Material information? How many times have you heard this phrase in the last few weeks and/or months? Whilst it is getting a lot of traction recently, this is not necessarily fresh news. As set out in the Consumer Protection from Unfair Trading Regulations 2008, estate agents (including lettings agents) are under a legal obligation to ensure that material information is contained in every property listing. Whilst many agents across the industry are committed to providing this best practice, not everyone is adopting the same approach.
So what is material information? In short, it is ‘information which the average consumer needs, according to the context, to take an informed transactional decision’. Trading Standards has divided material information into three parts:
- Part A – considered material information in all circumstances e.g. Council tax band, asking price, tenure
- Part B – considered material information generally where information may involve some cost of maintenance of repair, affect mortgage availability, insurance products or use or enjoyment of the property: Physical characteristics, property type, material type used for construction, number/type of rooms, utilities, heating, broadband speed, mobile signal/coverage, parking restrictions
- Part C – may or may not be established depending on whether property is affected/impacted by issue: building safety, restrictions, rights/easements, flood risk, coastal erosion risk, planning, property accessibility, coalfield/mining area
For more in depth information regarding each ‘Part’, please use the following link: Material Information Guidance for Property Sales (nationaltradingstandards.uk)
Agents can outsource the collation and verification of this information to third party suppliers, where relevant and necessary and taking proactive measures is essential; there is certainly a shift from ‘buyer beware’. Along with the recent introduction of new TA6 (Property Information Form – fifth edition), it is prudent more than ever to ensure that industry experts are working together. This includes working with Conveyancers early in the process. At Priory Law, we actively encourage sellers to onboard with us as a client before the Property is on the market. Not only does this mean we are ‘contract pack’ ready but means we can ensure that we have all the relevant information and any queries by the seller can be answered without delay.
If you would like to find out more about Material Information please don’t hesitate to get in touch via our contact form, email ([email protected]), or give us a call on 01737 457 457.