Fire damaged property sold without warning
What happened?
Aisha purchased two properties through a property auction company. After the sale, she found one of the properties had serious fire damage, something that hadn’t been mentioned in the listing.
The main issues
- Undisclosed damage: The first property was advertised as being tenanted, but after the sale, Aisha found it was empty and had extensive fire damage.
- No access before sale: The auction company said they had no keys, so Aisha couldn’t view the property before bidding.
- Missing information: The auction company didn’t verify the seller’s claims and didn’t provide a Home Report. Important material information, like fire damage, was left out.
- Delayed board removal: After buying a second property, Aisha had to wait nine weeks and chase the company multiple times to remove the “For Sale” sign. Other damaged signs were left lying around the shared area.
What the investigation found
The auction company should have done more to check the accuracy of the property listing. Fire damage is considered crucial information and must be disclosed so buyers can make informed decisions. The failure to remove signs promptly also showed poor service.
The outcome
Aisha was awarded £1,500 for the distress and inconvenience caused, mainly due to the undisclosed information about the fire damage.
What we can learn
- Auction companies must ensure key facts, such as serious damage, are made clear in property listings
- Buyers should still carry out checks, but agents have a duty to verify and disclose material information
- Poor after-sale service, like ignoring basic requests, can also lead to complaints
Please note that all names in this case study have been changed to maintain anonymity.