Caveat Emptor Flashcards
What does caveat emptor mean?
A) The seller must disclose all issues with the property
B) The buyer is responsible for checking the property before purchasing
C) The buyer can always sue the seller for hidden defects
D) The buyer can cancel the purchase at any time
B) The buyer is responsible for checking the property before purchasing
📌 Explanation: Caveat emptor means “buyer beware”—the buyer takes responsibility for investigating the property.
Which of the following is NOT a method buyers use to investigate a property?
A) Title searches from the Land Registry
B) Reviewing the seller’s pre-contract replies
C) Waiting until after completion to inspect the property
D) Conducting a professional survey
C) Waiting until after completion to inspect the property
📌 Explanation: Buyers must investigate before exchange—after completion, they are legally bound.
What happens if a buyer discovers a defect after exchange of contracts?
A) The buyer can withdraw without penalty
B) The buyer can refuse to pay the seller
C) The buyer is bound to complete the purchase
D) The seller must fix the defect before completion
C) The buyer is bound to complete the purchase
📌 Explanation: Once exchange happens, the contract is legally binding—buyers cannot back out.
Jack is buying a house and discovers structural issues after exchange of contracts.
What are his legal options?
A) Withdraw from the transaction and get his deposit back
B) Request that the seller repairs the issue before completion
C) Complete the purchase as agreed
D) Sue the seller for not disclosing the issue
C) Complete the purchase as agreed
📌 Explanation: Under caveat emptor, the buyer must investigate before exchange. Jack is bound to complete.
Laura buys a property but later finds out that the house has severe damp issues.
When she checks the pre-contract enquiries, she sees that the seller stated they were unaware of any damp.
What is her best legal argument?
A) Misrepresentation—if she can prove the seller knew about the damp
B) Caveat emptor—she should have checked before exchange
C) She can withdraw from the transaction at any time
D) The seller must compensate her for repairs
A) Misrepresentation—if she can prove the seller knew about the damp
📌 Explanation: If a seller gives false information in pre-contract replies, the buyer may claim misrepresentation.
Tom agrees to buy a property and skips a professional survey to save money.
After completion, he finds a serious defect in the roof.
Can Tom sue the seller?
A) Yes, because the defect affects the property’s value
B) No, because he had the chance to check before exchange
C) Yes, if the seller also knew about the defect
D) Yes, if the defect was expensive to repair
B) No, because he had the chance to check before exchange
📌 Explanation: Caveat emptor applies—Tom should have done a survey before exchange.
Emma buys a house for £500,000 and later discovers that the garden is actually owned by a neighbor.
Who is responsible?
A) The seller, for not informing Emma
B) The buyer’s solicitor, for not checking the title properly
C) The Land Registry, for recording incorrect information
D) Emma, for not inspecting the garden before purchase
B) The buyer’s solicitor, for not checking the title properly
📌 Explanation: Title investigations should reveal land ownership issues before exchange.
A buyer agrees to purchase a property. After exchange, they find out the house is in a flood-risk area.
Can they withdraw from the contract?
A) Yes, because the seller failed to disclose the flood risk
B) No, because caveat emptor applies
C) Yes, if the seller knew and hid this fact
D) No, because flood risks do not affect property value
B) No, because caveat emptor applies
📌 Explanation: Buyers must conduct flood-risk searches before exchange—afterwards, they are bound by contract.
Who is responsible for checking if a property is in a flood-risk area before purchase?
A) The seller
B) The buyer’s solicitor
C) The estate agent
D) The Land Registry
B) The buyer’s solicitor
📌 Explanation: It is the buyer’s responsibility (through their solicitor) to conduct environmental searches before exchange.
Which of the following is true under caveat emptor?
A) The seller must disclose all known defects
B) The buyer must inspect and investigate the property before exchange
C) If the buyer finds a defect after exchange, they can withdraw from the sale
D) A seller must offer a refund if the buyer discovers defects after completion
B) The buyer must inspect and investigate the property before exchange
📌 Explanation: Under caveat emptor, the buyer has a duty to investigate the property before becoming legally bound.
What is the main legal risk if a buyer fails to conduct searches before exchange?
A) The seller can increase the price
B) The buyer could discover issues after exchange but still be legally bound to complete
C) The buyer can cancel the contract if they later find defects
D) The seller will be liable for any undisclosed defects
B) The buyer could discover issues after exchange but still be legally bound to complete
📌 Explanation: After exchange, the buyer cannot withdraw even if defects are found, unless misrepresentation applies.
Which of the following is NOT a valid way for a buyer to investigate a property before exchange?
A) Surveying the property
B) Conducting local authority searches
C) Checking the Land Registry title
D) Relying solely on the estate agent’s description
D) Relying solely on the estate agent’s description
📌 Explanation: Estate agents are not legally responsible for ensuring accuracy—buyers must conduct independent checks.
Ben agrees to buy a property, but after exchange of contracts, he learns that a major road expansion will take place nearby, reducing property value.
What are his legal options?
A) Withdraw from the contract
B) Sue the seller for failing to disclose this information
C) Proceed with the purchase, as caveat emptor applies
D) Demand a reduction in price from the seller
C) Proceed with the purchase, as caveat emptor applies
📌 Explanation: The buyer should have conducted local authority searches before exchange.
Sophie buys a property and later discovers a legal right of way allowing the public to walk through her garden.
Who is responsible for this oversight?
A) Sophie, for not checking before exchange
B) The seller, for not disclosing this information
C) The Land Registry, for failing to update records
D) The estate agent, for misleading Sophie
A) Sophie, for not checking before exchange
📌 Explanation: Legal rights affecting the property are the buyer’s responsibility to check during title investigation.
David buys a property and does not order a survey. After moving in, he finds that the roof is structurally unsafe.
Can David claim compensation from the seller?
A) Yes, if the seller knew about the defect
B) No, because caveat emptor applies
C) Yes, because the defect affects property value
D) No, unless the seller misrepresented the property condition
D) No, unless the seller misrepresented the property condition
📌 Explanation: Under caveat emptor, buyers must check for defects—unless the seller actively lied.
