Many agents will already be aware of their obligations to provide consumers with Material Information in property listings, however the National Trading Standards Estate and Letting Agency Team has issued further guidance on this topic. This post explores the Consumer Protection from Unfair Trading Regulations 2008 (“The Regulations”) and the duty of disclosure of Material Information which Agents need to be aware of.
What is Material Information?
Under the Regulations it is defined as “information which the average consumer needs according to the context, to take an informed transactional decision”. Examples of information a consumer would need could include things such as property information, legal restrictions, utilities and costs, etc. Each of these examples highlights essential information that the consumer would need to look at when making an informed decision about whether or not to proceed.
Clients should be informed that including Material Information on listings is a requirement and steps should be taken to guide them through the process. If a client becomes aware of Material Information, it should be disclosed as soon as possible.
As good practice, agents should obtain all necessary information from the client at the outset of the instruction.
Material Information Parts A, B, and C
Part A Information
Information for Part A should be displayed clearly on the property listing.
Part B Information
Information for Part B does not necessarily need to appear on the first page of a listing but should still be easily visible and accessible, especially if it involves potential maintenance or repair costs.
Part C Information
Information for Part C are the newer addition and slightly more complex compared to Parts A and B. Whilst you and the client may not be experts in the fields contained in Part C, if an issue is identified, further advice can be taken at the necessary stage. Property listings will only need to include this information if the property is affected.
Energy Performance Certificates (EPC)
EPC ratings fall outside the scope of the Regulations, however Agents will be aware of their obligations to provide this in property listings.
Our range of Property documents contains updated Terms and Conditions as well as detailed Guidance Notes for Estate Agents and Lettings Agents on the best practices your agency should follow when it comes to Material Information.