What you need to know about material information before selling

One of the biggest reasons why so many sales have taken longer than necessary - and, worse, fallen through – is buyers often haven’t found out critical information about a property until the transaction is well underway.

Under consumer protection legislation, estate agents are already legally obliged to include ‘material information’ in property listings – that’s information that an average buyer would need to make an informed decision on whether to proceed. But, until recently, it was a grey area because there were no specific details on what was considered ‘material’. So, even when estate agents did their best to be transparent, important information could be left out simply because they weren’t aware it existed. 

The good news is that over the last few years, the National Trading Standards Estate and Letting Agency Team (NTSELAT) has been working with the industry to establish best practice and put together a comprehensive list of the information that should be provided up front to buyers in property listings. Following this guidance should reduce both the time it takes to sell and the chance of the sale falling through, making the whole process smoother and less stressful for everyone.

Although it’s not currently a legal requirement, this is the new industry standard, and non-compliance could be viewed as a breach of the Consumer Protection Regulations.

As such, property portals including Rightmove, Zoopla and OnTheMarket have been updating their software with specific fields for this information. While they may not reject or remove listings that don’t comply with the guidance, National Trading Standards may get in touch with the listing agent. That means estate agents have also updated the list of information you need to give them before they market your property.

What information do I need to provide to my agent?

Material information includes:

• Council tax banding
• Service charges and ground rent for leasehold properties
• Utilities information – such as whether there’s mains gas or if the water is metered
• Any issues with mobile phone coverage – and some online listings now include broadband speed
• Details of parking provision – e.g. allocated spaces and if a permit is required
• Any building safety issues you’re aware of
• Restrictions – such as covenants that might prevent a resident from keeping a pet
• Rights of way over the land
• Planning permissions that could affect the property and enjoyment of it
• Risk from flooding or erosion – have there been any issues in the past?

A good agent will be able to talk you through exactly what’s needed, but NTSELAT has produced this handy guide for sellers that covers not only the information that’s required but also where you can find it.  There may be certain pieces of information you simply don’t know, which is why it’s a good idea to instruct a conveyancing lawyer before you even engage a sales agent. They can request the title deeds and start preparing the paperwork, meaning any factors or issues you don’t already know about can be identified as early as possible. This can save months of your sale! Also bear in mind that you have a legal responsibility to declare any problems with the property that you’re aware of. If you don’t the sale can be unwound in the courts.  

Importantly, none of this is really extra work; it’s all information that would come to light at some point in the sales process. Following the guidance should simply ensure that when a buyer makes an offer on your property, they’re well informed about it and there’s far less chance of them pulling out down the line.

If you have any questions, our sales experts are always here to help. Just get in touch with your local branch and have a chat to one of the team.