Honesty escapes the speculators

THE Property Misdescriptions Act, which came into force this month, is designed only to protect buyers. It does nothing to ensure sellers get a fair deal, writes Keith Sharp.

There seems little that can be done about a buyer who lies on his own behalf - assuming the deceit could be proved.

But if a developer, perhaps seeking conversion into flats, acts in conjunction with another who is employed solely to acquire a property under false pretences, there could be a case of conspiracy to defraud. The trick of undervaluing properties and then sending along cronies to buy them at a bargain price is a tactic that has been used by unscrupulous estate agents in the past. But does it really matter whether a buyer is a chancer or a worthy citizen investing in a large property for his old mother, provided that a fair price is paid for the home?

It may matter to the seller if the object of the trickery is to drive down the price to a level that will ensure a large profit for the speculator. When my large Victorian house was first put on the market, I was nave about the methods employed by some property developers.

Not all speculators drive Porsches any more. Very often, they are sweet young women in Volvos or E-registered BMWs ostensibly looking for somewhere with a bit of character - and perhaps an annexe for grandma.

They fail to tell you that they are acting for a property developer and will lie through their teeth to acquire your property for less than its market value. Many of the visitors to my house claimed to be looking on behalf of their mother, who needed somewhere either bigger, smaller or nearer to their children.

This week, I have even had a couple looking for a place suitable for both their mothers.

Not everyone with a home for sale will attract such inquiries. A house has to have development potential (in most cases that means suitable for flats) or be near a proposed development which only the property developers may know about.