The days of estate agents singing a property’s praises without mentioning its drawbacks are over. At least, that’s what the Office of Fair Trading has ruled in new guidelines aimed at ensuring buyers are given full and honest details.
In the past, it was up to the buyer to ask the questions. The seller or agent did not have to volunteer every detail about a property — their only obligation was to give truthful answers.
Now the onus is on the agent to be frank and disclose any information that could affect a decision — not only to purchase but even view in the first place.
New house buyers' rights: The onus is now on the agent to be frank and disclose any information that could affect a decision
This means that agents and sellers will need to give more detailed descriptions on websites and during early telephone conversations. This applies to letting agents and landlords, too.
Here — with the help of Christopher Hamer, the Property Ombudsman, and Mark Hayward, of the National Association of Estate Agents — we look at what buyers must now be told.
Planning orders
Any applications for planning permission or proposals for development or construction nearby must be revealed early on. For example, if there is a planning order for 1,400 houses to be built on fields near an idyllic cottage, the buyer should be told before travelling to view it.
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The local area
If there is a power plant or electricity sub-station nearby, agents must inform buyers before a viewing. If the property is within sight of a motorway or under a flightpath, this should also be highlighted.
The street
Buyers must be told before going to a viewing if there is a school next door, a nightclub down the road that closes late or a halfway house.
Noisy neighbours
Problem neighbours are a grey area. What might seem noisy to some may not be a problem for others.
However, if the buyer asks about the neighbours and the agent knows there is an eccentric man living next door with barking dogs, they should say so. Sellers should note neighbour disputes in the property information questionnaire.
Crime
Information in the public domain about a neighbour with an ASBO should be mentioned before the sale is completed. Likewise, if agents know there has been a string of burglaries nearby, they should point this out. If there has been a murder or suicide in the property, the buyer should be told.
Failed sales
If several sales have fallen through, it is the agent’s responsibility to look into why and pass on the information.
If a buyer pulled out after a survey revealed the roof needed extensive work, for example, other buyers should be made aware of this.
Suspicions
Agents must allay their own suspicions. For example, if they suspect an extension might not meet building and planning regulations, they need to investigate and inform the buyer.
Green deal
Sellers must tell buyers if the property has a Green Deal loan attached to it.
When you sign up for home improvements, such as loft insulation, under the Green Deal, you repay the money through your electricity bill. If you move, the loan stays with the property and is taken over by the new owner.
Accurate photos
Pictures must portray properties and locations realistically. This means photos that do not show a nearby motorway may well be considered misleading.
The rules, which come under the Consumer Protection from Unfair Trading Regulations, were first drawn up in 2008, but will be more rigorously enforced. If you feel you have been misled or treated unfairly, contact the Property Ombudsman, who can force rogue agents to pay up to £25,000 in compensation.