Has a surveyor valued your property wrongly?

Surveyors are an important part of the property purchasing process. Surveyors provide expert reports on residential and commercial property, providing their opinion on the state of the property, where boundaries lie, and the correct sale or purchase value. However, surveyors don't always get it right, and when a surveyor makes mistakes, it can be very costly for their clients.

How are surveyor's negligence cases calculated?

The Court of Appeal provided clarification on how professional negligence claims against surveyors can be valued, in a case called Bratt v Jones which was decided last year. 

Mr Bratt owned a piece of land which he thought was worth between £7m and £8m. He instructed a surveyor called Mr Jones to value the land. In his report, Mr Jones valued the land at just over £4m. 

The general view for many years has been that if a surveyor values a property within accepted margins of error, they cannot be found to be negligent. For residential property, the accepted margin of error is 5%. For a non standard property, 10% is the standard margin of error and for properties which have exceptional features, the margin is 15%. 

This may seem like a rather rudimentary and unfair way of deciding whether a surveyor has been negligent, but for the time being it remains the law. 

The Court of Appeal confirmed that a claimant had to demonstrate that a surveyor's opinion fell outside accepted margins of error, in order to be classed as negligent, and that expert evidence was required to confirm this and to explain the original valuer's reasoning. Mr Bratt provided no expert evidence to support his appeal, and simply tried to rely on the established margins of error. The Court of Appeal did not accept Mr Bratt's argument and confirmed that he ought to have obtained expert evidence to support his appeal. 

The burden of proof is therefore clearly upon any claimant, to prove that a surveyor has been negligent. 

Examples of negligence by surveyors

Surveyors can be negligent in many different ways, and as long as their valuation falls outside of the accepted margins of error, and you have suffered a financial loss as a result, you may be able to bring a claim for compensation. 

Examples of some different ways in which surveyors can be negligent are as follows:

• A surveyor over valued a property, meaning that the person who bought it paid to much. If the buyer then has to sell the property, they would suffer a loss which could be claimed from the surveyor. 
• A surveyor under valued your property, meaning that a seller did not get paid as much as they should have. Again, this loss could be reclaimed from the negligent surveyor. 
• If a surveyor hasn't properly identified defects in the property, such as dry rot, woodworm, subsidence or other structural issues, the value of the property can be seriously affected, and the cost of remedying the defects can be claimed from the surveyor; or 
• If a surveyor made a mistake identifying the boundaries of a property, or failed to spot any covenants restricting what can be done by the new owners of the property, the value of the property could be seriously affected and the diminution in value could be claimed from the surveyor.

If you have been affected by negligence by a surveyor in a different way, we should still be able to help. 

What should you do if a surveyor makes a mistake?

If a surveyor makes a mistake, you should take action quickly to protect your position. If you think a surveyor has been negligent, you should tell them straight away, so they can inform their professional indemnity insurers. 

You should then ask the surveyor to provide you with their file of papers, which should include all notes, drawings, photographs, measurements and other information recorded on the day the survey was undertaken, together with any drafts of their reports. Alternatively, you could ask a solicitor to request this information from the surveyor on your behalf. 

Once you have the surveyor's file, you should take legal advice so that an expert professional negligence solicitor can guide you through the process of bringing a claim for compensation to reimburse you for your losses. It is likely that your solicitor will advise you that an expert report will be required to reassess the property, to check whether the original surveyor missed anything. The expert should also be asked to make recommendations for any work required at the property, if structural defects have been discovered, in their report. 

Sometimes, the expert's insurer will also obtain their own report to confirm whether the surveyor has made any mistakes. 

Once you have your expert's report, provided that they confirm the surveyor has been negligent, it is usually possible to reach a negotiated settlement with the surveyor's insurer. 

How much will I be paid by a negligent surveyor?

The value of a surveyor's negligence claim can be high. For example:

• If you paid £500,000 for a property that is only worth £400,000 because the surveyor simply made an error, your claim would be for around £100,000;
• If your surveyor didn't identify serious structural issues at the property you have bought, which will cost £75,000 to put right, you would be able claim that from the negligent surveyor; or
• If your surveyor failed to identify that your boundaries were in the wrong place, and you end up in a dispute with your neighbour, you could claim the legal fees you incur sorting out the boundary issues with your neighbour.

A surveyor who has been negligent will usually negotiate and agree to pay you compensation for your losses, as well as a high proportion of your legal fees. If you are unable to reach a negotiated settlement with a negligent surveyor, you may need to take them to court. If you have a sue a surveyor in court for professional negligence, you can claim compensation for your losses, as well as the majority of your legal costs. However, it is rare that court proceedings will be necessary, as the majority of valid claims will settle before reaching that stage. 

Get legal help to bring a negligence claim against a surveyor

Samuels Solicitors is a niche professional negligence firm, dealing with claims against surveyors from all over England and Wales. We have offices in Devon and Newcastle, and can help clients from anywhere in the country. 

We have a great track record of helping clients claim compensation from surveyors who have made a mistake. If you have a very strong claim, we may be able to offer you a conditional (no win no fee) agreement, which would mean a success fee was payable from your damages, but you would not have to pay for legal fees until the end of the matter. 

If you would like to bring a claim for professional negligence against a surveyor, contact us today to speak to one of our expert lawyers.