Compliance success lies in the details: Navigating Material Information requirements

In recent years, regulations have tightened, and the consequences of non-compliance have become more severe hence a growing focus on obtaining material information effectively. This shift has forced agents to be more conscientious in gathering and property details to prospective buyers. Initially introduced in 2022, these regulations reflect a broader commitment to transparency and consumer protection.

In May 2024 Rightmove issued a warning regarding the importance of filling out fields on material information and the failure to comply with these requirements could result in hefty fines or in some cases, prison sentences.

What is Material Information?

Material information is an essential piece of the property buying process and offers critical insights which may impact the consumers final buying decision. The Consumer Protection from Unfair Trading Regulations (CPRs), defines this as including key details about a property’s features, condition, legal constraints, and any potential environmental risks. By being transparent and sharing this information in property listings, estate agents can proactively prevent any misleading omissions ensuring clarity from the very beginning.

So, where does the challenge lie in providing this information?

Failure to provide key information could result in agents facing tough penalties and even up to two years in jail in some cases. The impact on buyers, from agents not sharing material information, will mainly be financial as they commit to buying properties that have hidden problems, which can ultimately lead to stress and large financial losses. The impact to the estate agent could mean they risk getting fined a potentially unlimited amount and damaging their reputation, and in the most serious cases imprisonment is being threatened.

Time is a key challenge; the ability to gather comprehensive information is not a quick task as it often requires coordination amongst sellers, solicitors and third-party experts such as surveyors. Alongside this, ensuring the information remains up to date and correct is a necessity. Inaccurate details about a property’s features could result in legal claims against the agent.

The complexity of the information out there often means that agents are grappling with many different requirements across residential, commercial, and mixed-use properties. Combine this with factoring in local nuances and environmental risks, agents must be well-versed from a legal standpoint in all of the unique sets of information required.

Finally, presenting this in a clear and accessible manner can also be a challenge due to the volume of information that is being collated. Estate agents need to strike a balance between full disclosure but in a way that is user intuitive. This then needs to be consistent across all listings and platforms.

How technology and data can support in meeting these standards

When it comes to trading standards and regulatory shifts it’s important to recognise that this isn’t just a box-ticking exercise, it’s about giving buyers the full picture and enabling them to make informed decisions. Capturing details such as the below provides this transparency to both parties:

• Primary source of heating
• Primary arrangements for sewerage
• Accessibility features of the property
• Primary source of water
• And other key considerations

The integration of compliance tools by property management software platforms reflects the industry’s push to support agents in staying compliant. For example, some providers have responded by working closely with industry professionals, regulators, and accessibility experts to refine their solutions and make the process of gathering and sharing material information much more efficient for agents.

A recent conversation with Guy Harris from AccessiblePRS highlighted the efforts being made to ensure the tools and systems for agents are more exclusive, recognising the importance of accessibility in property marketing. The ultimate goal is to exceed the minimum legal standards outlined, offering a better, more transparent experience for all involved.

As the landscape shifts, it’s clear that compliance is no longer an afterthought – it’s rapidly becoming a fundamental part of real estate best practice. For agents, staying informed and having the right tools to hand isn’t just about penalty avoidance, it’s about building a reputation for transparency, reliability and trust in a more regulated world.