Following the release of Material Information Parts B & C, iamproperty’s Product Manager, Tania Bonesi, shares insights on how Estate Agents can capitalise on the opportunities presented by the new requirements.
What’s included in Material Information Parts B & C?
Part B includes information that applies to every property, such as utilities, parking, whether there is broadband or cellular coverage at the property, and any restrictions that may apply. Part C includes anything that may or may not apply to a property, such as whether there is a flood risk or any potential risk of coastal erosion that may impact the property.
A huge opportunity
If agents use these new requirements to gather all the necessary transactional information upfront, it will speed up transactions, reduce fall-throughs and they’ll get paid quicker- all while staying compliant.
Ensuring all information is available upfront also encourages clients to appoint a conveyancer from their local network sooner. The conveyancer can then investigate any potential issues that might slow down the process, from the start. If agents can advise their clients to reach out to a conveyancer earlier on, this will help to streamline the process and avoid delays caused by missing or incomplete information.
Lastly, more information upfront leads to a better chance of attracting the right buyer for the property from the off, as they are aware of everything about the property from the very beginning of the process, meaning a much lower risk of fall through.
What are the benefits for Estate Agents in implementing the requirements?
The new guidance helps to support agents in remaining compliant and ensuring that they are protected in line with the National Trading Standards Estate and Letting Agency Team’s (NTSELAT) advice, should a complaint against them ever arise.
If a complaint is raised, fines can be imposed for non-compliant agents. If agents can ensure that they have the policies and processes in place to ensure all the necessary upfront information for a property is gathered in line with the Material Information requirements, then they are protected.
Implementing the requirements according to the guidance can also help agents win more business, by allowing them to demonstrate that they are well-informed on the required legislation and are fully compliant. This will help to build trust with vendors and buyers, as it ensures transparency from the beginning.
Furthermore, it can also contribute to a lower rate of dis-instruction as vendors are less likely to want to resubmit the information and change agents once it’s been completed.
Upfront information does work!
Auction is a prime example of the positive impact upfront information has had on property transactions.
The Modern Method of Auction’s 56-day completion timescale would not be possible without collecting and making information available upfront, supporting vendors with speedier and more secure sales – and faster payments for agents.
Also, in Scotland, the Home Report shows that Material Information regulation hasn’t affected the number of properties being listed but it has reduced the number of fall-throughs by 60%. This, in turn, has decreased dis-instructions.
Leverage technology to capitalise on Material Information opportunities
For Private Treaty transactions, innovations like iamproperty’s movebutler solution allows agents to seamlessly complete the end-to-end onboarding of vendors, carry out the due diligence required for the transaction, and configure the solution to include any additional services they would like to offer their clients, including additional referral fees for conveyancing and surveys. Recently updated with Enhanced PIQ forms incorporating Material Information requirements, movebutler digitalises the onboarding process, making it easier to share information with potential buyers.
In summary:
The release of Material Information Parts B & C offers Estate Agents a huge opportunity to speed up transactions, reduce fall-throughs and get paid quicker- all while staying compliant.
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Lets stop mucking about and re-introduce Home Information Packs with an upfront condition report then we will really be in the business of speeding up the process.
We provide a contract pack - it reduces the time to move in by two months
"Once the guidance becomes law, fines will be imposed for non-compliant agents. "
What 'expert' wrote this? It is the law now!
New guidance on the law came out in November 2023
Since the introduction of the Consumer Protection from Unfair Trading Regulations in 2008,
all businesses in the UK have been under a legal duty not to omit or hide information which is
material to a consumer’s transactional decision.
It’s already the law and has been since 2008!!
NTS are seeking to provide some “guidance” on what material information should be “mandatorily” included on listings and the portals and CRMs will need to include - there are plenty of other aspects that the courts might decide are material information and agents should be live to.
Caveat Emptor may not be dead but it is certainly ill, possibly terminally!
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