As a property agent, it’s essential to stay up-to-date with the rules and regulations that govern how homes are marketed to potential buyers. One of the key laws in place to ensure fairness is the Consumer Protection from Unfair Trading Regulations 2008. This law sets out guidelines for how properties should be described and advertised, and estate agents must follow these rules to avoid misleading buyers. These rules include:
Descriptions of the property:
Descriptions of the house must always be accurate, which applies to every channel that agencies market the house through, as well as any conversations they have with potential buyers.
Although it is possible that some aspects of a property’s description are open for debate, others are not. For example, there is a clear difference between ‘freehold’ and ‘leasehold’. An estate agent cannot tell you that it is one of those instead of the other.
A way that estate agencies can break this rule is by stating that the house is on a ‘quiet road’ when it is actually located next to a motorway. They also cannot say that the property has been recently renovated if it simply has not.
Being upfront about the property:
Estate agents have a responsibility to share any information that could influence a buyer’s decision to purchase or live in a house. For example, they should let buyers know about upcoming construction in the neighbourhood, nearby schools, or traffic issues.
For leasehold properties, agents must disclose information about ground rent, length of rent remaining on the lease, service charges and any extra charges that might apply upfront.
The National Trading Standards discovered that 9 in 10 people said that a basic list of information about a property would improve clarity in the industry. This shows how important it is for agents to be transparent with their buyers and vendors.
Passing on all important information:
This topic covers a broad range of subjects, and can come with the added complication that sellers are sometimes dishonest about some details. Paying for a survey and carrying out searches is recommended for potential buyers.
A few of the many subject areas that estate agents should pass on to buyers include:
- Planning permission on the property
- Plans for development in the area
- Structural information, such as subsidence or flooding history
- Nearby amenities
- Any ongoing disputes with neighbours
- The presence of mould or damp
- Presence of pests
- History of asbestos anywhere in the building
As a buyer, it is best to ask the estate agent about these matters. Legally, they cannot lie to you, but if you find them providing evasive answers then it may be worth investigating further.
Passing on all offers and not showing bias:
Property agents must inform a seller of all offers in a timely manner unless the seller requests not to be informed. And it goes without saying that agents must treat all buyers the same way; without discrimination.
Not forcing the buyer to use a specific conveyancer:
In the past, there have been stories of estate agents trying to gently force buyers to use a specific conveyancer. This will often be one that the estate agency personally recommends.
This is not legal.
The buyer is free to use whichever conveyancer they wish, and they do not have to use the same conveyancer as the seller.
Global House Estates is proud to deliver you an exceptional service, and abides by any and all legal standards. If you have any questions about the above, please do not hesitate to contact us on 0207 4012020, or email us at enquiries@globalhouseestates.com.