From buyer beware to seller beware? Landmark £32.5m moth mansion case shakes up property law

A game-changing High Court ruling has shaken up the property market, altering the long-standing "buyer beware" rule and setting new expectations for sellers.

In the case of Iya Patarkatsishvili and Dr Yevhen Hunyak versus property developer William Woodward-Fisher, the court ruled that sellers must provide complete and truthful information about known defects.

This case, involving a £32.5 million mansion plagued by a severe moth infestation, underscores the growing legal responsibility for sellers.

For those buying a house, it’s now more important than ever to ensure that sellers fully disclose any issues, as the courts are placing greater emphasis on transparency and honesty in property transactions.

The case that changed the rules

Patarkatsishvili and Hunyak purchased Horbury Villa, a £32.5 million Victorian mansion in Notting Hill, only to discover soon after moving in that a severe moth infestation plagued it.

Despite multiple visits to the property before purchase, the couple argued that the infestation was not disclosed properly. The High Court ruled in their favour, ordering the developer to refund the purchase price (minus £6 million for use of the property) and to pay an additional £4 million in damages, including £3.7 million for stamp duty and £15,000 for ruined clothing and even ruined antique bottles of wine.

The ruling hinged on Woodward-Fisher’s failure to provide honest responses to pre-contract enquiries. While he acknowledged some moth issues, he failed to disclose the full extent of the problem, despite having received pest control reports warning of a serious infestation requiring major insulation removal.

In his ruling, Judge Justice Fancourt stated: “The Defendant did not honestly believe the truth of his replies.”

He further explained that Woodward-Fisher had received reports about the infestation and knew “there was or may have been a serious infestation of moths requiring removal of all the natural insulation in the house.”

Caveat emptor no more?

The doctrine of caveat emptor traditionally places the burden of due diligence on the buyer. However, this case demonstrates that sellers cannot simply rely on “buyer beware” when responding to pre-sale enquiries.

The judgment reinforces that sellers must provide truthful and complete information in Property Information Forms (TA6) - especially when defects are known and documented.

This ruling aligns with a growing trend in property law, where courts are increasingly holding sellers accountable for misrepresentations.

Although sellers are not yet legally required to volunteer information about all defects, they can no longer provide misleading or incomplete responses without facing serious financial repercussions.

Legal and industry implications

For real estate developers and sellers, this case raises critical questions about disclosure obligations:

• Increased transparency: Sellers may need to adopt a more cautious approach when answering pre-contract enquiries, ensuring they do not omit material defects.
• Due diligence responsibilities: While buyers must still conduct thorough inspections, they now have stronger legal grounds to challenge misleading or incomplete disclosures.
• Potential regulatory changes: This ruling may prompt legal reforms aimed at tightening disclosure laws in high-value property transactions.

Tara Jones, Property Litigation Solicitor at Lester Aldridge, stated: "Buyers and sellers beware! The case highlights the importance of transparency in property transactions and serves as a cautionary tale for sellers regarding the potential consequences of failing to disclose known issues and the importance of completing the property information form to the best of your knowledge."

She also claimed buyers may become more confident in challenging misleading seller representations, potentially leading to an increase in litigation over property defects in the future.

Tara Jones

Tara is a solicitor at Lester Aldridge LLP specialising in property litigation. Their expertise covers a wide range of residential and commercial property disputes, including possession proceedings, service charge issues, restrictive covenants, rights of way, and boundary disputes. Additionally, they provide advice on the Building Safety Act 2022, specifically regarding landlords' and leaseholders' obligations, including drafting and reviewing deed of certificates.

What’s next for UK property law?

While this case focused on a luxury home, the principles established could trickle down to the broader property market.

If courts continue to prioritise seller honesty over buyer responsibility, the UK could see legislative reforms requiring more stringent disclosure rules. In countries like the United States, sellers are already required to provide detailed property condition reports - could the UK be heading in the same direction?

For now, property sellers should take note: failing to disclose known defects is no longer a risk-free strategy. As this case shows, the financial consequences can be severe, and the legal landscape is shifting from “buyer beware” to “seller beware.”