A Shropshire lawyer is warning anyone selling a property to carefully consider their answers to pre-contract queries in the aftermath of a recent case involving an undeclared moth infestation.
Stewart Smith, of Lanyon Bowdler Solicitors, said the case, which saw the sale of a £32.5 million mansion reversed by the High Court, was an important lesson for both property sellers and buyers.
The case centred around the property’s moth-infested wool insulation which the seller did not declare in the pre-contract documentation, instead saying he was not aware of any “vermin” infestation and there were no reports concerning any infestations.
In fact, pest control companies had been trying to eradicate the moths for some time and the seller had received several reports from them.
Stewart said: “Usually where there is a misrepresentation, i.e. the seller has told some fibs to persuade the buyer to purchase the property, the legal remedy is damages in the form of the seller paying some money to the buyer to compensate the buyer for its loss.
“However, in this case the Court ordered ‘rescission’ of the contract, which is less common. The order aims to put the parties back in the position they were in before entering the contract. In this case, the house was returned to the seller to sort out the moth problem, sell the house and then repay most of the purchase price to the buyer.
“Many sellers do not realise that the Court has the power to make this type of order, and believe that if they get caught out telling a ‘white lie’ they will just have to pay damages. This case is a useful reminder that the Court can do more than order damages.
“The other interesting point is that the Court decided the term ‘vermin’ could encompass insects, including moths. Before this case, many property lawyers and clients thought it only covered animals such as rats and mice.
“The seller had said that he was not aware of any vermin infestation, but this was a misrepresentation because they had used pest control companies to try to deal with the moths in the past and they had reported on the problem.
“The final point clients need to be aware of is that the moth infestation was caused by using wool to insulate the house. It was the wool that attracted the moths and provided a source of food for them so they multiplied in number causing the infestation throughout the house.
“It appears that the wool insulation will need to be removed and replaced with a synthetic material to sort out the moth problem, which will be very expensive.
“I would advise that buyers and their surveyors need to check how properties have been insulated and be vigilant when buying a property insulated with wool. Where wool has been used, buyers should obtain advice from an experienced and competent building surveyor.”
For more advice about buying and selling property, contact Lanyon Bowdler Solicitors by visiting the firm’s website at www.lblaw.co.uk
