PROPERTY MISDESCRIPTION & THE ESTATE AGENTS ACT 

Today more than ever before Estate Agents are governed on what they can and can’t do when marketing properties and services. There are many rules and procedures to be followed from when an applicant calls for details, to when an agent is actually preparing details and quoting their terms and conditions to the client. Information has to be checked correctly and best relayed to interested parties which includes all visual methods such as photo’s, diagrams, plans, maps and drawings as well as verbal information in the event of a phone call or visit to a client/applicant to talk about a property or related matter.

Gone are the days when an agent can take a photograph and crop it to hide something that may if seen have put you off, just to get your viewing.

The Estate Agents Act 1979 regulates an agents work. Its purpose is to make sure that the agent acts in the best interests of their clients, and that both buyers and sellers are treated honestly, fairly and promptly.

So strict is the act that agents who ignore or blatantly abuse the Act could be banned from working as an estate agent and even prosecuted and fined.

Who is an estate agent

By law, an estate agent is defined, if:

they deal with people who want to buy or sell freehold or leasehold property, in England or Scotland. This includes commercial and agricultural property

they do this as part of a business

they act on instructions from a client.

Under the Estate Agents Act 1979, agents must make sure that everyone is treated equally, fairly and promptly when:

informing clients about offers

informing clients about their services to buyers

They must not:

make misleading statements

falsely describe a property

show bias against potential buyers

Informing clients about offers 

Agents must give their clients written details of all offers received from potential buyers. This information must be passed on promptly. It can be sent by hand, post, email or fax.

Your agent should keep a written record of all offers that they receive and professionally advise you accordingly. It may be that the highest offer is not always the best. Taking in to account the timescale in which you wish to move, a slightly lower (qualified) offer from a buyer who fits in with your plans may be a better option. It may be that your agent finds out that the higher offerer has been on the market for a long time at what is seen as an unrealistic marketing price.

If an agent’s client tells the agent in writing that it isn't necessary to pass on certain offers, then an agent doesn't have to write in those circumstances. For example, this could happen if the client doesn't want the agent to write with offers below a specific price level.

Informing clients about services to buyers

An agent must write promptly to their client when they or a connected person provide services to your buyer.

Your agent will have to be specific about the services they will offer a buyer. For example, an agent might arrange:

a mortgage

insurance

the sale of the buyer's property

a removal service.

If the agent or a connected person will get some benefit from services offered by any other person, they must tell their client about the services. For example, if they get a commission from someone they recommend to the buyer, they will need to write to you, their client about it. They don't have to tell you how much they will be paid.

Making misleading statements

It is illegal to mislead buyers or sellers in any way. Specifically, agents must not give misleading information about:

offers for a particular property, or invent bids

the existence or status of any potential buyer.

A statement that is factually true might be presented in a misleading way. Agents must take care to avoid this.

Examples of misleading statements:

An agent cannot claim to have first time or cash buyers, unless they can show confirmation that they have investigated the facts.

They cannot advertise or claim that they have potential buyers, unless they can prove that this is true. An example would be a flyer appearing through your door stating that the agent has a Mr T who has sold stc and wants 3 bed houses in Your Area when actually no such applicant exists other in the creative imagination of the agent.

Falsely describing a property

An agent must not make a false or misleading statement about a property. This is an offence under the Property Misdescriptions Act 1991. The law applies whether the statement is made:

orally

in writing

in pictures

or by any other method that produces a misleading or false impression.

Avoiding bias

They must not discriminate against potential buyers because they don't want, or might refuse, to take services from them or a connected person.

For example, they must not:

refuse to provide information about a property to buyers

take longer to send property information to specific buyers, compared to others

set additional requirements, as a condition of passing on an offer, eg, forcing them to have a mortgage survey before they will pass on their offer to their client.