Estate agents legal obligations to buyers

Estate agents are legally obliged to pass on all offers from prospective buyers to the seller. But estate agents legal obligations to buyers don't end there. Here is what they should be telling you in 2024, including the latest rule changes and what to do if an estate agent withholds vital information.

Angela Kerr Director, Editor

New rules – what estate agents must tell buyers

Over the years, we have campaigned for more up-front information for home buyers. It’s simply not on that buyers can go as far as paying for a survey and starting the legal conveyancing process before finding out their property is a leasehold, that there is a restrictive covenant in place or that the garden is flooded for half the year. Thankfully, change is on the way.

First phase of changes

From May 2022, the National Trading Standards Estate and Letting Agency Team introduced a first phase of changes (Part A) that should see the following included in the marketing information accompanying a property listing:

• Council tax band or rate
• The price
• Tenure information on properties for sale (freehold or leasehold)
• Details of any reservation fees to be included.

For shared ownership listings, estate agents must include the percentage of shares being offered for sale, as well as the amount of rent to pay on the share not being sold.

The new rules affect renters as well. For example, properties listed for rent should include information about deposits including any holding deposit payable.

Rightmove, Zoopla and OnTheMarket have all introduced new data fields to include information on tenure (leasehold or freehold) and council tax bands on new listings.

But be warned: agents can still list a property without this information. Although, where these fields are left empty, this will be flagged so that potential buyers can see what is missing. There will be a link to advice on why the information is important and how it may be obtained.

In July 2022, Rightmove stopped accepting property listings that that don’t have a specific price. Properties can no longer advertise a property with “Price on Application” (POA) and “offers invited”. At HomeOwners Alliance, we think it’s about time Rightmove and the other property portals do the same for listings that don’t include council tax or tenure information as agents have had over a year to comply with the new requirements.

Second phase of changes

In November 2023, Part B and Part C were announced:

Part B is information that should be included for all properties – such as the type of property, the building materials used, the number of rooms and information about utilities including broadband type and an indication of speed and mobile signal/coverage (including any known issues or restrictions), and parking.

Part C is information that only needs to be established if the property is affected by the issue – such as :

• Flood risk
• Restrictive covenants.
• Building safety such as unsafe cladding
• Rights and easements – e.g. public rights of way, shared drives

National Trading Standards says ‘sellers will be advised to bring a conveyancer on board at an early stage to help ensure validated information is available to the agent for marketing and that issues like restrictive covenants or boundaries are addressed at an early stage’.

This is a rolling programme and these changes should come in over the next 12 months; the plan is to give time to raise awareness amongst the estate agents in order to get them to comply.

Buyers or renters will start to see new data fields appearing on property portals but buyers should be encouraged to ask the estate agent for the information if it’s not on the property listing. 

Rationale for more up-front property information

These guidelines are a step forward in making sure anything that has a financial implication on the buyer is flagged up early. The rules have been developed by the National Trading Standards Estate and Letting Agency Team in partnership with industry leaders and major UK property portals.

What are estate agents legal obligations to buyers?

There is much more than just listing the price, council tax band and tenure when it comes to what an estate agent must tell you as a buyer.

Under the Consumer Protection: ‘Unfair Trading Regulations 2008’, estate agents must comply with strict rules. The law applies to estate agents, property developers and websites that introduce buyers to sellers. And, if any of these are deemed to be acting unfairly, they can be issued limitless fines and individuals can be imprisoned for up to two years.

As well as estate agents legal obligation to buyers, estate agents that are members of The Property Ombudsman must also adhere to its Code of Practice for Residential Estate Agents.

Estate agents legal obligations to buyers: leasehold properties

When it comes to leasehold properties there is more information an estate agent will need to provide.

This includes information about:

• Service charges
• Ground rent
• Length of years remaining on the lease
• Any known special conditions

They should also advise sellers and prospective buyers that there may be additional fees that could be incurred for items such as leasehold packs.

Read our guide on leasehold conveyancing and what to know about leasehold charges before you buy.

Estate agents legal obligations to buyers: What does the law say?

So what must estate agents disclose? When it comes to estate agents legal obligations to buyers, they must disclose “fair” information to home buyers and sellers. That includes making “material information” about a property clear, unambiguous and not deliberately misleading or withholding information from buyers.

As such estate agents must:

1. Accurately describe the property

When it comes to estate agents legal obligations to buyers under the Consumer Protection from Unfair Trading Regulations 2008, estate agents are required to disclose any information of which they are aware or should be aware of in relation to the property in a clear, intelligible and timely fashion. They also need to take all reasonable steps to provide “accurate descriptions of properties they are marketing”. This includes the written description. So an estate agent can’t describe the house as being recently decorated if only one room has been redecorated. It also applies to photographs. Pictures of the property should be realistic. So, no spending hours looking for the one angle that doesn’t show the motorway at the end of the garden.

Agents are also not allowed to say anything verbally to potential buyers that is misleading or inaccurate.

Although, bear in mind, estate agents will try to present the property in the most positive way possible.

Find and compare local estate agents with our free tool: compare fees, success rate, speed of sale and track-record achieving asking price

2. Not withhold important information

Under estate agents legal obligations to buyers, estate agents should also disclose all material information. The Consumer Protection from Unfair Trading Regulations 2008 requires estate agents must disclose any ‘information of which they are aware or should be aware of in relation to the property in a clear, intelligible and timely fashion’.

