The recent High Court case involving Iya Patarkatsishvili and Dr Yevhen Hunyak versus William Woodward-Fisher serves as a stark reminder of the age-old adage, "Honesty is the best policy," particularly within the context of conveyancing transactions.
This case has brought to light the essential role that full and truthful disclosure plays in pre-contract enquiries.
Pre-contract enquires are a standard part of the buying process in domestic conveyancing and are designed to provide prospective buyers with all the necessary information they need to make well-informed decisions regarding the purchase of a property.
Sellers are not merely encouraged but are legally obliged to respond to pre-contract enquires truthfully and accurately. Failure to provide honest answers can lead to severe consequences.
Pre-contract enquires typically cover a wide range of topics including planning permissions, building regulations compliance and environmental risks. If circumstances change or new information comes to light—such as structural issues, neighbourhood disputes, or in the case of the above, a pest infestation — the seller must promptly update their responses.
Withholding information may seem like a way to secure a sale, but failure to provide honest answers can lead to disastrous outcomes, including costly legal fees and compensation claims.
In this case, the court emphasised that sellers are legally obligated to respond to these enquiries with complete honesty. In this instance, the sellers' omission of critical information—namely, a moth infestation—demonstrated a clear breach of disclosure.
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