Homeowners could have to spend hundreds of pounds more when selling their home owing to new Trading Standards guidance, a conveyancing solicitor has warned.
The National Trading Standards Estate and Letting Agency Team (NTSELAT) guidance means homeowners will have to list a whole range of new ‘material information’ ahead of listing the property on the particulars; including any covenants, if there is a tree preservation order and if there are any rights of way.
The guidance could be better news for buyers, who will now be able to access all the information upfront before committing to a purchase.
Simon Nosworthy, head of residential conveyancing at Osbornes Law, is the latest to wade in on the current date, saying
“This guidance is a revolution in the way people sell their homes in the UK. Beforehand the onus was on the buyer to carry out environmental and local authority searches but now this will be on the seller.
“Effectively sellers will have to engage with a conveyancing solicitor before they list their property and not when they have received an offer. This means that if a homeowner lists their property and fails to sell it, they will have already spent a decent amount of money on fees and searches. Overall this could mean homeowners spending hundreds of pounds more.”
The release of the new guidance has come in two phases. Part A was released in July 2022 and requires property listings include price, council tax band and whether the property is freehold or leasehold. In November last year Parts B &C were announced. The second part relates to information such as details of utility supplies, heating and parking. The third part, which includes material information mentioned above, represents the most drastic change and will mean sellers need to employ a solicitor before they list their property.
Simon added:
“While the guidance was announced in November it appears that the NTSELAT is allowing time for estate agents to be trained before being enforced. Additionally, very few consumers know about this, but that doesn’t mean that they won’t be made to gather this information on their home in the coming months.
“However, it still remains to be seen what the housing platforms like Rightmove do about the guidance and if they make estate agents list this information.
“While it may be seen as an arduous hurdle for those selling a home, it is good news for buyers and should ensure the whole process is smoother. It also has the added benefit of meaning there will be no nasty shocks down the line for buyers.”
The release of the guidance has been controversial with figures from across the property sphere debating their various merits. Just last week, The Property Lawyers Action Group, a group saying it represents property lawyers, wrote an open letter to NTSELAT head James Munro. The letter suggests the Consumer Protection Regulations ‘distorts the source legislation beyond recognition’ saying
“The purpose of the CPRs is to protect consumers from unfair practices of traders. As you are undoubtedly aware, the term traders means “a person acting for purposes relating to that person’s trade, business, craft or profession, whether acting personally or through another person acting in the trader’s name or on the trader’s behalf.”
“Whilst there is no doubt that an estate agent could be classed as a trader in this context, perhaps an unforeseen consequence of the guidance is that MI, conversely, extends those obligations to the individual seller of a property, even if the seller is a consumer. It does this by imposing the obligations on the seller’s agent, however, given that the agent acts on behalf of the seller, much of the responsibility for complying with the guidance would indirectly fall upon the shoulders of the seller themselves in practice. The blurring of this distinction is already well illustrated in relation to the “BASPI”, produced by the HBSG which incorrectly states, that disclosures on the part of the seller are required under the CPRs and asks the seller to give a CPRs declaration. This is plain wrong.”
Supporters have said the changes will speed up transactions by collating key information at an earlier point in the process, reducing delays further down the line and identifying potential issues that would otherwise have caused buyers to pull out, reducing fall throughs.
At the point of launching Parts B & C of the guidance, Munro told the Today’s Conveyancer Podcast that the changes presents a “great opportunity for the conveyancing profession to get involved in a transaction at an earlier stage” and collaborate with estate agents to collaborate to create a “limited service” for home movers and estate agents to help them comply with the detail of the new guidance.
One Response
What those jumping on the bandwagon are not addressing is how quickly the information will go out of date and what good is it identifying those issues if you have a selling client not willing to pay for it? I am reliant on my counterpart not being as clued up as me so that the sale will go through.
Whatever happened to “Buyer Beware”? BASPI form is a joke – no one uses it and some of the questions are in breach of CQS rules.
Seriously – “has the property been subject to any crime, burglary or violent death”? “has the property been occupied by someone who has been cautioned or convicted of a serious crime”? Drug Dealers and Murderers: Will you please stand up?