Selling a property is often a challenging endeavour in itself, and when you factor in a boundary dispute, the process can become significantly more complex. A boundary disagreement with a neighbouring property owner can diminish your property value, delay a sale, or even discourage potential buyers entirely. While you can legally sell a house with an ongoing boundary dispute, there are certain responsibilities and considerations you must be fully aware of.
What is a boundary dispute?
A boundary dispute typically occurs when neighbouring property owners disagree over the exact location or extent of their adjoining property boundaries. Often, these disagreements arise due to unclear property documents, insufficient historic demarcation, ambiguous rights-of-way, or simply differing interpretations of the land registry and deed details.
Boundary disputes can range from minor disagreements about fence placements to significant claims involving substantial portions of land.
Your obligations as a seller
Sellers are legally obligated to provide accurate information regarding any disputes affecting their property. Boundary disputes must be clearly disclosed to potential buyers as part of the conveyancing process, typically through the TA6 Property Information Form. Non-disclosure or misrepresentation of a boundary dispute can open the door to legal challenges from the buyer or future owners after the sale has been completed.
Impact on your property's marketability
When there is an unresolved boundary dispute, the perceived value of your property can decrease. Potential buyers may be hesitant to take on a property that has outstanding legal issues or uncertainty regarding land ownership. Mortgage lenders can also be reluctant to provide finance on properties with ongoing boundary conflicts, further limiting the number of possible buyers.
Resolving a boundary dispute before the sale
Ideally, a boundary dispute should be resolved before placing your property onto the market. Resolution can often be achieved through careful negotiation or mediation. If this does not lead to an amicable solution, legal proceedings or adjudication may be necessary. It is advisable to engage professional assistance from legal experts with experience in property law to guide you through these processes efficiently and clearly.
Selling a property with an ongoing dispute
If resolving the boundary dispute prior to sale proves impossible, you can still sell the house, although it may take longer to complete the transaction. Offering transparency upfront and clearly explaining the nature of the dispute can help potential buyers understand the issue and evaluate its implications. You might need to consider accepting a reduced offer, reflecting the additional risk or inconvenience posed by the unresolved boundary disagreement.
Seek professional advice
Boundary disputes can escalate quickly and become complicated. Seeking expert legal advice from a qualified solicitor ensures you fully understand your legal position and obligations. Professional guidance can improve your chances of resolving the issue swiftly, protecting your interests, and simplifying your property sale.
In conclusion, although you can sell a house with a boundary dispute, it is strongly recommended to take steps to resolve such disputes prior to marketing the property. Properly addressing boundary issues can help facilitate a smoother and more profitable property sale transaction.
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