Since we launched the new version of our TA6 Property Information Form last month, we have had feedback from members and other stakeholders. We have heard your feedback and want to explain in more detail the reasons behind the changes to the form, which was developed by a working group of conveyancers with a wealth of experience of working on the transaction forms.
Buying a house is likely to be the most expensive purchase in a consumer’s life. We know that the profession works hard to provide an excellent service to its clients during what can be a stressful time.
However, the home buying and selling process as a whole is far from perfect. The environment is changing and consumers are right to want better. Most people buy a property to make a home which is why wider questions, beyond transfer of title, are important for the whole process. Although it is not a silver bullet, providing pertinent information upfront is one piece of the jigsaw that could improve the experience for everyone involved.
New research by an insurer reported last week by Estate Agent Today confirms that a very large number of property sales are still falling through during the conveyancing process due to late disclosure of problems. We expect that in many cases the conveyancers involved will have had difficulty in recovering fees for their abortive work which could have been avoided if buyers had been given the information at the marketing stage.
The new TA6 form was developed to implement the guidance from National Trading Standards Estate and Letting Agency Team (NTSELAT) on material information for estate agents. That guidance, which was released last November, seeks to establish what a potential homebuyer will want to know about a property before making arrangements to view. NTSELAT highlights that obtaining certain material information may involve the engagement of a conveyancer. It also expressly states that sellers may wish to engage with their conveyancer at an early stage before a property is marketed, to provide prospective buyers with the information they need to know when the property is listed; ensure information regarding the property can be reviewed; and identify any issues it would be useful to resolve to ensure the property is saleable or mortgageable.
We know that every property transaction is different, as is every client, but establishing some common information for the marketing stage should help consumers to be more informed at the outset. This benefits all those involved in the process, from buyers and sellers through to mortgage lenders and solicitors.
Earlier contact between sellers and their solicitors may provide an opportunity to address any issues that could cause delays in the sale process at a later date.
Enabling buyers to have important information upfront enables solicitors to advise seller clients appropriately on these matters, reduce enquiries, ensure compliance with the regulations and improve the flow of information throughout the conveyancing process.
Having better-informed buyers could help reduce both the time the process takes and the number of sales that fall through. If buyers are dissuaded from viewing properties that are unsuitable at the outset this will remove higher-risk transactions from the chain, making chains more robust.
Our aim with the new TA6 is to help solicitors and consumers implement the NTSELAT material information guidance as seamlessly as possible, which it does in two main ways.
First, it enables solicitors to be of greater help to prospective sellers from the outset of their proposed property sale (as encouraged by NTSELAT) and not only after marketing by an estate agent has produced an acceptable offer from a buyer.
If a TA6 is completed by a seller, with their solicitor’s help, at the same time as the seller’s estate agent starts preparing the sales particulars, a copy of the completed TA6 can be given to the estate agent to enable their property listing to include the material information from the seller, which the estate agent may not be able easily to obtain from other sources (such as HM Land Registry). We know that some estate agents will obtain the information directly from sellers themselves and they have a number of different means of doing this. If the estate agent encourages the seller to go to their solicitor and use the TA6, this can then be used in the conveyancing process once an offer from a buyer has been accepted (subject to contract).
Second, the new form will help to ensure that, once the conveyancing process is under way, the information disclosed by the seller to the buyer through their solicitors in the transaction forms will match what was disclosed by the seller’s estate agents in the marketing. This is desirable even if the TA6 was not completed for marketing purposes. If the TA6 covers the same material information that was required for disclosure in the marketing, it will reduce inconsistencies and allow any inadvertent errors in the marketing information to be corrected before contracts are exchanged.
We will continue to gather feedback from users over the next few weeks and encourage members, licensees and others to get in touch via email (forms@lawsociety.org.uk).
We have also had concerns raised about the expansion of material information potentially altering the exposure of sellers, agents and solicitors to liability under the Consumer Protection from Unfair Trading Regulations (2008) (CPRs).
We will be updating our Consumer Protection from Unfair Trading Regulations Practice Note, which was last updated in 2020, in light of both the new NTSELAT guidance and the UK leaving the EU.
The process of buying and selling a home is constantly evolving. We want to help Law Society members engage with new developments, such as material information, and help to plot a path so members can accommodate necessary change while continuing to help their clients successfully navigate the risks and complexities in their most important purchase.
Nick Emmerson is president of the Law Society of England and Wales
This article is now closed for comment.
12 Readers' comments