Property law faces a shake-up following a significant £32.5m mansion sale wherein the buyer is challenging the seller, marking a shift from the traditional 'buyer beware' approach.
In a significant shift for the UK property market, sellers are now legally obligated to disclose all known material facts about a property, following a recent High Court ruling. The case of Iya Patarkatsishvili and Dr Yevhen Hunyak vs. property developer William Woodward-Fisher has set a precedent, emphasizing the importance of truthful and complete information in Property Information Forms (TA6).
The ruling, which hinged on Woodward-Fisher's knowledge of a severe moth infestation requiring major insulation removal in a £32.5 million Victorian mansion in Notting Hill, has changed the game. Sellers can no longer provide misleading or incomplete responses without facing serious financial repercussions.
Tara Jones, Property Litigation Solicitor at Lester Aldridge LLP, warned that failing to disclose known defects can lead to severe financial consequences and a shift in the legal landscape from "buyer beware" to "seller beware." This means that sellers must disclose issues such as structural problems, planning or building regulation issues, environmental matters, disputes, third-party rights, pest infestations, insurance concerns, and any other relevant information, without withholding anything for fear of losing the buyer.
This ruling aligns with a growing trend in property law, where courts are increasingly holding sellers accountable for misrepresentations. Lester Aldridge LLP, a firm specializing in property litigation, has been providing advice on the Building Safety Act 2022, specifically regarding landlords' and leaseholders' obligations, including drafting and reviewing deed of certificates.
The High Court has made it clear that due diligence responsibilities for buyers have been strengthened, allowing them to challenge misleading or incomplete disclosures. This means that buyers can now question information provided by sellers more effectively, ensuring they are making informed decisions.
The damages in this case included £3.7 million for stamp duty and £15,000 for ruined clothing and antique bottles of wine. The High Court ruled in favour of Patarkatsishvili and Hunyak, ordering the developer to refund the purchase price (minus £6 million for use of the property) and pay an additional £4 million in damages.
Judge Justice Fancourt stated that Woodward-Fisher did not honestly believe the truth of his replies. This ruling reinforces that disclosure is a strict legal obligation: sellers cannot conceal defects or other material facts and must complete disclosure forms (such as the Property Information Form, TA6) accurately. Any misinformation or omission can result in legal consequences and compensation claims by buyers.
This framework applies generally to all UK property transactions post this case and is aimed at ensuring transparency and protecting buyers. The disclosure obligations are governed mainly by Consumer Protection Regulations and the Consumer Protection from Unfair Trading Regulations. Recent legal developments reaffirm these duties but do not alter them fundamentally.
This ruling may prompt legal reforms aimed at tightening disclosure laws in high-value property transactions. Tara Jones also suggested that buyers may become more confident in challenging misleading seller representations, potentially leading to an increase in litigation over property defects in the future.
[1] Consumer Protection Regulations: https://www.legislation.gov.uk/uksi/2008/1277/contents/made [2] Consumer Protection from Unfair Trading Regulations: https://www.legislation.gov.uk/uksi/2008/1277/contents/made [3] UK Data Use and Access Act 2025: https://www.legislation.gov.uk/ukpga/2025/33/contents/enacted [4] Building Safety Act 2022: https://www.legislation.gov.uk/ukpga/2022/28/contents/enacted
- Sellers in the UK must now build their disclosures based on truth and completeness, as the High Court ruling in the Patarkatsishvili and Hunyak case has set a precedent for real-estate transactions.
- The ruling underscores the importance of accurate insulation disclosures, as Woodward-Fisher was held accountable for failing to disclose a severe moth infestation in a £32.5 million Victorian mansion.
- Financial institutions, such as banks and investors, should guide their clients about the legal implications of misrepresentations in Property Information Forms (TA6), under the Consumer Protection Regulations and the Consumer Protection from Unfair Trading Regulations.
- The Building Safety Act 2022 presents new investing opportunities for those interested in the property market, particularly regarding landlords' and leaseholders' obligations, but sellers must be mindful of their disclosure obligations lest they face legal consequences.
