Shaking up property law, a significant £32.5m moth-ridden mansion case has become a warning for sellers.
In a landmark decision, the High Court has reinforced the duty of UK property sellers to provide truthful, complete, and accurate responses to pre-contract enquiries from buyers. The ruling, Iya Patarkatsishvili and Dr Yevhen Hunyak v William Woodward-Fisher [2025] EWHC 265 (Ch), has significant implications for the UK property market, emphasizing the importance of transparency and honesty during the sales process.
The case involved the sale of a £32.5 million Victorian mansion in Notting Hill named Horbury Villa. The mansion was found to have a severe moth infestation, which was not properly disclosed by the seller, William Woodward-Fisher. 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, including £3.7 million for stamp duty and £15,000 for ruined clothing and antique bottles of wine.
Judge Justice Fancourt stated that Woodward-Fisher did not honestly believe the truth of his replies about the moth infestation. This ruling underscores that the traditional "buyer beware" (caveat emptor) legal principle does not exempt sellers from transparency. Sellers must disclose all relevant information about their property, including planning permissions, known defects, and any material facts that might influence the buyer’s decision.
Sellers must not only disclose material facts about the property itself but must also avoid evasive or misleading answers during the contract stage. Failure to fully and honestly respond can lead to claims of misrepresentation, fraud, or negligence with serious legal consequences for sellers.
Tara Jones, a solicitor at Lester Aldridge LLP specializing in property litigation, warns sellers about the potential consequences of failing to disclose known issues. Due diligence responsibilities for buyers have been strengthened, allowing them to challenge misleading or incomplete disclosures more effectively.
In broader context, UK sellers must disclose all relevant information about their property, including planning permissions (approved, refused, or pending), known defects, and any material facts that might influence the buyer’s decision. Although there is no single UK statute mandating full disclosure, these obligations arise from a mix of common law duties (honesty, fairness, good faith) and consumer protection principles. Sellers must complete relevant forms like the Property Information Form (TA6) accurately and provide title deeds and evidence of ownership.
The Building Safety Act 2022 is a focus for Lester Aldridge LLP, specifically regarding landlords' and leaseholders' obligations, including drafting and reviewing deed of certificates. The ruling aligns with a growing trend in property law, where courts are holding sellers accountable for misrepresentations.
The Patarkatsishvili v Woodward-Fisher case significantly underscores that UK property sellers cannot rely on evasiveness or partial disclosure; they must provide clear, honest, and comprehensive information during pre-contract stages to avoid legal exposure. This aligns with existing practice but marks a firm judicial reinforcement of disclosure duties in property transactions. Buyers may become more confident in challenging misleading seller representations, potentially leading to an increase in litigation over property defects in the future.
- Sellers in the UK property market should take caution when providing information about their properties, as the High Court ruling in the case of Iya Patarkatsishvili and Dr Yevhen Hunyak v William Woodward-Fisher has set a precedent for holding sellers accountable for misrepresentations.
- As shown in the Patarkatsishvili v Woodward-Fisher case, sellers must disclose all relevant information about their properties, including planning permissions, known defects, and any material facts that might influence the buyer’s decision, regardless of whether there is a single UK statute mandating full disclosure.
- Sellers should be wary of providing evasive or misleading answers during the contract stage, as failure to fully and honestly respond can lead to claims of misrepresentation, fraud, or negligence with serious legal consequences.
- To ensure compliance with their disclosure duties, UK sellers may consider seeking financial advice for investing in proper insulation, design, and build fixes that would improve their properties and provide accurate information, thus reducing the risk of legal complications.
