Consumer Protection Act regarding property for sale

Consumer Protection Act regarding property for sale

9:39 AM, 18th May 2015, 11 years ago 3

I am considering selling my investment property which is a terraced cottage. The estate agents have asked me to sign a Consumer Protection Regulations 2008 Questionnaire.

This mostly relates to the condition of the property. Does anyone know if this is now a legal requirement?

Many thanks

Peter


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  • Member Since February 2011 - Comments: 3453 - Articles: 286

    9:46 AM, 18th May 2015, About 11 years ago

    Hi Peter,

    I don’t believe there is specific compulsory form, but there is guidance given by The Property Ombudsman I have copied below:

    The Consumer Protection from Unfair Trading Regulations
    2008 came into force on 26 May 2008. These Regulations apply
    to commercial practices before, during and after a contract
    is made so for them to apply there does not have to be a
    contractual relationship between consumer and agent. In
    other words an agent’s dealings with a prospective buyer of a
    property have to be fair even though there will be no
    contractual agreement in place at any point (unless where you
    are acting as a buying agent).
    The Regulations set out a general prohibition on unfair
    business to consumer commercial practices, also known as
    the general duty not to trade unfairly. The general prohibition
    is made up of two tests prohibiting practices that:

    Contravene the requirements of professional
    diligence, i.e. the standard of skill and care which an
    agent may reasonably be expected to exercise
    towards consumers.

    Materially distort the economic behaviour of the
    average consumer’s ability to make an informed
    decision.
    The Regulations specify particular prohibitions of misleading
    and aggressive commercial practices. Those commercial
    practices relate to ‘business to consumer’ only transactions
    and to the likely effect on the ‘average consumer’.
    This guidance note is designed to give agents an awareness of
    the existence of the legislation and can only highlight the
    general obligations placed on them – agents are strongly
    advised to obtain a copy of the Regulations for reference.

    http://www.legislation.gov.uk/ukdsi/2008/9780110811574/contents

    Outright Prohibitions
    There are 31 commercial practices which are considered to
    be unfair to the consumer in all circumstances and are
    therefore banned. These banned practices are listed in
    Schedule 1 of the Regulations. A breach of the Regulations in
    this regard is considered a criminal offence.

    Misleading Practices
    Under the Regulations, Misleading Actions and Misleading
    Omissions can lead to criminal prosecution if the average
    consumer takes, or is likely to take, a different decision as a
    result of being given false information about your services or
    the properties being marketed, is deceived about your service
    matters relating to any property, including your failure to give
    any consumer all relevant material information to enable
    them to make an informed choice.
    Material information is defined as information that the
    average consumer needs to have, in the context of the
    transaction, in order to make an informed decision.
    Further prohibitions are placed on actions which set out to
    create confusion with competitors’ services.

    Aggressive Commercial Practices
    These are practices that intimidate or exploit consumers and
    restrict their ability to make a free or informed choice and the
    practice causes the average consumer to take a different
    decision. Again a breach of the Regulations in this regard can
    result in criminal prosecution.
    Aggressive practices include harassment (this could include
    the uncontrolled use of flyers when canvassing for new
    business), coercion or applying undue influence on the
    consumer.

    Compliance and Enforcement
    Local Authority Trading Standards Services (in Northern
    Ireland, the Department of Enterprise, Trade and Investment)
    and the Office of Fair Trading have a duty to enforce these
    Regulations.

    Contravention of the Prohibitions, Misleading Actions and
    Misleading Omissions Regulations will be considered a
    criminal offence

  • Member Since September 2013 - Comments: 64 - Articles: 1

    11:31 AM, 18th May 2015, About 11 years ago

    The agents are trying to protect their own backs. There is a ‘due diligence’ defence to a prosecution under the 2008 Regulations i.e. “that the commission of the offence was due to [among other things] reliance on information supplied to him by another person.”
    So if the agents make statements to a buyer based on information which you have supplied they could avoid prosecution under the Regulations.

  • Member Since September 2014 - Comments: 277

    8:19 PM, 18th May 2015, About 11 years ago

    Thanks for your replies and very informative. As I’m not a trader it seems there is nothing to worry about. Thanks again for your trouble.

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