Buying a property is the most significant purchase that the vast majority of us will make in our lifetime. It’s a decision that demands careful consideration to ensure that you make the right choice. Stephen Ward, Director of Strategy and External Relations at the Council for Licensed Conveyancers, explains
So, it is vital to gather as much information about a property as early as you can so that you can weed out the unsuitable ones and focus only on those that tick all your boxes.
In the trade, this is called “material information” – that is, everything the average consumer needs to know to make an informed purchase decision. Estate agents should make this readily available to prospective buyers, but if it isn’t then don’t be afraid to ask. It is your right to request this information.
It is in the interests of sellers to share this information early on in the sales process, with research showing that cross-industry collaboration and the sharing of information has the potential to cut completion times and the number of agreed sales that fall through, making it a huge benefit and comfort for all involved.
It also saves buyers and sellers from wasting time and money when a property turns out to be unsuitable in ways that should have been obvious from the start.
What is material information?
Broadly speaking, the material information that should be provided for all property listings is:
- Purchase price
- Council tax band
- Tenure – ie whether the property is freehold or leasehold, including details of any additional costs such as ground rents and service charges
- Type of property – ie semi-detached, bungalow or flat
- Number and type of rooms
- Floor plan and dimensions
- Utilities such as water, electricity, gas and internet access
- Any rights or restrictions which would affect someone living at the property.
Material information should be readily and prominently available with all property listings, whether these are on estate agents’ own websites, portals like Rightmove and Zoopla, or in printed literature.
Indeed, agents who fail to do this could face even harsher sanctions than before under new legislation. The Competition and Markets Authority (CMA) now has the power to issue fines directly, and these can be anything up to £300,000 or 10% of the estate agent’s turnover.
Under CMA rules, unfair trading practices are also prohibited and therefore punishable, including failing to disclose relevant information that could be material to a prospective buyer’s decision.
Why buyers should always ask
Is there a restrictive covenant on the property which could, for example, prevent you from building a planned extension or running a business from home? Is there a right of way through your land or is it at risk of flooding? Are all the utilities hooked up to the mains supply or will you have to pay to get them connected?
These are just a few examples of issues where knowing the material information about a property upfront, at an early stage, is likely to save you a lot of unnecessary time, expense and regret.
Some property listings already include some or all of this, but if it is not available upfront, potential buyers should not be shy about asking for it early on, ideally in writing to the estate agent or seller. After all, it will help you make one of the biggest decisions of your life.
If you haven’t already, consider also instructing a Licensed Conveyancer at an early stage in the process who will do all this for you and ensure that the necessary searches and enquiries are made.
Digitisation is transforming the industry, and we will likely reach a stage in the future where all of the information you need to know will be instantly available at the touch of a button.
Until then, however, it is the duty of the estate agent to provide all this information at the outset and it is your right to ask questions if it is not available.
You can find a list of CLC-regulated conveyancers in your area at clc-uk.org/find-a-clc-lawyer
First Time Buyer is an exciting bi-monthly glossy which takes a stylish and comprehensive look at all the options available, setting them out in an entertaining and informative way, and helping potential customers navigate their way through what is often a daunting and complex process. We dispel the myths, reinforce the facts and arm the reader with the tools necessary to make their homeownership dreams a reality.
