Vendors &Estate Agent did not tell me about major works granted to next door?

Cuticuraser

Hi first time here and looking for advice.

I out down an offer for a detached property and my conveyancing solicitor recently came back to me with the searches and what concerned me was that planning permission was granted next door to convert the existing detached property into a pair of semi-detached properties. I should note that the entire street has detached properties and the next door neighbours (recently bought out by a property developer) will be the first to be fully demolished and converted to two houses.

It was granted well before I put down an offer. As well as the nuisance of 12-18 months of construction, I am worried that it could affect the  resale value of my property in future as it will no longer be a property with detached houses on either side.

The estate agent did not inform me of this and I understand they are not obligated to but it certainly would have impacted my buying decision and the offer price as the very least. I have already spent a few thousand on the solicitor and building survey and I'm very annoyed that no one told me earlier.

Am I within my rights to re-negotiate the sale price otherwise I think I will withdraw. 

powerful_Rogue

Cuticuraser said:

Hi first time here and looking for advice.

I out down an offer for a detached property and my conveyancing solicitor recently came back to me with the searches and what concerned me was that planning permission was granted next door to convert the existing detached property into a pair of semi-detached properties. I should note that the entire street has detached properties and the next door neighbours (recently bought out by a property developer) will be the first to be fully demolished and converted to two houses.

It was granted well before I put down an offer. As well as the nuisance of 12-18 months of construction, I am worried that it could affect the  resale value of my property in future as it will no longer be a property with detached houses on either side.

The estate agent did not inform me of this and I understand they are not obligated to but it certainly would have impacted my buying decision and the offer price as the very least. I have already spent a few thousand on the solicitor and building survey and I'm very annoyed that no one told me earlier.

Am I within my rights to re-negotiate the sale price otherwise I think I will withdraw. 

Absolutely. The vendor can either accept, re-negotiate or decline.

Personally I can't see what difference the resale value will be whether it's one detatched or 2 semis next door.

user1977

You can renegotiate the price for any reason or non-reason you like. I very much doubt the development will affect the value of "your" property though.

EssexHebridean

The agent will only have known if the vendor has told them, and I can't think of any reason why that would have happened. 

As for the vendor, they WOULD have known, because they would presumably have had to be notified, but this could have been some time ago and if they had no reason to object then they could simply have forgotten. Have you had the protocol forms through from your solicitor yet? If you have, what does the TA6 have to say - does that mention it?

As an aside for others who may read this later, it is always a good idea to check the local planning department for anything that might prove interesting prior to making an offer on a property you are looking to purchase. Personally I also chose to check weekly throughout the transaction as well just to be sure that nothing was changing. 

Cuticuraser

EssexHebridean said:

The agent will only have known if the vendor has told them, and I can't think of any reason why that would have happened. 

As for the vendor, they WOULD have known, because they would presumably have had to be notified, but this could have been some time ago and if they had no reason to object then they could simply have forgotten. Have you had the protocol forms through from your solicitor yet? If you have, what does the TA6 have to say - does that mention it?

As an aside for others who may read this later, it is always a good idea to check the local planning department for anything that might prove interesting prior to making an offer on a property you are looking to purchase. Personally I also chose to check weekly throughout the transaction as well just to be sure that nothing was changing. 

Hi, sorry can you please explain what the protocols forms are so I can go back to my solicitor?

I have not seen the TA6 form, is this something I should request from my solicitor? I had a quick look online it seems the TA6 form is not legally binding anyway?

user1977

Cuticuraser said:

EssexHebridean said:

The agent will only have known if the vendor has told them, and I can't think of any reason why that would have happened. 

As for the vendor, they WOULD have known, because they would presumably have had to be notified, but this could have been some time ago and if they had no reason to object then they could simply have forgotten. Have you had the protocol forms through from your solicitor yet? If you have, what does the TA6 have to say - does that mention it?

As an aside for others who may read this later, it is always a good idea to check the local planning department for anything that might prove interesting prior to making an offer on a property you are looking to purchase. Personally I also chose to check weekly throughout the transaction as well just to be sure that nothing was changing. 

I had a quick look online it seems the TA6 form is not legally binding anyway?

Where "online" did you see that statement? It is something which is enforceable (the practicalities and economics of doing so may however, as with all legal claims, be another matter). And probably academic if you are still at the negotiating stage anyway rather than after exchange/completion.

