The High Court of Justice handed down its Judgment on 10 February 2025 in an unusual seller’s property misrepresentation claim. The case of (1) Iya Patarkatsishvili ; (2) Yevhen Hunyak v William Woodward-Fisher [2025] EWHC 265 (Ch) concerned the claimants (buyers) seeking rescission and damages from the defendant (seller) for fraudulent misrepresentation based on a £32.5 million mansion they purchased off the defendant back in May 2019.
The allegation made by the claimants was that the defendant made misrepresentations in pre-contract enquiries which induced them to enter into the contract to purchase the property.
When responding to pre-contract enquiries the defendant failed to disclose the property had a problem with moth infestation which he was aware of in 2018, prior to selling the property to the claimants.
Unfortunately, within days of moving into the property the claimants noticed moths in the property. After several attempts of eradicating the moths, it transpired that a significant infestation was apparent which resulted in very expensive remedial works exceeding £270,000 over the course of several months. This resulted in a significant loss of enjoyment of the property and great inconvenience for the claimants and their children.
One of the pre-contract enquiries asked (inter alia) whether the property had ever been affected by ……vermin infestation. The defendant failed to disclose the fact that he had knowledge of moth infestation at the property as recent as June 2018. The court concluded that infestation of moths included an infestation of vermin in this context and therefore found that the defendants responses to the pre-contract enquiries amounted to fraudulent misrepresentation.
Despite the delays in taking action against the defendant the court ordered that the claimants were entitled to rescission of the property (on the facts) and also awarded substantial damages for the losses they incurred.
This case highlights the importance of ensuring that all answers to pre-contract enquiries are carefully checked and are honestly given. It also highlights the fact that sellers are not able to stand behind the old legal principle of “let the buyer beware”. A failure to provide honest answers to pre-contract enquiries is likely to run the risk of the buyer having to defend expensive and potentially lengthy litigation through the courts. Sellers should therefore seek independent legal advice and provide careful thought before attempting to provide answers which may amount to a misrepresentation even if they consider the answers they provide to be truthful.
If you find yourself in a property misrepresentation dispute our dispute resolution specialists may be able to help. Call us today on 0161 696 6178.
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