I recently attended a seminar from James Monroe of The National Trading Standards Estate & Lettings Agency (NTESELAT) team in a room full of estate agents, where parts A, B & C in relation to material information under the Consumer Protection (from unfair trading) Regulations were discussed. Part A is already in place, Parts B and C are due to be released imminently by NTESELAT.
Like many industry colleagues, I am completely in support of upfront and transparent information for the consumer, because I truly believe that it will help speed up the conveyancing process and reduce fall through rates.
However, my observation from this meeting is that the law is being presented to agents in a way that they are struggling to engage with. This is maybe because change can often be difficult, and also perhaps due to the fact that balancing the knowledge of the law with the ability to sell will always be tricky.
There were questions from agents in the room, (many with years of experience), as to how this all works practically. I expect a lot came away with more questions than answers.
How can you rely on a vendor giving you (or not giving you), information in certain circumstances, but not have the ability to rely upon their information in others? It is a tricky balance to reach. We have to be experts in our area, and in property as a whole but we are not expected to be a surveyor or a lawyer. So how do agents navigate this? In reality, the answer is that we should always question and investigate further.
Today’s agents should be comfortable talking a seller though the most common issues that can arise in a structured way. The use of a fact-finding questionnaire (we have one available for download, or similar documents (such as the Propertymark PIQ), in the eyes of trading standards and the ombudsman is a great step to building a defence should problems arise.
There may be uncomfortable questions that agents need to ask a seller or a landlord, but the Consumer Protection Regulations make it very clear that we must know the negatives as well as the positives about a property to be able to give a buyer enough information in order for them to make an informed choice.
My views are simple. It is not an agent’s job to be a surveyor or a lawyer, but it is their job to present their services and the property available for sale or let in a professional manner. They are more than just ‘listers’; their role is not simply to list the property on a portal, but to offer professional advice and guidance. That includes having an open conversation with a seller who may be aware of problems with their property, and offering them the best solution to achieve their sales goal.
Agents should question sellers professionally, as property experts, and gather as much information as possible. Due diligence at this stage will become increasingly important as the expectations of material information move increasingly into the spotlight.
So, if a seller knows there is a short lease or high service charges, the agent should be thinking what is their advice? Again, the same applies for asbestos, or Japanese knotweed, or if the broadband is poor or the property has no mains services. What advice do they give?
Agents must now pay full attention to all parts of the Material Information guidance. They should question and interrogate further to ensure they work towards successful completions and happy clients, whilst also ensuring they remain fully compliant.
Charlotte Jeffrey-Campbell is a director of The Able Agent
