New Legal Requirements Regarding Material Information Supplied by Estate Agents
Some huge changes hit the real estate market back in November 2023 that you may or may not be aware of. These changes relate to material information supplied by estate agents and the level of detail about the property they need to provide to potential purchasers.
In June 2022, Part A of the Trading Standards reform was put into place. Here it was stated that estate agents must provide material information such as the price, leasehold terms and council tax information on any property that they are listing.
The next stage of this came into force in November 2023, when Trading Standards published parts B and C of their material information guidance. This important next step gave further obligations as to the necessary material information supplied by estate agents. As well as the above, they also need to now include:
- Building materials
- Information about utilities and parking
- Details regarding flood risk
- Information about any relevant restrictive covenants
The purpose of this reform is to provide purchasers with more information at the outset, enabling them to make an informed decision when purchasing a property, rather than simply discovering issues later on in the conveyancing process. Buying a property is likely one of the biggest purchases that most people will make in their lifetime, so as much information as possible should be provided upfront without needing to be requested.
Although very helpful to prospective purchasers, the downside to the new legal requirements is that it puts more obligations on estate agents to find out detailed information about their properties and to also ensure that that information is readily available.
Some of this information, particularly flood risks and covenants, is actually quite technical and something that a conveyancer would usually advise on as part of the conveyancing process. Outside of their remit, this information would not have previously been included in the material information supplied by estate agents. Under the new rules, sellers will now be advised to bring a residential conveyancer on board at a very early stage to make sure that they have all of the necessary information for the estate agent to market the property.
It is crucial that all estate agents adhere to this guidance and put properties for sale online with all the necessary information. If they do not, there will be hefty sanctions to face. This could include everything from fines, through to imprisonment.
Despite this, estate agents do appear to think that this change is a positive step. New research has revealed that more than 80% of UK agents think that providing this information upfront will improve the buying and selling process, as well as limit delays and the number of transactions which fall through at a later date. It’s a win-win situation for everyone.
Historically, sellers would have only instructed a conveyancer when the property had been sold. However, due to these regulations, we are now working closely with estate agents and sellers from the outset, allowing us to create an initial sales pack ready for the property to be sold.
Not only is the agent then able to market the property within the current guidance, but it also means that, as the conveyancing team dealing with the sale, a number of our initial processes have already been undertaken. As soon as a buyer is found we are then ready to proceed quickly leading to an increase in the efficiency of the transaction and a decrease in the time taken to get to exchange and completion. All thanks to the improved material information supplied by estate agents.
Similarly, when acting for buyers, this information will be readily available meaning the buyers will be better informed and the transaction should hopefully proceed smoothly and without further issues.
If you are in the process of putting your house on the market or are looking to purchase a property please contact our award-winning conveyancing solicitors in Plymouth for a quote. You can contact the team by calling 01752 203500 or by emailing enquiries@GAsolicitors.com. You can also use our online form to provide all the necessary information.
Please feel free to also read my other recent articles on climate change and its impact on conveyancing and cybercrime in conveyancing.
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