If you’re ready to put your house on the market and get moving, finding out that your home has an issue that needs disclosing is less than ideal; but this doesn’t mean you won’t be able to sell for a great price. Whether you’re hoping to find a buyer willing to do their own repair work, or you’re planning on making a few repairs of your own before placing it on the market, here’s all you need to know about selling when your home could use some work…
What should be disclosed?
As a seller, it may be tempting to not disclose a serious issue such as subsidence or an ongoing dispute with a neighbour, but the person buying the home will find out eventually, and if the issue presents itself further down the line rather than being disclosed upfront, this could lead to the seller being prosecuted.
Understanding what constitutes a serious issue is important, as sellers who are unaware may not feel inclined to disclose. Some common known issues that need raising include:
- Disputes relating to the property, including its boundaries and borders
- If the property has ever been flooded and details on what caused the flooding
- Any proposals that the seller knows about for property development nearby
- The presence of Japanese Knotweed
- Any unusual terms outside the typical standard applied to your insurance, and any recent claims
- Details of any building works that have been undertaken at the property, including the appropriate certificates confirming they were completed legally, and to the correct standard
Above is not an exhaustive list, so when in doubt, you should always speak to you conveyancing solicitor for advice. Failing to disclose a known issue is a criminal offence, so transparency with your buying party is essential.
How to disclose a known issue
The conveyancer will highlight any known issues, as well as complete a Property Information form (TA6) to provide the buying party with all relevant details.
The TA6 requires the seller to provide extensive details to the buyer, and will act as part of the pre-contract pack to be handed to the buyer’s solicitor. In this form, the seller will need to disclose any and all information relating to matters such as alterations to the property, disputes, planning permissions, property insurance, flooding, energy efficiency, etc. This opens up opportunity for both parties to raise questions, and the best approach is to be open and honest with your buyer.
Can a known issue affect the sale of a property?
As long as the seller is upfront and helpful from the get-go, the right buyer will be able to proceed to the purchase without too many delays. There are many possible issues that will not deter a buyer who is seriously interested in your property, as long as they have been made aware of them as soon as possible.
If your property’s known issue if likely to make selling your home difficult, having any relevant paperwork to hand will put you in good stead should you need it. Depending on the circumstances, for example, if you had Japanese Knotweed removed, potential buyers will need to know what guarantee or warranty can be passed on to their lender. You will also need the help and guidance of an expert property professional to market your home accordingly, so that you are able to find the best possible buyer for a smooth and successful sale.
Get in touch with your local Whitegates branch for more information today!
