The basis for the upfront provision of information is so that buyers have better visibility of whether a property is suitable for them or not.
The rules are set out in three stages, and to date only Part A is applicable.
Part A provides that when marketing a property, estate agents must list the property, tenure, sale price, council tax band, rent and rental deposit for lettings; as well as the percentage share for shared ownership properties.
Recent communication from National Trading Standards suggests that the other phases of the material information rule, namely Parts B and C, are expected to be published this Autumn. These phases will include material information such as non-standard construction, restrictive covenants, easements, building safety provision, utility information, flood risk and other specific factors that may impact certain properties.
To date, no further guidance has been provided by National Trading Standards. Clearly, they are seeking to make sure that the industry guidance is accurate and that estate agents will be able to deliver upon the new rules, in respect of Parts B and C. Failure to comply with these rules is a criminal offence.
Whilst such rules are likely to come into place, a call for mandated common digital standards by the Digital Property Markets Steering Group (DPMSG) has not, to date, obtained any legislative backing.
The DPMSG is focused on the adoption of digital technology in order to improve data accuracy and to speed up housing transactions.
The DPMSG is an offshoot of the Home Buying and Selling Group, which has a broader brief to improve the process for home movers.
It is clear that there is a trend towards the provision of upfront information to be provided at the point of marketing the property, in addition to the Energy Performance Certificate. This is designed to speed up the process, avoid properties being mis-sold and to help reduce abortive transactions. The current trend echoes Home Information Packs which were implemented and then abolished.
It is yet to be seen as to whether the guidance provided by National Trading Standards is sufficient in order that estate agents will be able to deliver the requirements of material information or whether they will revert to solicitors or other parties in order to outsource their obligations.
It is not clear how many estate agents will be able to identify and list restrictions relating to covenants, easements, rights of way, implications from the Building Safety Act and estate rent charges to name just a few; especially where the title may not be registered or straightforward.
For upfront information (digital or otherwise) to become standard and widely adopted, The Government will have to enact legislation. This looks unlikely following the kings speech on 7 November 2023. In the interim, the burden of speeding up housing transactions appears to rest with estate agents being able to comply with the proposed material information rules accurately and speedily.
For further formation regarding residential conveyancing law, please do not hesitate to contact our Mr Bill Dhariwal, Director and Solicitor on DDI: 01489 864 117 or Email: bill.dhariwal@lawcomm.co.uk
The contents of this article is for information only and does not constitute legal advice.
