There is a lot of current discussion about the decision of commercial standards to eliminate their orientation regarding the provision of material information by real estate agents and allow agents after the replacement of consumer protection regulations 2008 with the Law of Markets, Competition and Digital Consumers 2024).
I Always Found The Trading Standards ABC Approach for Agents of Group, As The items they gum, Whilst Covering Many of The Key Elements That An Agent Should Potedly and Powerian Powergy and Potedian Potntian and Powerian Potntian Boxes ”They Would Be Ok. This was reinforced by the property portals including a number of basic fields the listings of properties shown.
“Surveillance” and the application have now gone from commercial standards to the CMA (Competition and Marketing Authority) that the powers have for fine without the need to continue the action through the courts.
As some who advise and provide training and tutoring to real estate companies, I have a DMCC leg review and guidelines on consumer protection caused by CMA
As a general description, the DMCC has not changed the requirements for the information of the material that is tested (and not omitted) and the five types of injustice highlighted in the CPR remain.
• ACTIONS WITH FLAUVE: provide false information or fecia
• Deceptive omissions, particularly as regards an invitation to buy
• Aggressive practices
• Contraventions of professional diligence requirements
• Prohibited practices that include an extensive list of examples, such as using false reviews or pretending to be a member of an organization or organism when one is not
As before, Central is whether the average consumer would have its transactional decision making affected by the aforementioned aspects with respect to an “purchase invitation.”
What is an invitation to buy?
UCP provisions (unfair commercial practices) define an invitation to buy as a commercial practice that implies the provision of information to a consumer:
• Indicating the characteristics of a product and its price
• That allows, or intends to allow, the consumer decides to buy the product or make another transactional decision in relation to the product.
The idea behind this concept is that the consumer must receive the key information he needs to make an informed transactional decision.
This would clearly include the price of a property when marketed for sale or rent.
The CMA on UCP guide is said, for the following, with respect to material price information
Material pricing information
Operators must inform consumers in an invitation to buy the total price of the product that includes rates, taxes, charges or other payments in which the consumer will necessarily incur if the consumer buys the product.
Not giving the total price could breach the prohibition of the omission of material information of an invitation to buy.
The following diagram shows what the dispositions of unfair commercial practices require, including the price setting information at the price indicated in the invitation to buy (the main price).
This provision ensures that consumers know in advance what they will end up paying, that they have precise and timely price information and that they do not face unexpected mandatory charges only later in a purchase trip. This is important, because companies compete for consumers at main prices. This requirement adds to compliance with the other UCP provisions, even in relation to deceptive actions and omissions.
The CMA guidelines are very clear about the need to show the complete costs of the products and services that a consumer would incur the consumer and specifically where these costs are mandatory and inevitable.
When are versus optional charges mandatory?
If, in addition to paying the price, it was in the invitation to buy (the main price), the consumer cannot buy a product without the payment of any fee, tax, charge or other payment (‘charge’ in summary), then that position is mandatory. Mandatory charges must be included in the main price.
For real estate agents and rental agents, this has, for some time, the inclusion of VAT by showing or citing rates.
An agent must show a 1% rate that is attached to the boat as a 1.2% or barrel fairy.
This now creates a crucial and potentially new requirement for agents.
When buying a property, there are a couple of mandatory costs that apply in most scenarios:
• Tax seal
• Registration rates in the country
While these may vary depending on the position of the consumer (bell tax for a buyer or surcharges for the first time for a buyer of a second property, for example), are they, in my opinion, the material setting information?
All main portals already include a stamp tax calculator that is fine, although whose visualization could be more obvious and prominent. However, there is no reference to land registration rates and, in the agents, individual websites you have to make any reference to any of these two elements.
What will the CMA do and what should the agents do?
The CMA has declared that, during the first twelve months, they will apply an approach of four PS to their consumer protection work.
• Passed
• Predictability
• Proportionality
• Process
Agents must, in my opinion, become familiar with the 4 PS and try to comply.
The CMA has also said that they will initially focus on ensuring that harmful behavior stops quickly and that consumers are compensated.
The law does not apply retrospectively, so sanctions can only be applied to infractions after the start date.
Crucially they have also said that they take into account any proactive and significant step that a company has tasks in good faith to correct offending behavior.
Certainly, agents should review their businesses regarding the collection and provision of material information and, when necessary, building the compliance of DMCC for all systems and processes. The software and people will be key factors.
I have created new training sessions that will be launched shortly and keep my clients per day as things progress.
Michael S Day is Managing Director of Integra Property Services
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