Conveyancing Law, Property Auctions, and Hidden Risks

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Disclaimer: This article is for general information purposes only and does not constitute legal, financial, mortgage, surveying, or conveyancing advice. Property transactions can be complex, and readers should seek independent advice from a qualified solicitor, licensed conveyancer, surveyor, mortgage adviser, or financial professional before making decisions regarding the purchase or sale of property.

What Every Home Buyer Should Know

Why buyers should never rely solely on appearances when purchasing a home, particularly at auction, and why greater responsibility should be placed on sellers to disclose property defects, planning issues, and maintenance history.

Property ownership is often described as one of the biggest financial commitments a person will make during their lifetime. Yet despite the significant sums involved, buyers are frequently expected to uncover defects, planning breaches, and structural issues themselves, often at considerable expense.

Conveyancing law provides important protections, but many buyers discover too late that legal ownership of a property does not necessarily guarantee that the property is free from defects, disputes, or hidden liabilities.

This raises an important question: should sellers be legally required to provide more comprehensive information, including surveys, maintenance records, and evidence of planning compliance, before placing a property on the market?

What Is Conveyancing?

Conveyancing is the legal process of transferring ownership of land or property from one person to another.

The process typically involves:

• Property searches
• Reviewing title deeds
• Examining restrictions and covenants
• Investigating planning permissions
• Checking building regulation approvals
• Raising enquiries with the seller
• Exchanging contracts
• Completing the transaction
• Registering ownership with the Land Registry

The purpose of conveyancing is to ensure that the buyer understands exactly what they are purchasing and that there are no hidden legal issues that could affect ownership or future use of the property.

Should Sellers Be Required to Provide Surveys?

In England and Wales, there is generally no legal requirement for a seller to commission a structural survey before marketing a property.

As a result, many buyers pay hundreds or even thousands of pounds for surveys on multiple properties before eventually purchasing one.

Critics argue that this system is inefficient and unfair, particularly for first-time buyers who may already be struggling with deposits, legal fees, and mortgage costs.

A seller-commissioned survey could potentially:

• Reduce wasted expenditure by buyers.
• Identify serious defects before marketing.
• Prevent sales from collapsing later.
• Increase transparency.
• Reduce disputes after completion.

Scotland already operates a system where sellers typically provide a Home Report before marketing a property, demonstrating that greater transparency is possible.

What If There Is No Maintenance History?

One of the most common concerns for buyers is discovering that the seller has little or no documentation relating to the property’s upkeep.

Examples include:

• Missing boiler service records.
• Lack of electrical inspection certificates.
• No roof repair invoices.
• No damp treatment guarantees.
• No evidence of structural repairs.

While the absence of documentation does not automatically mean that problems exist, it may make it difficult for buyers to determine whether maintenance has been carried out properly.

Buyers should proceed cautiously where significant works have allegedly been undertaken but no evidence exists to support those claims.

A surveyor may recommend further specialist inspections before contracts are exchanged.

Property Auctions: Additional Risks for Buyers

Buying at auction can be attractive because properties are often sold quickly and sometimes below market value.

However, auction purchases carry significant risks.

Once the hammer falls, the successful bidder is normally legally bound to complete the purchase.

This means buyers may have very limited opportunities to withdraw if defects are discovered later.

Properties sold at auction may include:

• Repossessions.
• Probate properties.
• Distressed sales.
• Properties requiring extensive renovation.
• Properties affected by legal disputes.
• Properties with title restrictions.

Buyers should always review the auction legal pack before bidding and obtain legal advice wherever possible.

What If the Seller Is in Debt?

A homeowner facing financial difficulties may choose to sell through auction to secure a quick sale.

The buyer may encounter issues such as:

• Charging orders.
• Secured loans.
• Mortgage arrears.
• Restrictions registered against the title.
• Bankruptcy-related issues.

These matters should normally be identified during the conveyancing process and resolved before completion.

However, buyers should ensure their solicitor thoroughly investigates any restrictions appearing on the Land Registry title.

Missing Planning Permission and Building Regulation Records

One of the most significant risks arises when a property has been altered without proper approvals.

Examples include:

Loft Conversions

A loft conversion may appear attractive but could fail to meet building regulations relating to:

• Fire safety.
• Structural support.
• Staircase design.
• Means of escape.

Garage Conversions

Garage conversions are frequently completed without formal approvals.

Potential problems include:

• Inadequate insulation.
• Structural concerns.
• Damp issues.
• Electrical safety defects.

House Extensions

Extensions built without planning permission or building regulation approval may create future legal and financial difficulties.

Mortgage lenders may refuse to lend.

Insurance companies may raise concerns.

Future buyers may be deterred from purchasing the property.

What Could Go Wrong for the Buyer?

If unauthorised works are discovered after purchase, the buyer could potentially face:

• Enforcement action from the local authority.
• Expensive remedial works.
• Reduced property value.
• Difficulty obtaining insurance.
• Mortgage complications.
• Challenges when selling the property later.

