Is it illegal for estate agents to false advertise?

shortcrust

I'm trying to imagine my reaction if a buyer suggested my house needed revaluing and readvertising...

kinger101

Yes and no. They are bound by regulations which apply to advertising, and some guidance published on the subject (by the now defunct OFT) indicated that EAs should make reasonable attempts to find out whether lofts have been converted according to building regulations before calling them bedrooms.

The practice has been adopted by the trade bodies to which estate agents belong (such as TPO), and no decent agent would advertise a recently converted loft without seeing the relevant paperwork, or take the see no evil approach and omit to ask the vendor the relevant questions.

There was a case posted on here a couple of years back where someone found out during a survey that the loft had not been converted properly, and and initiated a complaint at the EA's head office. They got all their abortive costs covered without referring to the ombudsman. I guess in that instance, the EA knew which way the ombudsman would rule.

However, I can imagine there will be some cases which are more grey, and it might not be immediately obvious that a conversion has been done or failed to comply with regulations.

In summary, they should make reasonable attempts to find out whether a loft can be classified as a bedroom before doing so. And most do, which is why we see many properties advertised with "bonus loft room" or whatever these days.

kinger101

Slithery wrote: »

Estate agents aren't surveyors (or lawyers), they just go on the details that the vendors have given them.

There will be a disclaimer in the property details saying that all details are correct to the best of their knowledge, and are in no way binding.

Actually, it's long been established that they can't. If they have any reason to suspect the information an vendor has given them is incorrect, they should challenge it. Advertising does carry responsibilities.

davidmcn

Help1234 wrote: »

What about the 1971 Property Misdescriptions Act?

What about it? We haven't got as far as determining whether any false or misleading statement has been made - and even if it has, all that provides is a potential basis for Trading Standards to prosecute. Doesn't really help you with your transaction.

lincroft1710

EA goes to property. Room with sink and cooker, that'll be the kitchen. Room with sofa and TV - lounge. Room with chairs and table - dining room. Room with bath and WC - bathroom. Rooms with beds - bedrooms!

Help1234

lincroft1710 wrote: »

EA goes to property. Room with sink and cooker, that'll be the kitchen. Room with sofa and TV - lounge. Room with chairs and table - dining room. Room with bath and WC - bathroom. Rooms with beds - bedrooms!

Thanks Linda. Has this post been informed by assumptions or your legal expertise and knowledge obtained from research?

Help1234

davidmcn wrote: »

What about it? We haven't got as far as determining whether any false or misleading statement has been made - and even if it has, all that provides is a potential basis for Trading Standards to prosecute. Doesn't really help you with your transaction.

Still to hear back and there is nothing on the local authority Building regulations applications search so I would say it's doubtful.

Surrey_EA

Help1234 wrote: »

Hi, yes it does. I haven't had confirmation yet whether it does or does not meet BR but I am trying to be as prepared as possible for the consequences if it does not - ie would the EA need to revalue/market the house. I did a local authority search and there is nothing in there, but I see now you say most don't need planning permission.

As David has pointed out in post #3, it is entirely possible PP was not required, and depending on when the conversion was carried out may not have required building regs.

In any event, it would only have needed to comply with BR at the time the work was carried out, BR cannot be applied retrospectively.

Any further news today?

davidmcn

Help1234 wrote: »

Still to hear back and there is nothing on the local authority Building regulations applications search so I would say it's doubtful.

You need to work out whether or not there are consents lacking, and if so how that affects you. The question of whether or not the EA has been telling fibs isn't all that relevant - you are already aware of the issue before deciding whether to commit yourself.

Help1234

walwyn1978 wrote: »

That.

EA: oh, that looks like a loft conversion, did you do it?

Vendor, lying: no, it was here before us

EA assumed it's therefore been passed and has PP. EA's don't have the skill/time to visually see whether something meets building regs, unless its blindingly obvious.

phill99 wrote: »

EAs will provide information given to them in good faith. On the particulars there will be a disclaimer about purchasers having to undertake due diligence etc. They are not employed to confirm title, Building Regs, Planning Permission etc. That's why you employ a solicitor. When it is valued, it may well be valued as a 2 bedroom with loft storage room.

p00hsticks wrote: »

I can't see how it can be, when there isn't really a standard definition of what makes a room a 'bedroom'.

For example, the property linked to in your previous thread has six rooms as well as kitchen. bathroom etc.

The fact that they are described as lounge, sitting room, dining room ,bedroom 1, bedroom 2 and attic room is pretty arbitrary.

You could just as easily say it's a one bedroom house with lounge, dining room, sitting room, study, library and bedroom.

Or a five bedroomed house with a lounge/diner.

It's just meaningless as a headline - you have to look at the detailed description and/or floorplan and decide how you want to use the rooms within it.

lincroft1710 wrote: »

EA goes to property. Room with sink and cooker, that'll be the kitchen. Room with sofa and TV - lounge. Room with chairs and table - dining room. Room with bath and WC - bathroom. Rooms with beds - bedrooms!

Just to let you all know - the estate agent listing a house as "3 bedrooms", when the loft room is considered the third bedroom and has no building regulations is considered a breach of the Consumer Protection from Unfair Trading Regulations 2008.