Upfront material information: a conveyancing revolution?
It is widely accepted that moving home is a stressful experience. Many people believe conveyancing (the legal process of buying a home) to be outdated and slow. Our Head of Property, Mark Laird, addresses the question “Is conveyancing broken?” and explains the current trend of providing more information to buyers when marketing a property.
Is conveyancing broken?
In short, no. UK government statistics show approximately seventy to ninety-thousand residential property transactions successfully complete each month.
The legal process of buying a property is complex. Conveyancers undertake multiple legal and administrative steps for buyers and sellers. They deal with complex areas of law and an increasing administrative burden under great pressure.
Whilst conveyancing is not broken, that is not to say the process could not be improved.
Upfront material information
One suggested way to improve the conveyancing process is with upfront material information. Providing buyers with more information when marketing a property may lead to increased transaction times and less sales falling through.
The Consumer Protection from Unfair Trading Regulations 2008 define material information as “information which the average consumer needs, according to the context, to take an informed transactional decision”. Providing buyers with this information when marketing a property will help ensure the property is suitable for their requirements. It will reduce the risk of wasted time and costs incurred when buyers discover previously unknown issues during the conveyancing process making the property unsuitable for their needs.
The Consumer Protection from Unfair Trading Regulations 2008
The Consumer Protection from Unfair Trading Regulations 2008 aim to protect consumers from misleading and aggressive commercial practices. The regulations were amended in 2014 and can apply to the sale of residential property.
Recent guidance issued by National Trading Standards provides estates agents and their sellers advice on meeting their obligations under the regulations.
Who are National Trading Standards?
National Trading Standards is a national organisation working across local authorities to protect consumers from unfair trading practices. It tackles issues such as counterfeit goods, scams and rouge traders.
New National Trading Standards guidance
In November 2023 National Trading Standards issued new guidance for sales and letting agents. The guidance seeks to assist agents in complying with their obligations to provide prospective buyers with the material information prior to a sale being agreed.
Will this affect the legal process of buying and selling a home?
Whilst both the regulations and guidance are relatively new, their potential impact on the conveyancing process should not be underestimated. Buyer Beware and the right not to incriminate oneself are longstanding principles in English law.
The Law Society has already announced the introduction of a new Property Information Form to be used by members of it’s Conveyancing Quality Scheme from 25 June 2024. The new Property Information Form includes the material information suggested in the guidance issued by National Trading Standards. It is anticipated that the form will now be completed by sellers prior to the marketing of a property.
The form will help provide more material information to buyers at an earlier stage. However, in incorporating this information into the Property Information Form will also likely lead to an increased number of queries raised by buyer’s solicitors on non-legal issues potential causing additional delays.
Residential property & conveyancing team
At Morrish Solicitors each of our specialist property lawyers have decades of experience in assisting with purchases of residential property and are ready to assist you in buying or selling your home. To enquire about our residential property and conveyancing services please call us on 033 3344 9600 or simply email [email protected] with your request.
Author: Mark Laird, property.