Although local authority enforcement powers are often subject to time limits, each case depends on its specific facts and should be investigated carefully.

What Is an Indemnity Insurance Policy?

Indemnity insurance is commonly used where planning permission or building regulation paperwork cannot be located.

The policy is designed to provide financial protection if enforcement action arises from the missing documentation.

However, buyers should understand that indemnity insurance does not:

• Correct defective building work.
• Confirm structural safety.
• Guarantee compliance.
• Replace a survey.

It simply provides a level of financial protection against certain risks.

Who Should Pay for Indemnity Insurance?

There is no absolute legal rule.

In practice:

• Sellers often agree to pay for indemnity insurance where documentation is missing.
• Buyers may sometimes pay if they are keen to proceed quickly.
• Negotiations frequently form part of the conveyancing process.

Many buyers argue that if the seller cannot provide evidence of compliance, it is reasonable for the seller to bear the cost of any indemnity policy required to facilitate the sale.

Legal Protections for Buyers

Several legal principles help protect buyers during property transactions.

These include:

Property Information Forms

Sellers are generally required to answer questions honestly.

Providing false or misleading information may result in legal claims after completion.

Misrepresentation

If a seller knowingly or negligently provides inaccurate information that influences the buyer’s decision, the buyer may have grounds for legal action.

Consumer Protection Principles

Although residential property transactions operate differently from ordinary consumer purchases, sellers, estate agents, and professionals involved in the transaction still have obligations regarding honesty and disclosure.

Professional Negligence

Surveyors, solicitors, and conveyancers may be liable if they fail to exercise reasonable skill and care when carrying out their professional duties.

The current system effectively places much of the financial risk on the buyer. A purchaser may spend hundreds or even thousands of pounds on surveys, legal searches, mortgage valuations, and specialist inspections, only to discover that the property has structural defects, planning irregularities, or other issues that cause the sale to collapse.

A strong argument can be made that a homeowner should not be able to market a property without first providing:

• A structural survey or condition report.
• Evidence of planning permissions.
• Building regulation completion certificates.
• Electrical safety documentation.
• Boiler service history.
• Guarantees and warranties.
• Information on disputes with neighbours.
• Details of flooding, subsidence, or structural movement.

This would shift the burden towards transparency and enable buyers to make informed decisions before investing significant amounts of money.

However, opponents of mandatory surveys argue that:

• It would increase the cost of selling a property.
• Elderly or vulnerable homeowners may struggle to afford reports.
• Survey reports are opinions, and different surveyors may reach different conclusions.
• The housing market could slow down if additional requirements were imposed.

Scotland’s Home Report system is often cited as an example of a more transparent approach because sellers generally provide information before a property is marketed.

As for fines, there is certainly a policy argument that governments could require a “Property Information Pack” before a property can be advertised, with penalties for non-compliance. A system similar to vehicle MOT certificates could be introduced, where a property must have a valid condition report before being sold.

One proposal that many first-time buyers would likely support is a legal requirement that if a seller cannot produce evidence of planning permission, building regulations approval, or completion certificates for alterations they carried out, the seller should automatically bear the cost of any indemnity insurance required by the buyer. That would place responsibility on the person who created the uncertainty rather than the purchaser who discovers it later.

From a fairness perspective, your argument is essentially this:

“If a seller is in the best position to know the condition and history of their property, they should bear greater responsibility for disclosing that information before asking someone to commit hundreds of thousands of pounds to purchase it.”

That is a legitimate policy position and one that would probably resonate with many home buyers who have lost money on failed purchases due to hidden defects or missing paperwork.

Conclusion

Buying a property should not feel like a gamble. Yet many purchasers continue to shoulder the burden of discovering structural defects, planning breaches, missing documentation, and maintenance issues after making significant financial commitments.

A stronger argument can be made for greater transparency, including mandatory seller surveys, clearer disclosure requirements, and better evidence of maintenance and regulatory compliance before properties are marketed.

For buyers, the key lesson remains unchanged: never rely solely on appearances. Conduct thorough due diligence, obtain independent legal advice, commission appropriate surveys, and investigate any missing paperwork before committing to one of the most important purchases of your life.

Further Reading & Resources

• First Homes scheme: first-time buyer’s guide: Overview – GOV.UK
• Buying a home: Transferring ownership (conveyancing) – GOV.UK
• Terms and Conditions | Cardiff Development and Regeneration
• Get quotes for your home move | My Home Move Conveyancing
• Conveyancing | The Law Society
• conveyancing-report-220124.pdf
• Rooting out risk in property transactions | Today’s Conveyancer
• Dubious deals and divine dues: 10 property stories you might have missed | The Law Society
• Real-Life Conveyancing Horror Stories and How to Avoid Them – Quick Conveyancing
• 10 Auction Property Legal Pitfalls (and How to Avoid Them)
• Home Report – mygov.scot

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