Should estate agent have done checks?

GDB2222

https://forums.moneysavingexpert.com/discussion/comment/81968090#Comment_81968090

Even if every scrap of paperwork is in order, the tenant may decide to stay put until there’s a court order. That can easily take 6 months. That’s why you have received such negative feedback here.

eddddy

mills112 said

i don't think there is any come back to the estate agent as i am aware that they are not obligated to check the gas safety certificates or the ECIR report exist and that there won't be issues that the tenants are going to be moving out at the end of the contract. that is the risk to the buyers.

my question is whether this should be made mandatory to catch bad landlords who break the laws or to stop the estate agents selling a property that is obviously not yet in a situation that could be seen to be saleable. A change in practice behaviour as it means buyers won't be put in a situation of high risks without realising it.

It sounds like you're suggesting that it should be mandatory for estate agents who sell properties to be trained in the Housing Act 1988, so that they can assess the chances that a court would find a section 21 notice invalid.

That sounds a bit extreme.

Perhaps a more realistic requirement would be for estate agents to add a 'health warning' to listings of properties which are tenanted. Maybe something like "This property is currently tenanted, you should discuss the risks associated with this with your solicitor".

And perhaps add "We understand that a section 21 notice has been served" or "We understand that the tenant has given notice" or whatever.

Murphybear

https://forums.moneysavingexpert.com/discussion/comment/81967178#Comment_81967178

We had a lettings business for years and didn’t have any rogue landlords. My theory was that ”rogues”would not have used a lettings agency.

The whole business needs to be tightened up. Qualifications should become compulsory for agents, I took and passed 2 lots of ARLA exams. This is important because if you run a business that involves people and their lives you need to know what you are doing and it’s vital to know all the legal stuff as it changes quite often. I believe this is what happens successfully in the USA.

It concerned me sometimes that some landlords managed their properties without really knowing what they were doing and having little understanding of the legal side. We used to get some of our tenant find landlords coming into the office to ask for help or advice. A lot of them realised it was a bit over their heads and asked us to start managing the property.

Note: I know there are lots of good landlords on here, it’s nothing personal😿

mills112

https://forums.moneysavingexpert.com/discussion/comment/81968118#Comment_81968118

but at least it is not going to be as bad as without any papers. with the correct papers, the tenant will have to go and they will know it, but without the correct papers, they don't and they will know it.

mills112

https://forums.moneysavingexpert.com/discussion/comment/81968117#Comment_81968117

they don't stop the sale but their "orders" that they can slap on an illegally rented property can stop the sale process until that is resolved. so the AI info states that the council do not directly stop the sale but their actions in prosecuting the owner can have a severe impact on the sale.

mills112

https://forums.moneysavingexpert.com/discussion/comment/81968120#Comment_81968120

i would have thought that estate agents should know about laws relating to properties, including rentals even if they are not letting but selling a property? they should certainly be aware of the possibilities of the tenant not moving out and how much risk this is when they market a property.

and yes, disclosing the current situation of the existing occupant to potential buyers and warning them that there is a risk would help unsuspecting buyers as most people will not understand that a tenant has the right to stay in the property and don't actually have to leave just because their fixed contract has ended or a section 21 has been served.

but the estate agent should also satisfy themselves that the property is actually going to be available for sale before putting it on the market, for example, ask the landlord about the tenant leaving and whether he has the correct papers to serve an eviction notice if they don't.

mills112

https://forums.moneysavingexpert.com/discussion/comment/81968168#Comment_81968168

i think with the introduction of the landlord registration next year, this will probably achieve the "ignorant" landlord scenario as i have read that the landlord details together with all the necessary paperwork will need to be added to the property.

what may happen is landlords who rent out themselves not knowing they need to be registered and so slip through the net until they are found out.

the seller knew nothing about the renters' right bill when i told him about it and i am sure a lot of landlords don't.

Murphybear

https://forums.moneysavingexpert.com/discussion/comment/81968207#Comment_81968207

I think you are right about about the ignorance of the new renters bill. I have come across quite a few landlords who think that all they have to do is put a tenant in and sit back and watch the money roll in. One came into our office one day and asked me what we actually do apart from that. So I sat him down with a cup of tea and explained. I included “what to do when things go wrong”. 20 minutes later he was still there with his jaw dropped. He said “I had no idea”. I said that’s why you get someone who has had training and has got qualifications. I pointed to my certificates displayed on the wall. He decided to give us the property to manage 😺

Section62

https://forums.moneysavingexpert.com/discussion/comment/81968183#Comment_81968183

The Housing Act powers apply to all dwellings, not just ones which are rented ('illegally' or otherwise).

So in theory anyone buying a dwelling could discover the council is taking enforcement action, regardless of what the status is at the point the property goes on the market.

The AI overview you quoted is taking different things and adding them up in a way which has led to you forming a conclusion which isn't really based on reality.

The lack of a gas safety certificate or EICR doesn't mean the property has a “category 1 hazard” or “category 2 hazard” that the council could take enforcement action against.

And when considering enforcement action the council has to consider the "public interest" / "public good", which may be best served by encouraging the sale of the property rather than issuing enforcement notices/orders that could have the effect of disrupting a sale.

mills112

https://forums.moneysavingexpert.com/discussion/comment/81968253#Comment_81968253

i read that landlord licensing will come into effect when the councils will be able to introduce landlord licensing without applying for permission and justfying why they need to introduce such a scheme, that is, it will be a lot easier for them to introduce the licensing.

i believe that all landlords should have to attend a course to keep up to date with legislation as it is becoming very complicated and you have too many novice landlords about, particularly in the rural areas, where the council is less bothered about prosecuting landlords.