Your home is often your biggest asset and when it comes to selling, it is important to remember that failing to disclose required information in pre-contract enquiries can lead to an expensive legal challenge.
In a recent case, Patarkatsishvili and Hunyak v Woodward-Fisher [2025], a significant moth infestation, in a luxury London home, resulted in serious consequences, both financially and legally.
Background
In May 2019, a £32.5 million house in London was bought by the purchasers, Iya Patarkatsishvili and Dr Yevhen Hunyak. The seller, William Woodward-Fisher had previously undertaken extension works to the house, which used a wool based insulation within internal walls and floor voids. This insulation provided a breeding ground for moths, which resulted in a significant infestation of moths within the house.
Following completion of the works, the seller noticed moth damage to their clothing and, as result of this, instructed Rentokil and Environ to quote to deal with the problem.
Rentokil, mentioned in their quote that confirmed via the builder and/or architect, the insulation was the most likely cause of the increase of the moth infestation. Environ, in comparison, on first inspection did not consider the newly fitted insulation to be the likely cause of the moth infestation.
Environ were then instructed to undertake treatment at the house and eventually produced a report concluding that the insulation was the cause of the moth infestation. Although further treatment was undertaken, the insulation was not removed.
The property was then put on the market and once the new owners moved in, they suffered moth damage due to a further moth infestation.
Where did it go wrong?
The seller was under a duty to provide accurate and complete information in the pre-contract enquiries and failed to do so. Failure to do so, can result in a misrepresentation.
There are different types of misrepresentations namely:
- fraudulent misrepresentation – if a seller makes a statement to the purchaser that the seller knows to be without truth or is reckless as to the truth;
- innocent misrepresentation – if a seller makes a statement that is incorrect, but had reasonable grounds to believe that it was true;
- negligent misrepresentation – if a seller makes a statement without checking that it is correct or truthful.
The court had to consider if the seller knew or suspected that the pre-contract replies were untrue.
In the replies to enquires, the seller stated that:
- he was not aware of any vermin infestation affecting the house;
- there were no reports concerning vermin infestation or the fabric of the house;
- he was not aware of any defects not apparent on inspection of the house.
A point of consideration for the court was whether the seller knew that the moths could be defined as vermin and therefore the infestation would have to be disclosed. The seller did seek advice from his solicitor on the issue but ultimately chose not to disclose the information.
What was the outcome?
The court concluded that the moths did amount to vermin in this case and as the seller had not disclosed this information at the pre-contract enquiries, that would amount to a misrepresentation.
The contract for sale was rescinded, and the seller was required to refund the purchase price, less a sum for the use by the purchaser for the occupation in the house.
In addition to this, the seller was ordered to pay substantial damages in respect of the stamp duty paid, cost of remediation works relating to the pest control required, damaged possessions, compensation for loss of enjoyment and legal costs.
How to avoid the pitfalls
Whilst each case will be decided on its own facts, this case serves as a cautionary tale to those selling and buying houses.
For buyers, care should be taken with inspections and undertaking the appropriate surveys. Ensure that if you are concerned about a response in a pre-contract reply, further investigations are made.
For sellers, remember that full disclosure is required. If in doubt, take legal advice.
If you have any questions regarding this case or related matters, please contact us on 0345 646 0406 and a member of our Team will be in touch.