Under the Unfair Trading Regulations 2008, estate agents have a legal obligation not to omit material information from property listings, but disclosure of some information is not consistent across the industry.
Buying a property is one of the biggest purchases an individual will undertake in their lifetime. The process will start online looking at properties and reading property particulars. However, quite often, buyers will discover material information about a property after they are quite a way down the road in the conveyancing process. The effect of this means buyers pull out of the purchase which then has significant financial and emotional effects on all of the individuals involved in the chain.
Therefore, Trading Standards have sought to address this issue by publishing guidance in November 2023.
This guidance encourages estate agents to ensure they proactively request material information to create property particulars. It also requires estate agents to verify the information that is provided to ensure it is accurate. This includes checking ownership of the property to ensure the individual has the right to sell the property. Property questionnaire may also be required to request the details needed to list the property.
There are three categories of information which may be considered material.
Part A
Part A covers information that regardless of outcome, is material information in all circumstances. This information includes:-
- Council Tax Band
- Asking price
- Tenure
Part B
Part B covers information that should be established for all properties and is considered material information generally where the information may involve some cost of maintenance or repair, affecting mortgage availability or affect the availability of relevant insurance products, or affect the use or enjoyment of the property. This information includes:-
- Physical characteristics of the property
- Property type
- Material type/ materials used in construction
- Number and types of rooms
- Utilities
- Heating
- Broadband speed
- Mobile signal coverage
- Parking
Part C
Part C covers information that may or may not need to be established depending on whether the property is affected or impacted by the issue. This information includes:-
- Building safety
- Restrictions
- Rights and easements
- Flood risk
- Coastal erosion risk
- Planning permission or proposal for development
- Property accessibility/Adaptions
- Coalfield or mining area
It is quite clear from the above that most of this information estate agents will not know about. Trading Standards have acknowledged this and note estate agents cannot interpret title deeds or make judgements on building safety. Where this information is required, Trading Standards recommend that sellers should seek the services of qualified professions, which will be solicitors and surveyors.
Practically, this means sellers are encourages to engage a solicitor before the property is marketed. Sellers may also need to think differently about surveyors. The services of surveyors will be required by some sellers given some of the information listed above in Parts B & C.
For more information or to discuss buying or selling a home, please contact Sophie Wakelin.
