so tried the Mortgage Free Wannabe board a month or so later.

And here we are now over seven months after the sale, and it looks like the consumer rights board agrees.

Blackbeard_of_Perranporth

Oh wealdroom! Now she hath runneth into BoP!

hollydays

Good luck with your properties , Hachette.Im sure you can get some ongoing advice in future on the " in your home" boards.:)

mo786uk

Couple of issues

1 - it doesn't matter if you are the AVERAGE CONSUEMR - as someone else has explained - the question under the law is whether the practice would affect the average consumer (whose characteristics are defined in the legislation as reasonably well informed, reasonably observant and circumspect). Therefore if it goes to court it is up to the court to decide whetehr what the seller did is likely to affect the average consumer.

2 - the part of the CPUTR 2008 which deals with misleading omisisons does not apply to the part that gives you civil rights. I mention this because 'material information' falls under misleading omission and you cannot use that part - you need to look at misleading action

3- with so many people having 1 or 2 buy to let properties I am not convinced you are a business for sure without further discussion - essentially I think it is something a court would have to decide and infact with so many people owning second homes - what may have been a business 20 years ago in this sector may not be now - it is about your intent.

The CMA have produced some guidance for letting agents which I believe does try and make a disctinction between commercial landlord and some geezer who may rent out a 2nd or 3rd property.

Bottom line is- unless you spend money to take it to court you may never know.

Blackbeard_of_Perranporth

mo786uk wrote: »

3- with so many people having 1 or 2 buy to let properties I am not convinced you are a business for sure without further discussion - essentially I think it is something a court would have to decide and infact with so many people owning second homes - what may have been a business 20 years ago in this sector may not be now - it is about your intent.

The CMA have produced some guidance for letting agents which I believe does try and make a disctinction between commercial landlord and some geezer who may rent out a 2nd or 3rd property.

She has at least fourteen properties. A darn sight more than one or two

hachette wrote: »

I have recently bought a property as an investment that was entered into an auction on 16/7/15. The property did not sell at the auction but after some research I have bought it after auction on 20/7.

I became a new owner on 17/8/15 and recently had a contact from the local council regarding various issues with the property (14 of them inc rising damp) and given 8 weeks to remedy all problems.

It would appear that the previous owners were informed in June 14 that all the properties on that street were under improvement scheme and yet this has not been disclosed to the potential buyers.

The letter with Deficiencies Schedule was sent out to the previous owners on 16/7 (the date of the auction) but as I did not buy it until 20/7 would I have a case against them for failing to disclose key information about the property? Also the fact that they have known for over 1 year about the scheme. I would be grateful for any advice.

naedanger

Blackbeard_of_Perranporth wrote: »

She has at least fourteen properties. A darn sight more than one or two

Says who?

The text you quoted talks about one property with 14 issues with it.

hollydays

In case this makes any difference, to the advice given so far( unlikely) it appears the op did not buy the two properties at auction:

"I have recently bought a property as an investment that was entered into an auction on 16/7/15. The property did not sell at the auction but after some research I have bought it after auction on 20/7."

shaun_from_Africa

mo786uk wrote: »

3- with so many people having 1 or 2 buy to let properties I am not convinced you are a business for sure without further discussion - essentially I think it is something a court would have to decide and infact with so many people owning second homes - what may have been a business 20 years ago in this sector may not be now - it is about your intent.

The CMA have produced some guidance for letting agents which I believe does try and make a disctinction between commercial landlord and some geezer who may rent out a 2nd or 3rd property.

But I would say that the important thing is the fact that the property in question was purchased with the intention of letting it out for an income so I don't see how the OP can be classed as anything but a business.
If they were letting out a property that they already owned and were only letting it out until they could sell it then I might agree with you, but what is the difference between buying property to let out and buying a shop to sell goods to earn money?