Property practitioners are often drawn into disputes when buyers discover latent defects after taking transfer of a property. However, a recent High Court judgment provides welcome clarity on where a property practitioner’s legal responsibilities begin and end.
The court confirmed that a property practitioner’s duty is to disclose material facts that are within their personal knowledge. An agent is not expected to carry out engineering inspections or investigate hidden structural defects unless there are special circumstances indicating that further enquiry is required. Likewise, describing a property as “beautiful” or “stunning” is generally regarded as sales puffery rather than a representation that the property is structurally sound.
For property practitioners, the key takeaway is that while you are not responsible for uncovering every hidden defect, you must disclose any defects or material information that you know about. Failing to do so could expose you to claims for misrepresentation.
The best risk management strategy is to ask sellers detailed questions about the property’s condition, ensure the mandatory disclosure form is completed accurately, keep written records of all disclosures, and avoid making statements that could be interpreted as guarantees regarding the property’s structural condition. Careful documentation and transparent communication remain your strongest protection against future disputes.
