At last an end to estate agent tricks? OFT clamps down on half-truths in property ads

Published 20th Sep 2011

The days of estate agents’ tricks could be coming to an end, as the Office of Fair Trading (OFT) today issued draft guidelines on banned practices when selling property.

The guidelines explicitly warn agents against boasting of a ‘secluded garden’ when there is a public right of way through the garden, a ‘peaceful area’ when a bypass is planned close to the property, 'nice views of surrounding countryside' when there is a power plant next to the property, or 'off street parking' when the parking is on a public highway.

Estate agents will also be banned from making broad statements about the condition of a property, for example ‘double glazing’ or ‘central heating’ when the description only applies to parts of the property rather than the whole.

Guidelines from the consumer watchdog cover aspects of selling a property, from advertising properties and providing advice to new clients, through to negotiating and making deals and dealing with complaints.

The draft guidance to estate agents and property developers are currently in consultation. It aims to help businesses handling sales of property and land in the UK comply with two pieces of law: the Consumer Protection from Unfair Trading Regulations 2008 (CPRs) and the Business Protection from Misleading Marketing Regulations 2008 (BPRs).

It also identifies advertising practices that breach the regulations.

If you’re selling your home, estate agents will no longer be able to tell you they have sold similar properties recently for a certain price when they have not or that they have potential buyers lined up when they do not.

If you’re looking to buy, estate agents will not be able to give you a broad ‘guide price’ - such as £150,000 to £200,000 when they have reason to believe the vendor has no intention of accepting an offer at the lower end of the range.

The photos you see in estate agents’ windows should also look like the properties on sale. Agents will no longer be able to deliberately miss out unfavourable features – and they must have been taken recently.

Agents who mislead house buyers risk fines or even imprisonment. The business itself, a person in charge, an employee or an associate of the business may be the subject of the conviction, fine or civil court order.

People can also face a prohibition order banning them from working as an estate agent.

Cavendish Elithorn, Senior Director of the OFT's Goods and Consumer Group, said: 'Buying a property is one of the biggest purchases people make and can also be one of the most stressful.

'Unfair business practices can cause substantial consumer harm and this guidance has been designed to help estate agents and property developers understand what they need to do to comply with the law.'

The consultation closes on 9 December 2011.

Source: ' ThisIsMoney '

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