The Ethics of Home Selling - Should You Reveal Every Flaw?
When you live in a property for a number of years, you get to know it intimately, warts and all. But what if you know something about your home that might put a buyer off? Should you keep it a secret, concealing that which you know could reduce any offers you might receive?
Contrary to the common opinion that estate agents are often untruthful in their marketing of properties, there have long been regulations in place to prevent lying in property marketing. Known as the Property Misdescriptions Act, agents were prohibited from telling any little fibs when marketing a property to make it seem more attractive to a buyer; in short, don't lie!
The onus was on the buyers to ask the right questions to get to the bottom of what they were buying. Known as Caveat Emptor, which means 'Buyer Beware' - essentially, it was up to the buyer to check everything out and tough luck if you get it wrong.
These regulations have since been replaced with the Consumer Protection from Unfair Trading Regulations, known as CPR, which aim to give more transparency when buying a property.
According to National Trading Standards (NTS), "estate and letting agents have a legal obligation not to omit material information from property listings", so a seller or agent must provide any information up front that may impact a decision to buy. This is known as 'Material Information', meaning information that is material to the decision-making process.
When is the decision to buy made? In the eyes of these regulations, that decision is at the start of the search before booking a viewing appointment. Therefore, there are key pieces of information that must be included in the online marketing of your property. NTS says that "any information provided in a property listing must be accurate and truthful, and not misleading."
So, what can you do to help the process? An agent will ask you to complete a Property Information Questionnaire before you begin marketing, allowing you to detail anything that you think will cause a problem later on. Being as detailed as possible here will undoubtedly help.
You could obtain your title deeds to show where the boundaries are for your property and any covenants or easements that might affect the property. It is also helpful to provide a council tax bill and details of your utilities. If you are selling a leasehold property, supply a copy of the lease documentation. It might also be relevant to share any certificates for works carried out on the property and information about things like flooding, mining or coastal erosion, if applicable.
It really is better to deal with any potential issues head-on. These things will almost certainly be uncovered by the solicitors after an offer has been accepted; only by that time both you and your buyers will have made some financial commitment to the sale, so it will cost everyone involved for an abortive sale if the buyers withdraw. If you are transparent from the outset, the buyers will be aware of any issues, and you will greatly reduce the risk of a sale falling through.
It's important to note that something that may seem like an issue to you might not even be a concern to some buyers, so try not to worry. Talk to our team if you are concerned that something about your home may put a buyer off. Years of experience and local knowledge will mean that it is highly likely we have already sold properties with the same issues and are here to help.