Changes to the way homes are sold are being rolled out. Whilst it’s good news for buyers, the guidelines mean additional costs for sellers. Simon Nosworthy explains more
For decades buying a property has required the purchaser to carry out various searches to ensure there were no hidden issues that could haunt them down the line.
While the onus has previously been on the purchaser to carry out these checks, this is about to be turned on its head with new guidance from The National Trading Standards Estate and Letting Agency Team (NTSELAT).
This new guidance expects sellers to list a whole range of ‘material information’ – much of which requires the involvement of a conveyancing solicitor – about their property when they put it on the market. While this is good news for buyers, as it will mean less checks for them to carry out, it is likely to cost sellers hundreds of pounds more.
The NTSELAT guidance has long been anticipated in conveyancing circles but has not been on the radar of most home buyers or sellers.
The idea was to clarify what ‘material information’ was required on property listings and to ensure a smooth conveyancing process with hopefully fewer deals falling through.
The guidance promotes the government’s objective to improve the home buying and selling process by ensuring that buyers have information available to them before even viewing a property. It is hoped this will speed up the house buying and selling process.
The release of the new guidance has come in two phases. Around 18 months ago the first part (part A) required property listings to include price, council tax band and whether the property is freehold or leasehold. This did not represent a dramatic change as most estate agents included this anyway.
In November last year two further sections (parts B and C) were announced and this is where the real drastic change came in.
Part B is relatively simple for homeowners – they will have to include information that will be easily available to them such as details of utility supplies, heating and parking.
However, part C signifies nothing short of a revolution in the way properties are sold in the UK and will mean sellers need to employ a solicitor BEFORE they list their property.
The details required include any restrictive covenants – which prevent homeowners from carrying out certain activities in their home – if the property is listed, if there is a tree preservation order and if there are any rights of way, on their property particulars.
Additionally, homeowners will have to carry out environmental and local land charges searches so that details of flood risk, coastal erosion, coalfield mining and relevant planning permissions can be added to the listing.
The seller will also have to include whether the property has been adapted and is suitable for accessibility needs.
Effectively sellers will have to engage with a conveyancing solicitor before they list their property and not when they have received an offer. This means that if a homeowner lists their property and fails to sell it, they will have already spent money on fees and searches. Overall, this could mean homeowners spending hundreds of pounds more to sell their property.
It may also mean that sellers have to adjust their expectations of how quickly a property can be advertised as a large amount of work will have to be carried out before a listing can be collated.
While the guidance was announced in November it appears that the NTSELAT is allowing time for estate agents to be trained before being enforced.
Additionally, very few consumers know about this, but that doesn’t mean that they won’t be made to gather this information on their home in the coming months.
However, it remains to be seen what the housing platforms like Rightmove do about the guidance and if they make estate agents list this information.
While it may be seen as an arduous hurdle for those selling a home, it is good news for buyers and should ensure the whole process is smoother.
It also has the added benefit of meaning there will be no nasty shocks down the line for buyers.
Simon Nosworthy, Head of Residential Conveyancing at Osbornes Law
