Dishonest Seller pays £36m for moth-infested mansion and learns ‘Honesty is the Best Policy’

A recent High Court ruling over a £32.5 million London mansion proved this when the seller failed to disclose that the property was infested with moths.

Horbury Villa, a luxury home in Notting Hill was bought by Iya Patarkatsishvili and her husband in May 2019. Shortly after moving in, they discovered a severe moth infestation, which was later recognised to be a result of the property’s wool insulation. The couple filed a claim against the seller arguing that he provided false information and failed to disclose the infestation.

The Court overturned the sale, ordering the seller to reimburse the couple for the purchase price and pay an additional £4 million in damages.

This case is key in showing that whilst the ‘buyer beware’ principle is long established in conveyancing transactions, and buyers should still carry out their due diligence, this does not protect sellers should they decide to mislead potential buyers and provide them with false information. Should a seller take that risk, they can face severe legal and financial consequences.