What happens if there are legal disputes about the property (e.g. boundary issues, planning permissions)?

Why legal disputes matter when buying or selling

Any uncertainty around ownership, use or legality can affect:

• Buyer confidence: Some buyers will walk away if they fear future problems.
• Mortgage approval: Lenders may refuse to lend until issues are resolved.
• Property value: Legal risks usually result in lower offers.
• Timeframes: Dispute enquiries slow down conveyancing, sometimes for months.
• Future liability: If a seller hides a dispute, they may face legal claims after completion.

Boundary disputes

What counts as a boundary dispute?

A boundary dispute arises when neighbours disagree about the exact location of a fence, hedge, wall or strip of land. It might start informally or escalate into legal correspondence.

How boundary disputes affect a sale

• You must disclose any dispute when selling.
• Buyers' solicitors will examine maps, title plans and historic evidence.
• The buyer might ask for a price reduction or delay exchange until the dispute is resolved.
• Some buyers may withdraw entirely if the dispute is active.

How boundary lines are clarified

• Title plans give general boundaries but are not exact.
• Old deeds or plans may give more detail.
• Surveyors can provide expert boundary reports.
• Agreements between neighbours can be formalised and added to the title.

Ways to resolve boundary issues

• Informal neighbour agreement in writing.
• Mediation through a professional mediator.
• Applying to the Land Registry to fix the boundary.
• County Court or tribunal action (last resort - expensive and slow).

Planning permission and building regulation disputes

Common problems

• Extensions built without planning permission.
• Loft conversions or garages lacking building regulation sign-off.
• Expired permissions where works didn't follow approved plans.
• Neighbour objections or unresolved enforcement notices.

How these issues affect a sale

Buyers and lenders want reassurance that all works meet legal standards. Missing paperwork can stop a sale completely unless resolved.

Solutions

• Locate original paperwork: Your solicitor can check with the local authority.
• Retrospective planning permission: If the council is likely to approve the existing works.
• Lawful Development Certificates: Helpful for older works where enforcement deadlines have passed.
• Indemnity insurance: Often used if permission is missing but the risk is low.

Important: Contacting the council directly can sometimes invalidate indemnity insurance - always get legal advice first.

Access disputes, rights of way and easements

Access issues arise when:

• Neighbours claim a right of way across your land.
• You rely on shared driveways, paths or unadopted roads.
• Rights of access are unclear or undocumented.

How they impact a sale

• Buyers need certainty that access is legal and secure.
• Lenders may refuse mortgages if rights are unclear.
• Disputes may require deeds to be updated or formal agreements to be created.

Possible solutions

• Reviewing deeds and title documents to confirm rights.
• Creating a formal deed of easement to secure access.
• Using indemnity insurance where historic access is established in practice.

Restrictive covenants

These are legal rules written into the title, such as:

• No business use.
• No extensions without consent.
• Restrictions on building in gardens.

How they affect a sale

If the property breaches a covenant (for example, an extension built without consent), buyers may be cautious and lenders may need extra reassurance.

What you can do

• Apply for consent from the party who benefits from the covenant.
• Apply to modify or remove the covenant (longer, more involved process).
• Use indemnity insurance if the breach is historic and risk is low.

Party wall disputes

If you've carried out structural work (loft conversion, chimney removal, extension), you may need to show that Party Wall notices were served and agreements were in place.

Impact on a sale

• Ongoing disputes must be disclosed.
• Buyers may request party wall awards or evidence of proper procedure.

Leasehold disputes

For leasehold properties, common legal issues include:

• Service charge disputes.
• Arrears or unpaid fees.
• Short lease length affecting mortgage-ability.
• Disagreements with freeholders or management companies.

Leasehold disputes can be slow to resolve because management packs take time and freeholders may need to respond before progress can be made.

Your duty to disclose disputes

When selling, you must complete a Property Information Form (TA6). This asks whether you have had any disputes or complaints with neighbours, councils or management companies.

• You must answer honestly.
• Do not hide disputes: Buyers can sue for misrepresentation later.
• If in doubt: Speak to your solicitor before completing the form.

What buyers should do if they discover a dispute

• Review the issue carefully with your solicitor.
• Decide if the risk is manageable or a deal-breaker.
• Renegotiate price if future costs may arise.
• Request indemnity insurance where suitable.
• Walk away if the risk is too significant.

How Farrell Heyworth helps with legal disputes

At Farrell Heyworth, we guide clients through disputes with clarity and calm. We work closely with solicitors and help buyers and sellers make informed decisions. Our team can:

• Identify potential issues early during valuation and marketing.
• Provide honest advice on pricing strategies when disputes exist.
• Support sellers in gathering the right documents or insurance options.
• Manage expectations within a chain to minimise delays.

Legal disputes don't automatically stop a sale - but they do require transparency, patience and expert support. Whether it's a boundary disagreement, missing planning paperwork or access uncertainty, most issues can be resolved or managed with the right approach. The key is to act early, involve your solicitor and keep communication clear.