NTSELAT deem Price on Application unlawful

NTSELAT deem Price on Application unlawful

12:11 PM, 6th May 2022, About 3 weeks ago 1

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The National Trading Standards Estate and Letting Agency Team (NTSELAT) has released its opinion, with the collaboration of the Competition and Markets Authority (CMA), on the use by agents of the term price on application (POA) in property listings. The settled decision was that this contravenes consumer protection legislation.

This opinion was requested to provide a view on the use of POA as part of the ongoing process to improve the disclosure of material information on property listings.

Senior Manager of the NTSELAT, James Munro, said:

“I am pleased to be able to provide a clear position that the use of ‘POA’ or ‘price on application’ in property listings is unlawful. I am grateful to colleagues, the CMA and legal experts for their input and we hope this clarity will be helpful for property portals and agents as they prepare their listings. This position will form part of our general industry advice and guidance moving forward.”

However, chief executive of Propertymark, Nathan Emerson, commented: “The use of ‘POA’ is a tried and tested method of marketing by agents in very specific and appropriate circumstances. For example when there may be no comparable property on the market or if a vendor prefers an element of discretion about its value.

But he also admitted that: “Trading Standards’ has taken the view that it’s confusing for consumers and in updating its guidance it is giving clarity for agents, buyers and sellers.”



Comments

by Malcolm Ratcliffe

23:18 PM, 7th May 2022, About 3 weeks ago

POA, this is an admission that the agent hasn’t a clue about what a property can be sold for. A property has been stuck on the local market, the agent has few (under 5 properties) unsold, ignoring the 15 SSTC.

This property was on sale for £350k. Now it’s POA. I’m not understanding the logic. Does POA suddenly turn an unsaleable property at the current price, to something more desirable?

Or a desperate attempt to get it off their books.


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