Property transactions can be complicated, with a range of problems potentially arising during the process. From miscommunication between parties to issues with property boundaries, these challenges can lead to delays and frustration.
For buyers, sellers, or property professionals navigating these complexities, understanding common disputes, and knowing how to handle them, can make all the difference.
In this guide, we’ll explore typical issues in property transactions and offer practical solutions to resolve them.
1. Boundary Disputes
Boundary disputes are among the most frequent issues in property transactions. Disputes often occur when neighbours disagree over the exact demarcation line between properties. Sometimes, physical markers like fences don’t align with legal boundaries, leading to confusion and conflict.
Start by consulting property deeds and land registry documents. In many cases, these documents provide clear details about boundaries. If clarity is still lacking, consider hiring a surveyor to map out the exact boundary lines. If necessary, mediation between the parties can often lead to an amicable resolution without the need for legal proceedings.
2. Unresolved Planning Permissions or Building Regulations
Buying or selling a property without the correct planning permissions or building regulations can cause significant issues. Buyers might face problems down the line if previous owners made unauthorised modifications to the property.
Prior to purchase, ensure thorough due diligence to confirm all changes meet local council regulations. For sellers, it’s best to resolve any outstanding planning permission issues before putting the property on the market. If permissions or certificates are missing, you may be able to obtain retrospective approval from the local council.
3. Title Deed Issues
Title deed problems, including discrepancies or incomplete records, can delay or halt a transaction. Issues may arise when ownership records are unclear, or there’s an error in the registration details.
An experienced conveyancer can help resolve title deed issues by reviewing and correcting any inconsistencies with the land registry. If additional complexities arise, they may suggest legal action to establish rightful ownership.
4. Issues with Property Chains
Property chains, where multiple transactions are dependent on one another, can lead to frustrating delays. If one transaction falls through, it can cause a ripple effect, impacting other transactions in the chain.
Flexibility and patience are key in dealing with property chains. Consider negotiating a contingency plan with other parties in the chain, such as adjusting move-in dates or renting out the property temporarily. Regular communication between parties helps to manage expectations and keep the process moving.
5. Misrepresentation of Property Information
When details about the property, such as structural issues or previous damage, are misrepresented, disputes can arise. Buyers may discover issues that weren’t disclosed, leading to mistrust and even legal action.
Both buyers and sellers should commit to full transparency. Sellers should disclose all relevant information upfront to avoid future complications. Buyers can conduct surveys and request detailed property reports. If misrepresentation is discovered, legal advice may be necessary to determine whether compensation or contract termination is an option.
6. Disputes Over Fixtures and Fittings
Disagreements over what’s included in the sale can lead to disputes, with buyers and sellers sometimes having different expectations about what fixtures and fittings will remain in the property.
Avoid misunderstandings by listing all items included in the sale within the contract. Clarity at the outset can prevent potential disputes. If disagreements do arise, mediation or negotiation can help find a fair resolution.
7. Survey and Valuation Disputes
Property surveys and valuations often reveal issues that can influence the transaction. Disputes may occur if a property is valued lower than expected or if the survey uncovers costly repairs.
If the valuation or survey results are unexpected, both parties should review and discuss the findings. In some cases, renegotiation of the purchase price may be appropriate. Alternatively, the seller might agree to complete necessary repairs before finalising the transaction.
8. Encumbrances and Restrictions
Certain properties have encumbrances or restrictions, like rights of way or restrictive covenants, which can affect usage. Buyers might find that these limitations aren’t compatible with their intended plans for the property.
Review the title deeds and seek legal advice on any encumbrances before committing to the purchase. If the restrictions are problematic, it may be possible to negotiate with the other parties involved, though this will depend on the specific circumstances.
How to Avoid Disputes in Property Transactions
While these problems are common in property transactions, they’re not inevitable. Here are some tips to prevent conflicts:
- Conduct Thorough Due Diligence: Buyers should thoroughly investigate the property, checking all records and disclosures. Sellers should provide complete, accurate information from the get-go to avoid any surprises.
- Work with Experienced Professionals: Using reputable conveyancers and surveyors can significantly help in the smooth running or any property purchase/sale.
- Clear, Open Communication: Good communication between all parties can help set clear expectations and resolve potential misunderstandings before they escalate.
At Axis Professional, our team of experts are here to guide you through every step of the property transaction, ensuring a smooth and successful process.
Contact us today to discuss how we can support you with your property needs.
