Misrepresentation, misstatement and non-disclosure in property matters

Published by a ÀÏ˾»úÎçÒ¹¸£Àû Property Disputes expert
Practice notes

Misrepresentation, misstatement and non-disclosure in property matters

Published by a ÀÏ˾»úÎçÒ¹¸£Àû Property Disputes expert

Practice notes
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This Practice Note looks at misrepresentation, misstatement and non-disclosure in property transactions. It covers a seller’s liability for replies given to enquiries before contract, a buyer’s possible remedies for non-disclosure, misrepresentation and misstatement and contractual terms which may protect the seller in the event of a claim.

What is misrepresentation?

A misrepresentation is a false statement of fact made by one party to another, which is not a term of the contract but induces the other party to enter into the contract. The misrepresentation must have been material and must have been relied on.

If a seller makes a false statement in replies to enquiries (or elsewhere) which the buyer relies on when deciding whether or not to enter into the contract and the buyer suffers loss as a result of entering into the contract, the seller will be liable for misrepresentation.

It is not necessary to show the misrepresentation was the sole point relied upon when the buyer entered into the contract, as liability can arise even if the misrepresented information forms only

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Jurisdiction(s):
United Kingdom
Key definition:
Non-disclosure definition
What does Non-disclosure mean?

The failure by an insured to declare a material fact, which would have affected the insurer’s ability to assess the risk, the terms of the policy and/or premium charged.

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