A seller made a false statement when replying to the questions in the Property Information Form (TA6). This statement induced the buyer to enter into a contract with the seller. What will be the legal effect of this statement?

• A. The buyer may have a misrepresentation claim against the seller
• B. The buyer automatically rescinds
• C. The seller is liable only if fraud
• D. There is no remedy

Answer: (A)

Misrepresentation in a property transaction happens when a seller makes a false statement of fact about the property that influences the buyer to enter the contract. If the seller’s reply on the TA6 contains a false statement and the buyer relied on it to proceed, the buyer has a remedy for misrepresentation.

The key point is that the misstatement induced the contract. That gives the buyer a potential claim against the seller for misrepresentation, with remedies that include rescinding the contract or claiming damages. The exact remedy depends on the type of misrepresentation (fraudulent, negligent, or innocent) under the Misrepresentation Act 1967, but the option chosen correctly identifies the buyer’s right to pursue a misrepresentation claim, rather than an automatic rescission or a universal liability only for fraud. In short, a false statement in the TA6 that induced the purchase creates a basis for a misrepresentation claim.