Misleading sales and pre-purchase information

The buyer’s claim

The buyer claimed the builder provided inaccurate and incomplete marketing and pre-purchase materials regarding the bulk sale of properties on the estate to a third-party company and the sale of a property near the entrance as a commercial building instead of a community hall.

The buyer requested a written apology and £15,000 compensation.

The builder’s defence

The builder claimed its marketing materials were accurate, and that its pre-purchase materials were updated and made available to the buyer and their solicitors regarding the sale of other properties on the estate.

The builder also stated it had correctly handled the buyer’s complaint and provided an outcome within an appropriate time frame. The builder did not offer any further redress as the buyer had not provided evidence to substantiate their monetary claim.

The adjudicator’s findings

The adjudicator noted that the buyer’s complaints all related to information regarding the surrounding development not to the home itself.

The adjudicator found no evidence that the builder had intended to sell the properties in bulk at the time the marketing materials were produced, and the materials could not reasonably be expected to outline every possible selling scenario.

The adjudicator also noted that advertising the property near the estate entrance for other purposes subject to relevant planning permission was the default position for the sale of any property and not in breach of the Code.

The adjudicator felt the builder had acknowledged and fully responded to the buyer’s complaint in good time, including an apology and comments from the builder’s regional managing director.

Learning points

For buyers:

• Although builders must provide clear, accurate and truthful marketing material, some decisions or characteristics may change depending on market conditions. Builders must inform you about changes directly affecting your property and inform you about future phases of the development where this information is known. All marketing information provided must be truthful and accurate at the point it is provided.  
• If there are certain circumstances that would change how you feel about buying a property – such as where on a site it was located, what it might be near to, or what the boundary or view may be – tell your builder at the outset. They may not be able to offer any guarantees, but that would give you an opportunity to consider whether you still wish to go ahead before reserving a plot.  

For builders:

• The information you give to buyers must be correct at the time it is provided. It’s a good idea to put dates on documents and record when information is given to a buyer to help keep track of what was provided, when, and ensure buyers are informed if anything changes which affects their home or the wider development.
• Always provide buyers with a copy of your complaints process and be ready to follow it to stay compliant with the Code and offer good customer service. In this case, had the builder not followed its own complaints process, it may have breached the Code even if the main issue in question did not constitute a breach.
• Be aware that how other parts of your site are used or sold can impact how buyers feel about their homes.