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CPR Training; test yourself with our case studies

25th June 2018

In 2014 The Consumer Protection from Unfair Trading Regulations (CPRs)  superseded the repealed Properties Misdescriptions Act. 

CPRs require estate agents to establish material information up front when it comes to marketing property. Material information is information about the property which could affect any decision to buy it.

Critically the liability for providing this information lies with BOTH the estate agent and the vendor(s).

Although regulated by the National Trading Standards Estate Agency Team (NTSEAT) CPRs have come under to spotlight in 2018 as The Property Ombudsman and the Advertising Standards Authority have both been called upon to adjudicate in cases where complaints have been made regarding the transparency of information provided in a property transaction; their decisions often cite failure to protect the consumer under the CPRs.

And with failures resulting in financial penalties and reputational damage, CPRs are well worth taking into account when marketing your properties.

Try our latest case studies for yourself… read the context, consider the options and click to reveal the outcome

 

Case Study: HS2 derails prospective purchase

A couple were concerned that the house they were interested in was close to the proposed HS2 train route. In their complaint they claimed that having asked the question of the estate agent they were advised it was not. They proceeded with the transaction until it was revealed in the searches that the property was just under ½ mile from the proposed HS2 route.

They withdrew from the transaction and sought redress for the £1200 they had spent on the survey and legal costs.

In their defence the agent claimed it was their policy to direct people to the HS2 website when such queries arose, and disputed that they had told them there was no issue. The agent also cited the signage nearby to the property protesting against HS2 as evidence the buyers must have known there may have been an issue.

CLICK HERE to reveal the outcome

 

Case Study: Did agent earn their “performance fee?”

A vendor markets their property with an agent who offered a pay monthly service with “no hidden charges, no commission, no minimum term.” The property received an offer for over 10% more than the asking price, triggering a “performance fee” in favour of the agent. The vendor disputed that they had not been made aware of the fee and complained to The Property Ombudsman.

In the estate agent’s defence, the fee was listed in their terms and conditions, although it did not feature in their “Fees and Charges” section, nor on their website which prominently boasted of their “no hidden charges, no commission, no minimum term.”

CLICK HERE to reveal the outcome

 

Case Study: When is a loft conversion not a loft conversion?

The buyers were specifically interested in a 3 bed property and had made this clear to the agent. The property in question was a 3 bed property, but one of the bedrooms was a loft conversion. Once a survey was commissioned it revealed that the loft conversion did not have a building regulation certificate and therefore could not be classed as a bedroom.

Furthermore the surveyor could not confirm whether the conversion had been constructed to the standard required to achieve a certificate. As a result the buyers pulled out seeking recompense for the unnecessary cost incurred explaining that they would not have got as far as putting in an offer had this information been available at the outset.

CLICK HERE to reveal the outcome

 

Make sure you are asking the right questions of your clients, and documenting their response. Compliance Packs from Landmark are a simple pay-as-you-go compliance tool to help agents fulfil their obligations under CPRs and AML.

Compliance in a Box includes an electronic property information questionnaire alongside client verification checks and retains a time and date stamped audit trail of all compliance activity.

For more information please complete the form below, or contact Compliance in a Box on 01524 220013

Register your interest today

 

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