Property buyer couldn’t rely on estate agent’s brochure because there was a disclaimer in it
A legal ruling has made it clear that property buyers shouldn’t rely on estate agent’s particulars, especially if they contain a disclaimer.
A potential buyer of commercial premises was given a sales brochure by the estate agent. It said they were 23,057 square feet but that was wrong - in fact they were 1,809 square feet smaller than that. The buyer had a ‘survey of condition’ done, put in a tender for the property based on the incorrect square footage and bought it. He later claimed compensation on the basis he had relied on the brochure and that the agent should have known he would, so it owed him a duty of care to get it right.
There was a disclaimer in the brochure, which said:
“Whilst every care has been taken in the preparation of these particulars, and they are believed to be correct, they are not warranted and intending purchasers/lessees should satisfy themselves as to the correctness of the information given”
The court decided the disclaimer shot down the buyer’s claim. It said the test of what the disclaimer covered was what a reasonable person, in possession of all background information reasonably available to both parties at the time they entered into the contract, would think the words in it meant. Applying this test it said it was ‘clear and unambiguous’ that the agent was not assuming responsibility for the accuracy of the brochure, and could not be expected to predict that the buyer would rely on it when making his offer. The disclaimer was clearly putting the burden back on a buyer to check the accuracy of the information in the brochure, and the buyer could easily have asked his surveyor to measure the premises when carrying out the survey.
Buyers of property shouldn’t rely on statement in estate agent’s particulars, especially if there is a disclaimer. If there is something about a property that is particularly important to them they should either check it themselves or ask the agent or seller to give legally assurances about it.
In contentious business, a solicitor may not calculate fees or other charges as a percentage or proportion of any award or settlement.