Cases - Collins v Howell-Jones

Record details

Name

Collins v Howell-Jones

Date

[1981]

Citation

2 EGLR 109

Keywords

Estate agency

Summary

Property was put in the hands of estate agents by the defendants. The particulars of sale contained an authority-denying clause similar to the one in the Overbrooke case.

'The vendor does not make or give, and neither [the agents] or any person in their employment has any authority to make or give, any representations or warranty whatever in relation to the property.'

The particulars of sale stated that detailed plans had been prepared and approved by the local planning authority for conversion of the dwelling. The estate agents provided to the plaintiff, the eventual purchaser, a copy of drawings, given to them by the vendor, which indicated that a 2-storey building would be permitted at the back of the house. However, the next door neighbour had made representations to the planning department about his rights of light sufficient to have caused previous applications for permission involving the lifting of the roof of the rear portion of the building to be refused. Therefore, when the plaintiff purchased the property he was led to believe that he could build a 2-storey extension when, in fact, he could only build at ground floor level. He sought a reduction in the purchase price on account of the misrepresentation by the agents and the defendant owners counterclaimed for specific performance.

Counsel for the plaintiff tried to distinguish Overbrooke on the grounds that concerned the exclusion of ostensible authority whereas in this case the agent had express authority to make representations.

The Court of Appeal held that it made no difference whether it was claimed that the agent had express authority or ostensible authority to make representations.

'In my judgment there is no warrant for the submission that where authority is direct, any different conclusion should be arrived at. The principal announces to those who are dealing with his agent what are the limits of that agent's authority.' (Lord Justice Waller)