‘While there is a huge variation in properties at the top end of the market, when it comes to selling one there are several issues that such transactions have in common,’ explains Faye Green, Partner and Head of the Residential Property team with QualitySolicitors Parkinson Wright. ‘Typically, the legal issues are more complex and buyers can be more demanding, so it is important to have the right legal team on your side.’
Faye considers some of the issues when selling a high value property and highlights the lessons to be learned from a recent case where a purchase was undone by the court after a moth infestation was discovered.
Properties may be harder to value if there are few comparable properties on the markets, or their appeal depends on specific features, such as equestrian facilities or an exceptional view.
So far as conveyancing is concerned, the wide variety and unique features make a one size fits all approach unsuitable. Selling a riverside property, for example, may raise questions about the risk of flooding or associated mooring rights. In contrast, buyers of a city centre penthouse may be more concerned about rights of light or a neighbouring development blocking their view. High value properties benefit from a bespoke approach which addresses their individual issues.
Get your home ready for sale
Staging your home can boost its appeal and help you achieve the best possible price. So, tackle any outstanding repairs and touch-ups. Invest in a professional clean, tidy the garden and consider replacing any old-fashioned fittings. Your agent should be able to advise you what to focus on, as buyers of high-end properties often have correspondingly high expectations.
Getting your home ready for sale should not just be about its physical appearance, as you should also prepare the information buyers may want. For example, information about services to the property, compliance with planning permission and building regulations, or warranties for any extensions or installations. These are often requested in precontract enquiries during the conveyancing process. However, buyers in this market may expect upfront disclosure. Discussing this with your conveyancer and collating information early on could minimise delay and let you address any issues proactively.
At the same time, you can ask your conveyancer to do a title audit to identify and remedy any legal issues that otherwise could unnerve a buyer.
Moth lessons – when answering precontract enquiries.
You are not under a general duty to disclose information to the buyer, but there are exceptions. Moreover, responding to the buyer’s precontract enquiries is part of standard conveyancing practice, and your answers must not be misleading. A recent case, Patarkatsishvili and Hunyak v Woodward-Fisher, demonstrates the importance of this.
This case concerned the sale of a £32.5 million property in Notting Hill. After moving in, the buyers discovered a severe moth infestation. Although the seller had received reports from pest controllers during the property’s renovation, he failed to disclose these in his answers to precontract enquiries. Instead, he said that he was not aware of any infestation since the works. The court found this misleading and that he had been reckless with the truth. Accordingly, it found in favour of the buyers who were entitled to undo their purchase and receive compensation from the seller.
If you are aware of something adverse that affects your home, it is important to discuss the specifics with your conveyancer who can help ensure any impact is minimised and that you comply with your legal duties.
Appreciate the need for due diligence
The sale of a very high value property may involve an international buyer, complex funding arrangements, or the use of a corporate structure.
As with any sale, your agent will need to check your buyer’s identity and source of funds, not only to ensure they can afford your property but to comply with anti-money laundering requirements. The issues can be more complex with high-net-worth individuals or international buyers.
Your conveyancer will also need to be sensitive to potential issues and possibly conduct additional checks. For example, they should ensure any overseas buyer can legally enter into the sale agreement and complete the purchase, and that the correct formalities are observed.
Understand your buyer’s special needs
Buyers of high-end properties often have specific requirements. For example, they may want to build a substantial extension or add a roof terrace, or to use your home, or its grounds, for business purposes. This can raise additional issues, depending on the nature of your property. For example, if it is listed, in a conservation area, an area of natural beauty, or subject to agricultural restrictions.
A buyer with ideas to develop the property may suggest a conditional contract or they may try and introduce other requirements into the arrangements. So, your conveyancer will need to understand all aspects of property law, be a good negotiator and able to think strategically.
How we can help
High value sales demand diligence, proactivity, and specialist legal expertise for a tailored service. Our conveyancing team is used to the demands of these types of transaction and so you can be confident your sale is in safe hands.
For further information, please contact Faye Green or a member of the residential property team on 01905 721600 or via email worcester@parkinsonwright.co.uk
This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.