It’s spooky season! And, as with every year Halloween films are upon us. Disney has presented a family take on a horror film this year with ‘Haunted Mansion’, based on its classic attraction. In this film, Gabbie, a doctor and single mother, buys Gracey Manor, a large and deserted mansion, with the intention of moving into it with her son and turning it into a bed and breakfast business. As the film title suggests however, Gracey Manor turns out to be haunted by nearly 1,000 ghosts!
But is there any way Gabbie could have known about the ghosts before she bought the property? If Gracey Manor had been in Jersey, what could Gabbie have done to make her aware of the issue before she made the purchase?
When purchasing a property in Jersey buyers need to be aware of the ‘caveat emptor’ principle: “buyer beware”. As such, all contracts for property purchases in Jersey contain the following clause:-
“the Property was sold with all such rights, appurtenances and dependencies as may appertain thereto, in the state in which it was at the date hereof with all its apparent or hidden defects (“vices cachés”), if any”.
The responsibility is thus placed directly on the purchaser to be satisfied with the condition of the property. A prudent purchaser should ensure that the property is inspected by a qualified building surveyor. A surveyor would be able to tell you which of the following surveys is appropriate in relation to your purchase taking into account the age, construction, size etc.
If Gabbie were to have appointed an appropriate surveyor to inspect Gracey Manor, she might have been advised of anything that appeared out of place. Whilst this might not have extended to the paranormal, it may have alerted her to say the poor condition of the property, the faulty electrics or the moving suits of armour!
There are two main forms of inspection Gabbie could have asked for:-
A Homebuyer’s Report – This involves a basic inspection of the property and identifies potential problems or defects. The purpose of a Homebuyer’s Report is to allow a purchaser to make a decision on what is a reasonable price to pay for the property, taking into account any required repairs or replacements highlighted on the survey.
A Full Building Survey – This involves a thorough inspection of the property. The survey will contain a detailed breakdown of the property’s construction and condition and, in addition to identifying areas of concern, it will offer remedial solutions (although this is may not extend as far as psychics or exorcists!).
If Gracey Manor had been in Jersey, say located in the depths of St Ouen, there is also the “Law Society Standard Seller’s Questionnaire” which would have to be completed. This document is completed by the seller (or ‘vendor’) and gives the seller the opportunity to be up front with any issues with the property both past and present. Whilst any vendor may not be willing to say that their house is haunted, this document may have allowed Gabbie’s lawyer to carry out pre-contract enquires or raise any questions that they may have as a result of the information on the document. Her lawyer could also raise any questions which the survey may have highlighted (such as “Why are there walking suits of armour in the halls?!”). This is all a standard part of the purchase process in Jersey.
It is also worth noting that surveyors also produce valuation reports for lending banks where there is a mortgage to be applied to the property. These reports are fairly basic and do not note any major defects which might affect the value of the property, so the purchaser cannot rely on these reports should any defects come to light following the purchase. – If Gabbie had relied on this report before purchasing Gracie Manor, she would not have had any issues about the property raised in advance. Given she bought the property and then found out about its many, let’s say “issues”, there is every chance that this is what she did, therefore she would fall foul of the caveat emptor principle.
Gabbie therefore arguably did not carry out her due diligence or make necessary enquiries by appointing a surveyor prior to purchasing Gracie Manor. As such, she ended up buying a Haunted Mansion and getting far more than she bargained for!
As a final point, whilst this would not directly apply to Gracie Manor, if purchasing a property “off plan”, the sale agreement will contain warranties in respect of the property to the effect that the property will be constructed in accordance with specified plans and the necessary consents from the relevant authorities will have been obtained. A purchaser would therefore not have to have a survey carried out, however they should enquire as to whether there is a “snagging period” following completion of the build to cover any defects which come to light following construction. Developers normally put in place a Latent Defects Policy “decennial” insurance which will cover the build for 10 years.
The takeaway from this is simple – try not to fall foul of caveat emptor as Gabbie did. It is always worth having investigations carried out by a surveyor prior to purchasing a property so you can be advised of any potential defects or risks in advance. Whilst Gabbie could likely have required assistance from her local Ghostbusters (sorry, wrong franchise!), if you require help with a property purchase, then please give us a call. Happy Halloween!