There should be no omissions that may impact on the average consumer’s decision to view, make an offer on or buy a property. And where information is given to potential buyers or their representatives, it must be accurate and not misleading.

And, if a number of sales have fallen down on a property, then the estate agent should reveal why previous sales fell through.

Local schools, night clubs or halfway houses should be mentioned. As should neighbours with ASBOs and whether there have been burglaries in the area. It’s also an estate agent’s legal obligation to buyers to let them know if they’re aware of a murder or suicide in the property.

Buyers can also expect estate agents to investigate potential problems they think might become an issue, such as suspicions of damp or probable leaks. Although it may be hard to prove that your estate agent had a suspicion unless they specifically tell you so.

However, while estate agents may have these legal obligations to buyers you should always carry out your own investigations. For example, don’t take your estate agent’s word for it that no developments are planned nearby. Check the council’s planning portal for applications given approval near your new home. And get local searches back as quickly as possible.

It may well be the case that the agent and vendor do not know the latest planning applications in their area. And even if you think they did know or should have known, you’ll need to gather proof if you want to take action against them. Bear in mind if you do take action against them, any compensation may be limited unless you’re prepared to go through the courts. See our guide for advice on what questions to ask the estate agent when you are buying and our guide How to complain about your estate agent

3. Pass on offers to the seller

Does an estate agent have to disclose offers? The answer is yes. It’s an estate agent’s legal obligation to sellers to pass on all offers as soon as is reasonably possible. This applies to all offers received until contracts have been exchanged.

See our guide to understand more about what SSTC, sold subject to contract means.

The only exception is if the seller has formally requested not to be notified of certain offers; such as, if they are below a specified amount.

4. Must not show bias for or against buyers

There is also a legal requirement on estate agents not to show any bias for or against any buyers. They must treat all buyers the same.

According to The Property Ombudsman Code of Practice for Residential Estate Agents, they ‘must not discriminate, or threaten to discriminate, against a prospective buyer of the seller’s property because that person declines to accept that you will (directly or indirectly) provide related services to them.

Discrimination includes but is not limited to the following:

• Failing to tell the seller of an offer to buy the property.
• Telling the seller of an offer less quickly than other offers you the estate agent has received.
• Misrepresenting the nature of the offer or that of rival offers.
• Giving details of properties for sale first to those who have indicated they’re prepared to let you provide services to them.

Estate agents legal obligations to buyers: What if they don’t comply?

So beware of any estate agents who refuse to pass your offer on unless you speak to their in-house mortgage broker or put pressure on you to use one of their recommended services. It’s illegal and you can tell the agent that if they persist with the pressure or allude to preferential treatment for using their services you’ll take the matter further. See our guides below for advice on dealing with the situation and how to complain about an estate agent.

And if you’re considering using their in-house mortgage service or recommended conveyancer to avoid ruffling any feathers there are a number of reasons that may not be the best option for you.

Read our guide as to why it may not be in your best interests to use estate agent in-house services and what to do if you feel under pressure to use an estate agent’s services. 

How to complain about an estate agent

There are lots of reasons why you may want to complain to an estate agent. Perhaps you feel the estate agent didn’t pass on material information in a timely manner. Perhaps you have evidence they withheld information about a non-negotiable financial obligation that comes with buying the property. Or perhaps they put you under undue pressure to skip the survey, raise your offer or exchange contracts.

In the first instance, you should complain to the estate agent directly and give them a fair chance to sort out your complaint. However, if they don’t resolve the problem, see our guide on how to complain about your estate agent.

Is there an estate agent duty of care to the seller?

If you’re asking is there an estate agent duty of care to the seller the answer is yes. Those that have signed up to The Property Ombudsman have to abide by its code of conduct which says an agent will always work in the best interest of the person who is paying for their services. This is usually the seller. And the agent should ‘treat all those involved in the proposed sale or purchase fairly and with courtesy’. The rules also state that if the estate agent or a staff member has any interest in the property, they must divulge it as soon as possible in writing.

The code also states an estate agent must not release or misuse confidential information given to them by their client during the process of selling or buying a property without their permission unless legally required to do so.

Find the best local estate agents using our free Best Estate Agent Finder tool which shows agent performance using actual sales data.

Estate agent responsibilities to buyers

What are estate agent responsibilities to buyers? The seller might be the one paying the bills, but the code is clear: estate agents should provide a service to both buyers and sellers consistent with fairness, integrity and best practice. It also states they should not seek business by methods that are oppressive or involve dishonesty, deceit or misrepresentation. And ‘must avoid any course of action that can be construed as aggressive behaviour or harassment’.

It also states that your estate agent ‘should take special care when dealing with consumers who might be disadvantaged because of their age, infirmity, lack of knowledge, lack of linguistic ability, economic circumstances or bereavement.’

But the buyer should beware

It goes without saying, that purchasing a property is a huge financial commitment. While estate agents must comply with the law and there are potential consequences for them if they don’t, you will still want to do everything you can to protect your own interests.

So if you are buying a property, if you have any queries, you should ask your solicitor or conveyancer to investigate them. Especially if it’s something that you have been told by an estate agent that is an important factor in your decision to buy. And, to check the condition of the home you are buying, make sure you have a house survey done as well.

Also, in case there are any problems further down the line, we advise you to keep written records of conversations with the estate agent about buying the property.

See our step-by-step guide to buying for advice at every step of the home buying process.