Are you looking to buy a house in the UK?
When you enquire about a property that you are interested in, you will likely be dealing with an estate agent. This professional is representing the seller and must follow certain legal obligations.
Lots of people do not know what their rights are when communicating with an estate agent about a house transaction.
We’ve explained what the estate agent can and cannot do in the article below.
1. Descriptions of the property
Descriptions of the house must always be accurate. This applies to every marketing channel that you promote the house through. As well as conversations you have with the estate agent.
Although some aspects of a property’s description are open for debate, others are not. For example, there is a clear difference between ‘freehold’ and ‘leasehold’. And an estate agent cannot tell you that it is one of these, if it is actually the other.
There are plenty of more common ways that estate agents break this obligation. Stating that the house is on a ‘quiet road’ if it is next to a motorway would be an inaccurate description. Likewise, they cannot say ‘recently decorated’ unless this is true.
Square footage is another contentious topic. The estate agent usually hires someone to calculate this figure. If it is wrong, you can act.
2. Passing on all important information
Estate agents are required to pass on any information that the buyer needs to know.
This covers a broad range of subjects, and comes with the added complication that sellers are not honest about every detail. Paying for a survey and carrying out searches is recommended for potential buyers.
A few of the many subject areas that estate agents should pass on include:
- Planning permission or plans for development in the area
- Structural information, such as subsidence or flooding history
- Nearby amenities, such as schools or transport
- Ongoing disputes with neighbours
- The presence of damp or mould
- Presence of pests (including rats, insects, and more)
- History of asbestos in the building
As a buyer, it is best if you the ask the estate agent about these matters. They cannot lie to you, so if you find them evasive, it may be worth investigating further.
Estate agents must pass on important information quickly. This means they can’t leave it until it is too late for the buyer to pull out to tell them information that affects their decision.
3. Responding in a prompt manner
This is an area that is far more difficult to define. You would struggle to act against an estate agent for ‘inefficiency’.
As we have explained below, estate agents must pass on offers to the seller. They must also give you important information before it’s too late, as we’ve explained above. If they violate either of these guidelines, you will be able to take action.
If you unhappy about slow responses, but there is no consequence, your estate agent is not breaking any laws. Professionals in all industries can get ‘snowed under at work’.
4. Passing on offers to the seller
When you make an offer on a house, the estate agent is obligated to pass this onto the seller. This must occur even if the seller is progressing with a deal with another buyer. Unless contracts have exchanged, the estate agent must still pass on the offer.
The only exception is if the seller requests to not hear certain offers. For example, they may ask the estate agent not to pass on offers that are below a certain amount.
5. Not showing bias against any of the buyers
Estate agents are required to not show bias for or against any of the potential buyers. All parties are equal.
For example, estate agents cannot ask one buyer to get a mortgage in principle, but not have this condition for others.
Estate agents can’t refuse to pass on information to a particular buyer. They also mustn’t delay sending on requested information with one buyer, compared to others.
To reduce the risk of bias, estate agents must declare if they are connected to a party in the sale.
6. Not forcing the buyer to use a specific conveyancer
In the past, there has been stories of estate agents trying to force buyers to use a specific conveyancer. This will often be one that the estate agency themselves recommends.
This is not legal. The buyer is free to use whichever conveyancer they wish. They don’t have to use the same conveyancer as the seller.
What can I do if an estate agent breaks one of their legal obligations?
If your estate agent is not fulfilling their obligations, you are not powerless.
The first step should be to bring up the issue with the estate agent themselves. Get their response on the matter.
After this, if the situation is not resolved, report them to the relevant regulatory body.
If they’re a member of the Property Ombudsman, report it to them. The Property Redress Scheme may also be applicable, too.
The body will look into your complaint and act. Liaise with them on what this might look like.
You can sometimes receive financial compensation. For example, if an estate agent misbehaves and costs you a large sum.
This applies if it affected the selling price or left you homeless. Find a solicitor to support you with a claim.
