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The Big, Expensive, Little Winged Problem
This week, in Patarkatsishvili & Anor v Woodward-Fisher [2025] EWHC 265 (Ch), the danger of non-disclosure and evading replies to pre-contract enquiries has come to haunt a seller when a High Court judge ordered that a couple who bought a moth infested £32.5m mansion could have the majority of their monies returned.
The seller in this case, William Woodward-Fisher, when conducting renovation works had included a wool-based insulation in the walls of his luxury Victorian property in West London. This was quite literally a ‘moth trap’ and the little creatures bred within and infested the insulation, which in turn resulted in Mr Woodward-Fisher’s wife noticing the problem.
Various pest control treatments were undertaken which involved periodic sprays and other such preventive measures resulting in at least two reports from pest control companies in 2018 which stated the need to remove the insulation in order to get rid of the infestation.
The Judgement
The court’s analysis and subsequent judgement was based on three main points which ultimately led to the contract being rescinded.
- The Seller provided false replies. Three replies to the pre-contract enquiries were found to be false. Having been aware of the moth infestation and the pest control companies clearly stating that the problem was in the insulation, the Seller’s reply of ‘not aware’ was not considered to be truthful. It was found that the Seller purposely withheld information when stating that he never had the property surveyed for such a problem. He also stated that he was not aware of any hidden defect in the property.
- The Buyer relied on these replies on the basis that they believed they were true. The Buyer’s lawyers reported to the buyer to state that there was no information within the replies to enquiries which concerned them, which in turn led to the Buyer’s decision to process with the purchase transaction. The Buyers stated that had they known about the infestation, they would not have committed to the purchase.
- The Seller knew that the replies he had provided were false. The Seller was well aware of this issue and was purposefully evasive when providing replies to the pre-contract enquiries that were raised. The Seller was not only negligent, he was fraudulent in his misrepresentation.
The Takeaway
The Buyers only discovered the problem after moving in which turned out to be a nightmare, having found moths in their clothes, glassware, and on their toothbrushes.
Caveat emptor is a phrase which is thrown around a great deal in a property transaction, however, it cannot be used as a license to evade and purposefully mislead.
Replies to enquiries must be answered as true statements which cannot be taken as a simple formality. A buyer should be able to rely on these as correct, accurate representations and would be expected to undertake reasonable inspections and not knock down every wall in the property to ensure that the representations made in the replies are correct.
In this case, there was a clear misrepresentation made by the Seller, and the Buyer had relied on these to ultimately proceed with the purchase.
The judge rules that the statements made by the Seller were ‘fraudulent’ and intentionally false. It was not simply an oversight, it was clear that the Seller did not believe the replies he had given. This is what ultimately turned the case for the Buyers as rescission would be the primary remedy.
Had the Seller simply replied ‘rely on survey’, the court may have had more difficulty in reaching a decision. Indeed, the Law Society’s protocol cautions against solicitors raising enquiries as to the physical condition of properties.
We will have to see if this leads to a different approach in the enquiry process.
If you require conveyancing services, please contact Meera Malde or our wider Residential Real Estate team.
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New Build Conveyancing Timeline: A Buyer’s Guide to Post-Exchange
There are various stages to purchasing a property before it is fully constructed, and collaboration with your solicitor is key to ensure seamless progression with the New Build Conveyancing timeline.
Prior to exchange of contracts, your solicitor negotiates on your behalf and reports to you on the legal documents for your purchase. On the date of exchange, you become legally bound by the contract, and proceed with the following stages until your New Build Property is ready to move into.
Post-Exchange
Immediately following exchange, you should diarise the timescales which are set out in your contract, to ensure you are prepared for each.
Key dates to note include:
- Stage Payments are due on specific dates over the course of months or years leading up to completion.
- Estimated Completion Date when the Developer expects for construction to be concluded, and for legal completion to take place.
- Fixed Completion Date is only applicable in certain situations when construction of the Property is already finished.
- Longstop Date is the final deadline by which completion must take place, or the buyer may terminate the contract and recover their deposit.
Stage Payments
Approximately one month before your stage payment is due, you should contact your solicitor to provide updated source of funds documents, so you may send the stage payment to them.
Solicitors are obligated to complete due diligence checks for each payment towards your purchase. You should provide the documents in plenty of time and highlight any changes in your source of funds to your solicitor as early as possible.
Legal Completion
If you are obtaining mortgage finance, you should begin this process approximately six months before the Estimated Completion Date. Although most mortgage offers are valid for six months, some Lenders may allow up to twelve months for newbuild properties, to accommodate for potential delays.
Once construction is complete and Building Control has given their approval, the developer will give you ten working days to complete the purchase.
It is recommended to inspect the Property in person before completion, to ensure any snagging issues are raised with the Developer.
You will sign your final Lease and Plans which, dependent on the Developer’s preference, may be signed electronically or in ink. Once source of funds checks are complete, you should organise the purchase balance to your solicitor, with any stamp duty and legal fees payable.
You should note that if you do not complete within the 10 working days, the developer will charge you a daily interest at the rate set out in your contract, often 4% above the Base Rate. The developer will also have the right to terminate the contract, keep your deposit and stage payments, and sue you for damages.
Post-Completion
Your solicitor will deal with the payment of Stamp Duty Land Tax and the registration of your lease at the Land Registry. They will also activate your New Build warranty, which remains in effect for ten years following completion. You should keep these documents safe to pass on if you come to sell the Property.
The Land Registry has extended processing timescales for new Leases, which currently average 10 to 18 months. Be assured, once your Land Registry application is submitted, it is “priority protected”. This means your application takes priority over any subsequent applications lodged against the title after yours. Nevertheless, it is not easy to expedite a new lease application as the Land Registry would have to deal with every prior application to yours.
Conclusion
Purchasing a New Build Property is an extensive but gratifying process. Good preparation and communication with your solicitor are vital to achieving the most successful, yet smooth conclusion.
At Quastels, we take a collaborative approach to ensure buyers are included in the process and have a positive experience throughout the stages of the New Build Conveyancing timeline.
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SDLT Savings for Pre-Settled Status Holders in the UK Property Market
For individuals holding pre-settled status under the EU Settlement Scheme, purchasing property in the UK may offer distinct financial advantages, particularly regarding Stamp Duty Land Tax (SDLT).
One of the most significant benefits is the potential to mitigate the additional 2% SDLT surcharge applied to non-UK residents. This exemption can represent substantial savings, particularly in high-value transactions, and provides pre-settled status holders with a financial edge in the competitive UK property market. Unlike other foreign buyers, those with pre-settled status could be treated as UK residents for SDLT purposes provided that they have spent 183 days in the UK in the year before completion. This will assist in reducing overall costs and allowing more capital to be directed towards the purchase or investment. If you don’t quite make up the 183 days before completion, you can claim a refund of the 2% payment if you spend 183 days out of a period of 365 days in the UK in the first year after your completion date.
This advantage, combined with the stability pre-settled status offers in accessing competitive mortgage products and navigating legal requirements, makes it an attractive position for property buyers. However, expert legal advice is essential to ensure eligibility and compliance with SDLT rules, safeguarding these savings while streamlining the purchasing process.
For those with pre-settled status, understanding and leveraging this exemption can be a pivotal step towards securing a future in the UK property market while minimising costs.
If you require immigration advice, please contact Jayesh Jethwa using the form below. If you require residential real estate advice, please contact Meera Malde using the form below.
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