Material Information: Debunking the myths

There’s nothing more frustrating than losing a sale at the last minute due to details that could have been disclosed upfront. Since November, NTSELAT's guidance on Material Information Parts B, and C has aimed to address this very issue. Yet, estate agents still face misconceptions that hinder a smoother, more transparent moving process.  

Let's debunk these myths and explore the benefits of upfront Material Information so that both agents and consumers can navigate property transactions with greater confidence and efficiency.
 
Myth 1: Providing more Material Information upfront will put buyers off

Reality: Upfront Material Information empowers agents to find the right buyer more quickly and reduces the risk of renegotiations, speeding up transactions

When agents have access to detailed Material Information about a property, they can better identify the right buyer. If buyers are fully informed from the start, they are less likely to renegotiate later down the line therefore avoiding delays. In a market where dis-instruction rates are high, providing Material Information upfront means clients are more committed to the purchase of the property. Evidence from Scotland shows that Material Information regulation hasn't decreased market listings but instead has significantly reduced fall-through rates by 60%, resulting in fewer dis-instructions.
 
Myth 2: Sellers won’t cover the cost of the Property Pack, which includes Searches

Reality: The majority of sellers are in favour of providing upfront Material Information

According to consumer research conducted by The Conveyancing Association, an impressive 98% of respondents support the idea of upfront Material Information. Furthermore, 71% believe that sellers should bear the cost, while 60% of those surveyed indicated they would be willing to pay over £300 to facilitate this process.

Companies that already offer Property Packs report minimal resistance from sellers. In fact, sellers often complete the necessary questionnaires more promptly when preparing the information upfront, rather than waiting until after an offer has been accepted. 

Myth 3: A buyer can’t utilise the seller's searches

Reality: We’re all safeguarded by the same code

The Search Code ensures liability protection for anyone relying on search results, regardless of whether they were obtained by the buyer or seller. The data provided by the authority will be identical, and the indemnity protects anyone who relies on it.

Additionally, the Law Society Conveyancing Handbook B.10.2.1 highlights that sellers can include searches in the pre-contract pack.
 
Myth 4: Material Information requirements will slow down the listing process for estate agents

Reality: Properly integrating Material Information can streamline the listing process and enhance overall efficiency

While there might be an initial perception that gathering Material Information is time-consuming, in practice, it leads to a more efficient and streamlined process. By having all necessary information upfront, estate agents can avoid delays caused by back-and-forth communication and missing documentation. This proactive approach ensures that properties are market-ready sooner, reducing the risk of fall-throughs and increasing client satisfaction. Furthermore, agents can leverage technology and standardised forms to gather and verify Material Information efficiently, making the listing process smoother and more reliable.
 
Myth 5: Material Information requirements are only beneficial for large estate agencies

Reality: Small, independent estate agencies gain significant advantages from Material Information requirements

It’s a common misconception that only large estate agencies with extensive resources can benefit from Material Information requirements. In reality, small and independent agencies can also gain a lot from these regulations. By providing comprehensive and transparent information upfront, smaller agencies can build trust with clients, differentiate themselves from competitors, and reduce the likelihood of transactions falling through. This level of transparency can attract more clients who value honesty and thoroughness, ultimately leading to increased business and client loyalty.
 
At iamproperty, we understand the importance of staying ahead of the curve with the latest Material Information guidance. That is why our Material Information Hub is designed to help agents understand the rules and uncover the opportunities that upfront Material Information brings. iamproperty also helps agents get ahead of the latest legislation through our end-to-end onboarding solution, movebutler, which covers all your Material Information needs, allowing you to focus on what you do best.