Module 2 · Chapter 5

Enquiries, Survey and the Price

A seller need not point out what is wrong with its building. So the buyer asks in writing, sends in a surveyor, and uses what it finds before the contract binds.

≈ 9 min read 8-question test

In this chapter

  • Why the buyer must find a building's defects for itself
  • Which of the seller's statements the buyer can rely on
  • How a survey cut the price, and who then manages the asbestos

5.1Let the buyer beware

A seller of land need not point out physical defects in what it sells, even ones it knows about. This rule is called caveat emptor (Latin for “let the buyer beware”). It covers the building, not the title. A seller must still disclose a defect in its title that it knows of and the buyer could not find by inspection.

So the buyer finds out for itself before exchange, in three ways. It asks the seller questions in writing, it sends a surveyor into the building, and it searches public records (Chapter 6).

Key point

Before exchange, a defect is a reason to cut the price or walk away. After exchange, the buyer has only what the contract promises. At Beckside Works the contract promises nothing about the building's condition.

Also in this chapter

  1. Asking the seller in writing
  2. Which statements the buyer can rely on
  3. What the survey found
  4. Trading the price for the roof
  5. Who manages the asbestos after completion
  6. If Fellgate had not had a survey
  7. Your job

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