X
etsos

Free trial Sign-up

Please leave your name and email and we'll be in contact shortly.

Name

Company

Contact Number

Email

Please complete the sum:        
41 + 2 =

CPRs; the implications

3rd August 2018

In 2014 The Properties Misdescriptions Act was repealed and replaced with the Consumer Protection from Unfair Trading Regulations, otherwise known as CPRs.

The main change was a shift in focus away from caveat emptor, or buyer beware, to greater transparency for those involved in the purchasing or renting of property where agents are historically famous for flowery language and an economic use of the truth!

The acid test of compliance with the CPRs is whether the customer has been treated fairly…

When it comes to instruction, transparency of fees and services is critical to enable a fully informed consumer decision.

And when it comes to sales and lettings no longer is it just the responsibility of the buyer/tenant to ask the right questions. The responsibility for providing information which could affect any decision to buy or rent falls on both the vendor/landlord and the agent.

This information is known as material information and CPRs apply to both sales and lettings. Material information should be provided up front, before any transactional decision is made.

The regulations identify who could be considered the average consumer;

The ‘average consumer’ is someone who is reasonably well-informed, and reasonably observant and circumspect. For example, an average consumer would pay some attention to documentation given to them, but not necessarily to the small print unless key points in it are brought to their attention. An average consumer would check out publicly available facts for themselves where this is straightforward to do, although what checks they actually make will be influenced by the information that a business has given them

And their transactional decision is

defined widely and is not simply a consumer’s decision to use a business’s services or not, or to buy a property or not. It could, for example, be a client’s decision to accept an offer, or a buyer’s decision to view a property, commission a survey or instruct a conveyancer.

But these are relatively broad definitions, and there is an acknowledgement from those who enforce CPRs, that material information is subjective. What might be important to one buyer/tenant, may not be to another.

In our next blog, Ben Robinson will look at some practical examples of CPRs in action, what enforcement, if any, was taken, and what lessons can be learnt.

 

Compliance in a Box from Landmark is the simple pay-as-you-go compliance toolkit.

Make sure you are asking the right questions of your clients, and documenting their response. Compliance Packs help agents fulfil their obligations under CPRs and AML. From one account source:

  • Electronic property information questionnaire & fixtures & fittings form for CPRs
  • Electronic client verification for AML inc PEPs, Sanctions & Checks
  • Land Registry ownership & boundary confirmation
  • Foreign national checks… and more

with a complete time and date stamped audit trail of all compliance activity.

For more information about reducing your risk please complete the sign up form below or contact Compliance in a Box on 01524 220013 / sam.peacock@landmark.co.uk

Find out more

 

Verification

The client and experts view...

  • thumb1
Latest newsspeech Bubble

How to write your AML risk assessment

The Money Laundering Regulations require estate agents to risk assess their business relationships and apply an appropriate level of investigation to ensure that they understand who their customer is, and why they are involved in the transaction. (more…)

Fines for failure to identify beneficial owners

Agents are falling foul of money laundering regulations by not having a process in place to identify third party ownership and beneficial owners. (more…)

NEWSFLASH: Funding doubles for industry regulator

The government have announced a significant funding increase for property industry regulator the National Trading Standards Estate Agency Team (NTSEAT).

There has long been criticism of a lack of resource in the team whose responsibility it is to police and enforce various regulations estate agents are governed by; including the Estate Agents Act 1979 and the Consumer Protection from Unfair Trading Regulations 2008 (CPRs). (more…)

£22.5k fine for estate agent…

A recent news story highlights the risks posed by the Consumer Protection from Unfair Trading Regulations, otherwise known as CPRs. (more…)

CPRs; the opportunity

In our previous 2 blogs we have covered the definitions of the Consumer Protection from Unfair Trading Regulations (CPRs) and what the practical implementation of compliance involves. (more…)

divider
newsletter sign-up

Sign up for our e-newsletter

Name
Company
Email Address
trialTop

trial sign-up

Click the Apply button opposite to use our software on a trial basis...

trialBottom
  • etsosnews

  • etsosnews

  • Linkedin Twitter Facebook
    This site uses cookies. Find out more about this site’s cookies.