As a vendor, you should reveal to the purchaser the encumbrances against the property, if there is any, such as:

• government order for removal of unauthorized building work (UBW);
• unpaid property management fees;
• repair works of the building concerned;
• any mortgage over the flat that has not yet been discharged; or
• lawsuit concerning the flat.

Although the estate agent or the purchaser can check the above information by conducting a land search (if the encumbrances have been registered in the Land Registry), it is in your interest to reveal all the encumbrances and negotiate with the purchaser to avoid subsequent disputes, which could hamper the sale process. In addition, you have a duty to disclose the latent defects, which a purchaser cannot discover by a reasonable inspection of the property.

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