Tiglet2

Cuticuraser said:

EssexHebridean said:

The agent will only have known if the vendor has told them, and I can't think of any reason why that would have happened. 

As for the vendor, they WOULD have known, because they would presumably have had to be notified, but this could have been some time ago and if they had no reason to object then they could simply have forgotten. Have you had the protocol forms through from your solicitor yet? If you have, what does the TA6 have to say - does that mention it?

As an aside for others who may read this later, it is always a good idea to check the local planning department for anything that might prove interesting prior to making an offer on a property you are looking to purchase. Personally I also chose to check weekly throughout the transaction as well just to be sure that nothing was changing. 

Hi, sorry can you please explain what the protocols forms are so I can go back to my solicitor?

I have not seen the TA6 form, is this something I should request from my solicitor? I had a quick look online it seems the TA6 form is not legally binding anyway?

Protocol forms = Property Information Form and Fixtures & Contents Form.  You will be sent a copy of each of these by your solicitor.  Sellers have to answer truthfully on these forms and they do form part of the contract.

EssexHebridean

The protocol forms are the TA6 (property information form) Fixtures and fittings form, and in the case of a leasehold property also includes the Leasehold info form. They are all completed by the sellers of the property and then passed to your solicitor via the seller's solicitor - usually as part of the initial contract pack. The TA6 is the key one here as that does ask whether the sellers have received any notices...

3.1 Have any notices or correspondence been received or sent (e.g. from or to a neighbour, council or government department), or any negotiations or discussions taken place, which affect the property or a property nearby? If Yes, please give details: Yes No Enclosed To follow Yes No Yes No Yes No Yes No Law Society Property Information Form Page 5 of 18 © Law Society 2020 TA6 3.2 Is the seller aware of any proposals to develop property or land nearby, or of any proposals to make alterations to buildings nearby? If Yes, please give details:

3.2 Is the seller aware of any proposals to develop property or land nearby, or of any proposals to make alterations to buildings nearby? If Yes, please give details: 

If you already have the copy of the title to the property then check that these forms weren't sent at the same time - as a rule searches aren't instructed until those have been checked, as they could show something which would materially affect someone's wish to proceed.

RHemmings

If the Estate Agent is a member of The Property Ombudsman Service, then they are expected to do due diligence on properties and to inform buyers of information that would be likely to affect their decision to buy. This applies whether or not the EA was told the information by the seller. 

However, I personally think it unlikely that this planning permission for this next-door property would be considered significant enough to be expected to change a buyer's decision to buy. 

I mainly post this because of the mention of the EA not being told of information by the seller and therefore not being able to inform the buyer. This does not get the EA off the hook in all circumstances. 

Given that the OP hasn't yet exchanged, then they are free to adjust their offer as and when they wish. The seller, as mentioned before, may not accept a lower offer, may negotiate further, or accept it. Again, that's their right. 

EssexHebridean

It's well outside of the remit of an estate Agent to be investigating planning applications in the area around properties listed by them RH. Thank goodness too - I can only begin to imagine how many sales would be scuppered by a heavy-footed EA charging in and "helpfully" contacting the council for information about things which really ought to be left well alone! 

Planning applications are considered to be significant though - which is why they are required to be notified by a seller - usually the person best qualified to answer) as part of completing the TA6. 

Cuticuraser

RHemmings said:

If the Estate Agent is a member of The Property Ombudsman Service, then they are expected to do due diligence on properties and to inform buyers of information that would be likely to affect their decision to buy. This applies whether or not the EA was told the information by the seller. 

However, I personally think it unlikely that this planning permission for this next-door property would be considered significant enough to be expected to change a buyer's decision to buy. 

I mainly post this because of the mention of the EA not being told of information by the seller and therefore not being able to inform the buyer. This does not get the EA off the hook in all circumstances. 

Given that the OP hasn't yet exchanged, then they are free to adjust their offer as and when they wish. The seller, as mentioned before, may not accept a lower offer, may negotiate further, or accept it. Again, that's their right. 

Thanks for that. I would disagree with your view that it wont significantly impact the buyers decision. It it was smaller works like a loft extension or rear extension, maybe so, but we are talking a about significant major works here that will last 12-18 months. It may also give me future headaches if the foundations of my property is affected by the next door works.