Most people know that you have to be honest when you sell your house. What catches people out is just how much you have to disclose about problems with the neighbours. The seller's property information form, the TA6, asks directly whether you have had disputes or complaints involving the property, and that includes neighbour issues. Lie or leave something out, and the buyer can come after you for compensation after the sale completes.
What Counts as a Dispute?
The form asks about "disputes, complaints or issues" which covers a lot of ground. A formal complaint to the council about noise counts. So does a boundary disagreement you wrote to your neighbour about. Even an ongoing issue you have not formally complained about but which has been a persistent problem can arguably fall within scope.
What does not count is the sort of everyday friction that comes with living near other people. If your neighbour's bin sometimes blocks the pavement, that is not a dispute. If you had a polite conversation about their hedge and they trimmed it, that is not a dispute. Use common sense. The test is whether a reasonable buyer would want to know about it.
Does It Show Up on Searches?
Some disputes will show up in the buyer's local authority searches even if you do not mention them. If the council has served a noise abatement notice, taken action over planning breaches, or been involved in antisocial behaviour proceedings, that is on record. If you went to mediation through a community mediation service, that is generally confidential and would not appear. Solicitors' letters between you and your neighbour are private but could surface if the buyer asks the right questions.
What Happens to Your Property Value?
There is no getting around it. A serious ongoing neighbour dispute will reduce what you get for your property. Estimates vary, but estate agents typically say 5 to 15 per cent off the asking price is realistic if there is a documented problem. Buyers are nervous about inheriting someone else's nightmare, and their solicitors will advise them to negotiate hard or walk away.
A resolved dispute is much less damaging. If you can honestly say on the TA6 that there was a problem but it has been dealt with, most buyers will accept that. People understand that neighbours occasionally fall out. It is the unresolved, escalating disputes that kill sales.
What to Do Before You Sell
If you are thinking of selling and you have an ongoing issue with a neighbour, try to resolve it before you go on the market. Mediation is often the fastest route. It is cheap, usually free through your local council's mediation service, and even if it does not fix everything, the fact that you engaged in mediation shows good faith.
If the dispute is more serious, a boundary issue, a planning objection, something involving solicitors, get legal advice before you list. Your conveyancer can help you word the TA6 disclosure in a way that is honest without torpedoing the sale. The worst thing you can do is hide it. Buyers' solicitors are good at finding things, and a seller who has clearly been dishonest on the forms is in a much worse position than one who was upfront about a resolved problem.
Your email won't be published. Comments are moderated before appearing.