Money Problem: ‘Someone was killed in my house – do I need to tell buyers?’

Business

Money blog reader Jane T asks: “I want to put my house on the market. One of the previous owners was stabbed to death by a family member in the house. Do I need to tell prospective owners?”

We asked Johnny Drysdale, residential property partner at Keystone Law, to answer this one…

Johnny says transparency is critical when it comes to buying or selling a property.

“Misleading omissions can lead to major legal consequences. The law is clear: sellers must provide all important information to ensure that buyers can make informed decisions,” he says.

Johnny notes there’s a “balancing act” for solicitors between confidentiality and the duty to disclose.

“If a seller shares sensitive information about the property, such as a defect in the state and condition of the property or, say, a murder that has taken place in the property, and requests that it not be passed on to the buyer, the solicitor must carefully consider their legal obligations,” he says.

“Upholding transparency while maintaining confidentiality can sometimes create challenging scenarios.”

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Pic: iStock

Avoid a costly court battle

Johnny says sellers should be “proactive” in revealing any known defects – while hiding a problem could seem tempting, it could result in “costly legal battles”.

“The courts have seen cases where deliberately concealing defects has led to claims of deceit, setting a strong precedent for the importance of honesty in property transactions,” he says.

“Early and open communication between buyers and sellers is key to avoiding delays and ensuring a smooth transaction,” he adds.

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“Both sides should aim to share relevant information from the start, helping to build trust and prevent surprises later on.

“Transparency isn’t just a legal requirement – it’s the best way to ensure a property deal goes smoothly and fairly for both parties.”

In a nutshell, Jane – yes, you’re legally required to proactively pass on this information.

This feature is not intended as financial advice – the aim is to give an overview of the things you should think about. Submit your dilemma or consumer dispute via WhatsApp here.

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