Julie Williams, Head of Service Delivery at Complete ASAP addresses the impact of the full Material Information guidance
The recent release of the full material information guidance from National Trading Standards (NTSELAT), means that the conveyancing industry (encompassing all stakeholders), must collectively take stock of where it is today, and address how it will embrace the changes that lie ahead. By supporting these changes, I believe that we will see transactions being sped up with far lower fall-through rates. This is because complexities will be identified earlier on in the process – enabling solicitors to focus on key issues quickly.
Having advance notice of potential issues with a property, the agent and conveyancer can work together with the seller to address and overcome those problems, avoiding unnecessary and often time-consuming delays in the transaction. Fostering strong relationships with all stakeholders will – in my opinion – also work towards improving the whole property buying process.
ASAP is a national sales progression business. Because we work with agents, brokers and solicitors, we have a broad view of what is happening in the sector, and the sentiment that transactions are currently taking too long – across the board. We are naturally fully supportive of the NTSELAT guidance, and all it is trying to achieve. From the thousands of transactions we are involved in, and the issues that are encountered, we can see – at first hand – the benefits of having transparency of material information as early on in the sales process as possible.
Buyer Information packs
In March 2024, we launched an all-encompassing Material Information solution, which is set to have a real impact when it comes to improving transaction times and spiralling fall through rates.
With the aim of ensuring the estate agent remains compliant at every stage, we will order all of the property title and information documents while a sales progressor works with the vendor to complete a full digital Property Information Questionnaire (PIQ). Within two to three days, the agent will have a comprehensive Buyer Information Pack for a specific property.
By making this available to the seller’s appointed solicitors at this early stage, a check of the title and information forms can quickly identify potential buyer enquiries that can be readily addressed with the seller avoiding lengthy legal correspondence further down the line. Examples would include requirements of management companies, buildings affected by issues arising under the Building Safety Act or obvious defects in title, all of which often result in protracted enquiries and delays.
Ensuring successful adoption
Education, education
I firmly believe that there must be an education piece in the public domain. There should be a greater appreciation of the home buying process, for example simply understanding the differences between purchasing a freehold house or a leasehold flat and the obligations and responsibilities of each.
The process itself is not complicated and yet there are so many ways of conducting it. A framework of best practice exists but depending on your regulatory body, for example the SRA or CLC, this framework may vary.
Material Information is just one aspect where we can improve the home moving experience. Other initiatives such as property logbooks and reservation agreements could also be vital as we progress. The more information that can be provided to a potential buyer at the outset for them to make an informed decision on the purchase, and for the lender to consider on the mortgage application, the less chance of fall throughs occurring. Additionally, with more information provided to a firm of solicitors by the agent at the outset, they are able to evaluate the information, and conduct a risk assessment to ensure that the person with the right level of experience is assigned the file.
There should also be one agreed standard for ID/AML and source of funds evidence, which is deemed acceptable to all parties in the transactions, without the need to duplicate the process.
Better communication – clients and agents
The fact that – as an industry – we are now being given greater depth of information should drive the need for more collaboration with companies that can support agents in how best to navigate the guidance. Part C, as an example, can be quite complex in places, so it is vital for agents and experienced solicitors to work collaboratively.
Technology is the future
The sector has been traditionally slower to adopt new technologies. But now is the time to adapt to consumer trends and to embrace technology. From self-service conveyancing quotes online to managing the entire home mover journey, we need to be able to seamlessly join up all of the separate moving parts of the process.
Visibility of these steps along the way is also vital. The information needs to be openly shared with all parties in order to create one constantly updated source of the truth. As a result, complexities will be identified quickly and more easily ironed out, and we’ll see a positive impact on fall throughs and transaction times.
Communication is key in the home moving process and with the ‘always on’ culture we now live in, we need to allow access to information and the ability share it anytime and on any device. Now is the time to think differently. Now is the time to embrace the new future.
