New home, new dispute with your lawyer… how to avoid buyer’s regret

Buying a new home is one of the most stressful events a person can go through. Being part of a court action is also up there in terms of potentially difficult experiences. Imagine, then, the stress of buying a new home, and a problem arising resulting in you having to sue your conveyancing lawyers.

This was the situation which resulted in a recent decision of Falkirk Sheriff Court (which the writer is not involved in). The decision related to the purchase of a new home located adjacent to a greenfield site and presumably commanding relaxing views in a quiet setting.

To the shock of the purchasers, they discovered after moving in that there was a proposal to build a housing development on the greenfield site. Doubtless that shock increased when the purchasers then discovered that prior to the purchase, their own solicitors knew of this proposed development but did not tell them. The purchasers sued their solicitors for negligence, arguing that if they had known of the development, they would not have purchased.

Take time to look at all the documents that form part of the contract, warns Patrick Campbell Corcoran

The purchasers' solicitors failed to pass on information contained in the Property Enquiry Certificate. The Property Enquiry Certificate pulls together information from council records, particularly planning and building standards documents. The most recently reported decision focused on the solicitors’ attempt to have the claim dismissed without going to an evidential hearing, which was unsuccessful. As far as can be seen from public court records, the dispute in Falkirk Sheriff Court rumbles on.

While the vast majority of home purchases in Scotland go through smoothly, that court action highlights that problems can and do arise – and when they do the issues can be serious. Aside from planning issues, other disputes that have arisen in the past relating to how solicitors have acted have included not checking the seller’s title properly and a dispute arising about boundaries and access, and disputes about the lack of any building warrants for substantial works.

Many people will view the start of the summer as time for a fresh start and this might involve buying a new home. Before you do so, here are a few practical tips (before you conclude the contract to purchase):

• Have a detailed look at all the documents that form part of the contract, and the documents that your lawyer has sent to you;
• Don't be afraid to ask for a detailed discussion with your lawyer to run through things, even if there is pressure to 'do the deal' near the entry date. If you don't understand something, ask;
• Make sure any finance being provided to assist with the purchase of the property has been confirmed and will be available when required;
• Don't send money to anyone unless you have spoken to your lawyer via a telephone number you are certain is correct. Email interception by fraudsters is alarmingly frequent, and if your deposit goes missing the day before purchase, it won't help the stress levels.
• Check your insurance policies to see if you have legal expenses insurance. Many household policies have this tucked away. If in doubt, speak to an insurance expert and see if it is worth getting a stand-alone legal expenses policy (in case something goes wrong with a purchase).

Patrick Campbell Corcoran is a Managing Associate and Solicitor Advocate, Addleshaw Goddard