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Japanese Knotweed Indemnity Insurance is a a real must. Over the last year Japanese Knotweed legal claims have risen sharply,  according to an article published in the Daily Express (Oct 2021). Buyers and sellers had been rushing their transactions to save on stamp duty land tax. Law firm CEL Solicitors (specialists in Japanese Knotweed related claims) revealed there has been a large 25% year on year increase in misrepresentations cases. Cases arise when sellers fail to declare the presence of Japanese Knotweed on their property. The buyer then finds it on their property after completion of the sale. The sudden increase in claims is partly due to people rushing their transactions. This is to save money during the stamp duty holiday which came to an end at the end of the summer.

Japanese Knotweed Indemnity Insurance TA6 form

The Law Society’s TA6 form is completed as part of the conveyancing process. Sellers are required to state whether the property they are selling is “affected” by Japanese knotweed.  To enter ‘no’ on the form sellers need to make sure there are no rhizomes present. That includes underneath the ground and within three metres of the property’s boundary. Rhizomes are plant stems underground that can produce shoots and root systems of a new plant. Some sellers state their property is knotweed free without carrying out the correct checks.

When the plant is later discovered within the property’s grounds, they can find themselves in a costly misrepresentation claim. Buyers can them claim the costs of the Japanese Knotweed treatment, which can cost up to thousands. This will also result in the diminution of the value of that property. The value of the property can diminish by 10 percent.

As an example, in the article, a couple purchased a new build home in East Molesey, Surrey in 2016 which was reported to be Japanese Knotweed free. The developer stated on the TA6 form that there was no Japanese Knotweed in the vicinity or on the premises. In Spring 2017 a gardener noticed Knotweed growing in a walled garden adjacent to the swimming pool building. Japanese Knotweed specialists identified that this was Japanese Knotweed. On further investigation they found that the plant would have been present at the time of the sale of the property.  

Investigation

On further investigation, discarded Japanese Knotweed cuttings were then also found at the site. The seller quite likely attempted to conceal its presence.  The couple had their legal fees covered by their home insurance policy in this instance. Charles Lyndon was appointed to pursue a legal case for misrepresentation and the couple won their case. In Autumn 2020 they were awarded several thousand pounds in compensation. Property owners can take out a Japanese Knotweed Indemnity insurance which will cover any new growth of knotweed.

They stated they were “shocked and worried” to discover the invasive plant in their new garden. They knew it could have a “big impact” on their property’s value. Moreover they knew it would be difficult to then sell on.  He continued “We were fortunate that our home insurance was willing to cover us for pursuing a legal claim and, although it was a long process, in the end we achieved a favourable result.  With expert help, it’s relatively easy to prove how long knotweed has been there. I would encourage anyone in a similar position to go down the legal route and try to recover to lost value on their home. The Japanese knotweed question is part of the conveyancing process for a reason. Dishonest sellers need to be held accountable.”

Property Transactions

In 2021 property transactions hit a staggering 213,120. This is a year on year increase of 216% compared to June 2020, according to data from HMRC. There is a rise in misrepresentation claims due to the increase in these transactions alone.  However, some sellers have skipped certain checks and stated their property is knotweed free. This is due to the pressure to complete transactions before the stamp duty holiday ended or threshold changed. Some buyers may have been tempted to avoid having a Japanese Knotweed survey in order to speed up the sale process.  Indemnity insurance for Japanese knotweed gives added comfort if new knotweed is to be found to be growing in the future.