Having a disagreement with a neighbour can be stressful enough without worrying about how it might affect your plans to move home. Whether the dispute is over a boundary, access, noise or damage, the good news is that it won’t automatically prevent you from selling your property.
That being said, the nature of the dispute can make a difference. A relatively minor disagreement might not affect the transaction at all, while an unresolved legal dispute could raise questions for the buyer and their mortgage lender.
If you’re thinking about selling while a dispute is ongoing, it’s important to understand what you need to disclose, how the issue could affect the transaction, and whether it’s worth resolving the dispute first.
Can You Sell a Property While a Neighbour Dispute is Ongoing?
Yes, there’s no rule preventing you from putting your property on the market simply because you have a dispute with a neighbour. However, selling the property doesn’t automatically make the dispute disappear either. If it affects the property or the buyer’s rights, you may need to address it during the conveyancing process.
For example, a disagreement about occasional noise is very different from a dispute over where the boundary lies. The latter could involve legal rights attached to the property and therefore be much more relevant to a prospective buyer.
If you’re already involved in a dispute, tell your solicitor at the beginning of the sale. They can advise you on what information you may need to provide and whether there are any steps worth taking before exchange and completion.
Does the Type of Neighbour Dispute Matter?
Neighbour disputes can involve everything from noise, trees and fences to more substantial disagreements about land ownership, access, and rights of way. The legal implications will depend on the circumstances and the effect on the property’s legal title.
For instance, rights of way disputes can be significant because they might raise questions about exactly which land forms part of the property. If your neighbour claims they have a legal right to use your driveway or access part of your garden, the relevant title documents and deeds need to be examined. This is why you should give your solicitor the full background from the outset.
Do You Have to Tell a Buyer About a Neighbour Dispute?
This is one of the most important questions to discuss with your solicitor.
When selling a property, you will normally be asked to complete a Property Information Form, commonly known as a TA6. The current sixth edition of the TA6 is used for most residential transactions in England and Wales. It includes questions about disputes, boundaries, notices and rights or arrangements affecting the property. You should answer the questions accurately based on what you know. If you are unsure whether a particular disagreement needs to be disclosed, ask your solicitor about it rather than just leaving it out.
The important point is not to assume that a buyer will never find out about an ongoing dispute. Information can easily emerge through the conveyancing enquiries, documents or other investigations carried out during the sale.
Could a Neighbour Dispute Affect the Sale or Buyer’s Mortgage?
A neighbour dispute doesn’t automatically mean your property can’t be sold or that a buyer will be refused a mortgage. However, it can complicate the transaction if it raises questions about the property’s legal title, value, or the rights associated with it.
Once the buyer’s solicitor becomes aware of the dispute, they might ask to see relevant correspondence, agreements, plans or other evidence, and they will need to understand exactly what the buyer is acquiring. If the dispute relates to the property being used as security for a mortgage, the buyer’s solicitor may also need to report the issue to the mortgage lender. They will then consider the circumstances against their own lending criteria.
The buyer might proceed once they understand the position, negotiate the price, or withdraw from the transaction. This often depends on the nature and seriousness of the dispute and whether there is a realistic way to resolve it.
What if the Dispute is About a Boundary?
Boundary disputes require particular attention when selling because they can affect the land being sold. It’s a common misconception that the red line on a Land Registry title plan shows the exact legal boundary. In fact, most registered titles show general boundaries, rather than precisely determined lines.
HM Land Registry explains that establishing the exact legal boundary may require considering the relevant conveyances, transfers, plans, and other evidence. This means a boundary dispute can’t necessarily be resolved simply by looking at the title plan.
If you’re already involved in a boundary dispute, it’s worth getting legal advice before putting your property on the market. A solicitor can assess the position and advise whether to resolve the matter before the sale or disclose and deal with it during the conveyancing process.
What if Legal Proceedings Have Already Started?
When a disagreement moves beyond an informal argument, it may become a property litigation matter. Getting advice early can help you understand your options before the dispute affects your prospective sale.
If court or tribunal proceedings are already underway, the buyer will need to understand what they concern and whether they could affect the property. You should also tell your solicitor if you have received formal correspondence from your neighbour’s solicitor, a court claim, tribunal application or other legal notice.
Don’t try to conceal an ongoing legal dispute simply to make the sale easier. If the buyer discovers a significant issue late in the transaction, this could result in further enquiries, renegotiation or the buyer deciding not to proceed.
Should You Resolve the Dispute Before Selling?
Resolving a dispute before putting your property on the market can make the transaction more straightforward. However, waiting for a complete resolution isn’t always practical. Negotiations or legal proceedings can take time, and delaying a sale might not be in your best interests.
If the dispute has already been resolved, that doesn’t necessarily mean you can simply forget it either. The current TA6 includes questions about disputes, so you should provide any agreement, correspondence or other documentation showing how the matter was resolved. Your solicitor can then advise whether the issue needs to be disclosed and whether resolving it before marketing the property is likely to make a difference.
Mediation can also help neighbours reach an agreement without going to court, although suitability depends on the circumstances and both parties’ willingness to participate.
What Should You Tell Your Property Solicitor?
If you’re selling while a neighbour dispute is ongoing, give your solicitor as much information as possible at the start of the conveyancing process. This could include correspondence with your neighbour, letters from solicitors, previous agreements, current plans, photographs, survey reports and details of any legal proceedings.
It’s also helpful to explain the history of the disagreement rather than providing only the latest development. Something that appears straightforward from a recent email can have a background that changes its legal significance.
Sharing this information early allows your solicitor to consider the dispute alongside the rest of the conveyancing work. It’s much easier to deal with a potential problem at the start of the sale than when the buyer is already asking questions shortly before exchange.
Speak to Property Litigation Solicitors at Ubique Legal
A neighbour dispute doesn’t automatically prevent you from selling your home, but its potential impact depends on what the dispute is about. Some disagreements require more careful consideration because they may affect the legal rights attached to the property, and getting advice early can help you understand whether the issue needs to be resolved before a sale or disclosed and dealt with during the conveyancing process.
At Ubique Legal, our property litigation team advise homeowners on a wide range of neighbour-related disputes. We can help you understand your options and consider the most appropriate way forward, whether that involves negotiation, mediation or formal proceedings. If you’re planning to sell a property where an issue remains unresolved, our property law specialists can help you understand the legal position and what it could mean for your property.
For homeowners looking for property solicitors in Birmingham, don’t hesitate to get in touch for more information, and we’ll get back to you as soon as possible.
