Buyer Beware – But How Wary Should We Be?
In her latest Timms blog, Trainee Solicitor Leonnie Watson discusses the ‘Buyer Beware’ legal caveat and why it is important….
For most, moving into a new home is supposed to be the start of a new adventure, but for some it can turn into a nightmare. In this blog I will explain what the ‘Buyer Beware’ legal caveat is and why it is important.
What Is ‘Caveat Emptor’?
‘Caveat Emptor’ is Latin for ‘Let The Buyer Beware.’ This applies to all contractual property purchases and essentially puts responsibility on the buyer to carry out inspections to find out if there are physical defects relating to the property and to find out as much as they can about the condition of the property before they buy it or before they commit to buying it.
As lawyers, we are not able to check or advise upon the physical state of repair and condition of the property, so any lawyer acting for the buyer will advise their clients to consider obtaining a survey to be carried out by an experienced surveyor and/or undertake searches.
Are Searches Always Mandatory?
Whilst searches are required if a property is being bought with the aid of a mortgage, they are not mandatory if the buyer is a cash buyer. This is because it will be the buyer’s own funds that will be at risk and not a mortgage lender’s. Lenders ask for searches to protect their investment, so even if a buyer is not required to obtain searches, it is recommended that they do to protect their own investment!
Equally, although it is not a legal requirement to have a survey on a property before buying it, it may be part of a mortgage lender’s requirements, but every mortgage lender is different. Surveys can help avoid expensive and nasty surprises and also provide assurance that any hairline cracks may not necessarily mean that the house is going to fall down.
If any defects are identified in a survey and/or there are matters of note in the searches, the buyer should raise this information with the seller before contracts are exchanged. This can also be beneficial in price negotiations.
Buyers are also encouraged to raise pre-contract enquiries with the seller, who must answer honestly. This limits risk by ensuring the seller discloses all relevant information about the property being sold. Buyers will also find out information about the property from the Fixtures, Fittings and Contents and Property Information Forms. These documents provide certain information about the property in prescribed forms.
So, in short, the more information you have about the property the better!
How Can Timms Help?
If you have any questions regarding this blog or any other conveyancing queries, please feel free to contact me on 01332 364436 or via email at l.watson@timms-law.com. Alternatively, you can visit the conveyancing section of our website here.
April 2022