Legal Pitfalls to Avoid When Selling a Home

Selling your home is one of the most significant legal and financial transactions many people will make in their lifetimes. At RDC Solicitors, we’ve seen first-hand how even seemingly straightforward sales can become legally complex when overlooked issues arise. To help you avoid pitfalls and proceed with confidence, here are key legal issues you should be aware of when selling a residential property.

Mis-Describing the Property or Title

One of the most common causes of post-sale disputes is when the seller (or their agents) inadvertently mis-describes what’s being sold.

• Ensure the title number, the land registry entries and any restrictions or covenants are accurately disclosed. Your buyer’s solicitors will carry out title checks; discrepancies here can delay or derail completion.
• If any part of the property (outbuildings, shared access, garages, parking spaces) is excluded or treated differently from what the buyer expects, that must be clearly defined in the contract pack and in the sale particulars.
• If part of the land is leased (for example a garden, or a leasehold access way), that must be disclosed. Failing to provide accurate information about title or boundaries may lead to legal claims after the sale for misrepresentation.

Non-Disclosure of Defects, Rights and Services

A seller owes no duty of full disclosure in the same way a company might in a business sale, but in practice buyers’ solicitors will demand full details of things such as the following:

• Whether the property is freehold or leasehold (and if leasehold, length of lease, ground rent, service charges)
• Whether any alterations or extensions have been carried out without the requisite planning permission or building regulation approval
• Whether there are rights of way, maintenance obligations, shared services, rights to light, restrictive covenants or easements benefiting or burdening the property
• Whether statutory notices exist (e.g., for non-compliance, contaminated land, enforcement notices)

If you fail to disclose material matters, a buyer may seek to rescind the contract, refuse to complete or pursue you for damages.

Lack of Planning/Building-Regulation Compliance

If you’ve carried out building works, for example, extensions, loft conversions, change of use, structural works, you must ensure that the appropriate consents were obtained, and any required compliance certificates exist. Unapproved works may cause the following:

• Your buyer’s mortgage lender to refuse funding
• The buyer to ask for a price reduction or put the sale on hold until a retrospective approval is obtained
• Potential liability if a future purchaser brings a claim

Problems with Fixtures, Fittings and Chattels

What is included in the sale may seem like an administrative detail but it’s a legal issue too. Disputes can arise over which items, for example, light fittings, garden sheds, satellite dishes are staying with the property, and which are being removed.

Key steps to take to avoid problems:

• Provide a clear list in the contract schedule of fixtures and fittings that are included or excluded
• Document any items that are leased, for example, solar panels, EV chargers, so the buyer knows what they’re taking on
• Address third-party rights: if you have a leased heating system or other equipment, you must disclose the contract obligations that the buyer is stepping into

Ensuring clarity at the outset helps avoid misunderstandings at completion day or after.

Inadequate Contract Pack and Unclear Title Provisions

A well-prepared contract pack is the backbone of the sale process. As a seller, you must provide a contract which should drafted by your solicitor, supported by all relevant documents including title deeds, leases, service charge statements, planning permissions, etc.

Pitfalls include:

• Omissions of key documents which then delay the buyer’s solicitor raising enquiries
• Ambiguous or incorrect drafting of restrictive covenants, leases or rights of way
• Failing to provide up-to-date replies to the seller’s standard enquiry form

Exchange of Contracts and Deposit Issues

In England and Wales, once contracts have been exchanged the sale becomes legally binding. That moment holds several legal risks for sellers, for example:

• If the buyer pulls out after exchange, they often lose their deposit; but if you (the seller) pull out, you may face a claim for the buyer’s losses
• Make sure that the buyer’s deposit, which is typically 10% of purchase price, is paid and held properly in the contract. Your solicitor should ensure the funds are cleared before signing.
• If the buyer is using a chain (i.e., they are relying on the sale of their own property to complete), the risk of the chain collapsing increases. You may wish to fix the exchange date carefully.

Post-Completion Liabilities and Warranties

Even after completion, legal risk can linger. Some common entities of post-completion liability include:

• Buyer’s claims for misrepresentation if the sale pack or replies to enquiries were inaccurate
• Problems arising from rights of way, boundaries, or shared access which may only become apparent when the buyer uses the property differently
• If you gave any warranties in the contract, for instance about building works or services, you remain liable for those warranties after the sale

Selling a home is more than choosing the right estate agent and staging your property. The quality of your legal adviser can make a huge difference. At RDC Solicitors we always emphasise the importance of a solicitor with experience in vendor-side conveyancing, clear communication channels so you know what’s required and when, and transparent fees and a realistic timescale.

If you’re considering selling your property and would like tailored advice or a review of your contract pack, please contact our property law team on Bingley 01274 723858 or  Ilkley 01943 601173.