13 March 2024
The earlier information can be provided in the selling process, the more certainty and control buyers and sellers will have making the conveyancing process simpler and quicker.
Guidelines have been issued to standardise Material Information provided in property listings and improve current practices. This will allow sellers to potentially rectify any potential issues and buyers to make informed choices at the outset streamlining the conveyancing process.
The term Material information refers to any information about a property that could influence a buyer’s decision-making process. This includes information about the property’s condition, history, defects, or any other relevant details that could impact its value or desirability.
Estate agents and sellers are required to disclose Material Information about a property to potential buyers when the property is being marketed. This helps promote transparency and fairness between buyers and sellers and reduces the risk of disputes or legal issues later in the process.
Current practices around disclosure are not consistent across the industry and standardising this essential information will help agents and sellers comply.
The new guidelines issued by The National Trading Standards Estate and Letting Agency Team have three categories:
Category A
Information which is considered essential for all properties (announced February 2022):
- Council tax band or rate
- Property price or rent
- Tenure information (for sales)
- Details of deposit payable (lettings)
Category B
Information that must be established for all properties:
- Physical characteristics of the property – property type and construction
- Number and types of room – including room measurements
- Utilities – how they are supplied
- Parking
Category C
Information that may or may not need to be established.
These details must be included if the property is affected by the issue:
- Building safety, e.g., unsafe cladding, asbestos, risk of collapse
- Restrictions, e.g. conservation area, listed building status, tree preservation order
- Rights and easements, e.g. public rights of way, shared drives
- Flood risk
- Coastal erosion risk
- Planning permission – for the property itself and its immediate locality
- Accessibility/adaptations, e.g. step-free access, wet room, essential living accommodation on entrance level
- Coalfield or mining area
The Conveyancer’s role
Working together with sellers, conveyancers can assist in compiling the presale information before the property is marketed. This will guarantee a seller will have the benefit of appropriate legal advice when compiling the necessary Material Information to be included within property listing. Conveyancers help protect the interests of the sellers whilst ensuring they meet their obligations. Otherwise, instructing non-regulated firms specialising in sale packs and not obtaining suitable legal advice could expose sellers to potential liability.
Reviewing property documentation – A conveyancer thoroughly reviews property documentation including deeds and Law Society Property Information Forms helping sellers prepare accurate and complete information about the property.
Advising on disclosure obligations – Conveyancers canadvise sellers on what information must be disclosed under relevant laws and regulations, such as defects, disputes, or encumbrances affecting the property.
Identifying potential issues – Conveyancers can identify potential issues or concerns enabling them to deal with these proactively. As well as expediting the process when a buyer is found, this will also assist in reduce the number of abortive transactions due issues which can be resolved such as outstanding building regulation approvals or restrictive covenant consents.
By actively engaging in the disclosure process and ensuring that all Material Information is properly addressed, conveyancers help protect the interests of both buyers and sellers and facilitate a smoother transaction.
For further information or advice please contact Samantha Bellia on sxb@blasermills.co.uk.