BLOG: ‘The burdens of material information rules will get lighter’
Landmark boss Ben Robinson says that despite the requirements of the new rules being burdensome, technology is coming to the rescue.
As we all know buying a home is one of the most significant investment decisions anyone can make and having the right information early on is critical for a smooth transaction.
In the initial stages of the home-buying and selling process estate agents play a key role, ensuring the process is as simple and as seamless as possible; helping consumers navigate the evolving housing market whilst fostering trust and accountability between buyers and sellers.
BUILDING TRUST
Material information is central to this. Building trust and creating transparency for movers – mitigating the apparition of issues later down the line that could derail a transaction. Despite this the importance of comprehensive Material Information is often underestimated due to its complex nature.
Put simply, material information is the requirement to specify all known details of and information about a property to prospective buyers that could ultimately impact their decision to purchase. It is governed by two key standards.
Firstly, the Consumer Protection from Unfair Trading Regulations (CPRs) 2008 sets out the legal obligation agents have to ensure material information is not omitted from property listings and is readily accessible.
Secondly, the National Trading Standards Estate and Letting Agency Team have set out requirements under three separate sections – Parts A, B and C.
Whilst Part A includes essential details like the asking price, tenure and council tax, Part B encompasses physical characteristics such as property type, floor plans and parking. Part C covers critical issues like coastal erosion risks, planning developments and building safety issues.
TRANSPARENT PROPERTY DEALINGS
This is the cornerstone of transparent property dealings, impacting everyone involved along the transaction pipeline – buyers, sellers, estate agents, solicitors and conveyancers.
Some agents may fear that disclosing every detail early on in the process might deter potential buyers, especially when less appealing aspects of a property are revealed. But the reality is that early transparency actually streamlines transactions.
By providing accurate and truthful information – and highlighting unique selling points – estate agents can attract the right buyers. In turn this can make for a more seamless viewing process, facilitate smoother negotiations, save time, money and resources as well as foster more successful completions.
DAUNTING
Despite its importance, providing comprehensive material information in full can be daunting. Failing to do so can lead to severe consequences for agents, including legal action, fines, sanctions from trading standards and reputational damage.
And sellers who fail to disclose comprehensive material information may face legal action from buyers post-purchase.
Understanding what qualifies as material information is important for all parties involved in a property transaction to ensure decisions are made on a foundation of trust.
WELL-INFORMED
For estate agents the legal and ethical challenges in gathering and presenting Material Information – ensuring all parties are well-informed, supporting the wider home moving process – are numerous.
Innovation within this process – which currently relies heavily on outdated, paper-based forms – will considerably speed up transactions and improve reliability.
Automation can dramatically improve the entire process.”
Automation can dramatically improve the entire process. For our own part, our digital material information Questionnaire (MIQ) simplifies the process, presenting only the questions relevant to the property, removing those not applicable based on previous answers given.
For example, if the property is freehold, leasehold questions don’t appear. This smart, digital approach minimises delays and potential errors associated with traditional methods.
By leveraging tools like MIQ, estate agents can ensure they meet updated Consumer Protection Regulations whilst protecting their businesses and providing the highest level of service to their clients.
This approach safeguards the interests of buyers and sellers and, through transparent property dealings, elevates the standards of the entire industry.
Ben Robinson is Managing Director of Landmark Estate Agency Services
