Selling a property can be stressful enough without worrying about a buyer pulling out, unexpected issues appearing during conveyancing or a sale becoming stuck in a lengthy property chain.
Changes to the way homes are bought and sold are intended to make the process more transparent and give buyers and sellers greater certainty. However, it is important to distinguish between the rules that apply today and reforms that are still being developed.
At I Am The Agent, we want sellers to understand what potential changes could mean for them, while also focusing on the practical steps they can take now to prepare for a smoother property sale.
Here, we look at proposals around providing property information earlier, property sales packs and greater commitment between buyers and sellers, as well as some of the protections already available to property owners.
Important: Many of the reforms discussed below are proposed or still being developed. They should not be treated as requirements that every seller must comply with today. Sellers should check the latest official Government guidance and seek appropriate professional advice where necessary.
Why is the home buying and selling process changing?
Buying or selling a property involves numerous parties, documents and checks.
Important information about a property can sometimes emerge relatively late in the conveyancing process. This may lead to additional enquiries, delays, renegotiation or, in some cases, a transaction falling through altogether.
For a seller, a failed sale can mean wasted time and money. It may also have a knock-on effect on an onward purchase and other transactions within a property chain.
One of the key ideas behind reforming the process is therefore straightforward: make more useful information available earlier and give buyers and sellers greater confidence before they progress too far into a transaction.
What can property sellers do now?
Whatever future reforms look like, sellers do not need to wait for legislation before getting better prepared.
Having important documents and information ready before, or shortly after, putting your property on the market can make it easier to answer questions and deal with requests once a buyer has been found.
Depending on your property and circumstances, useful information could include:
- Proof of identity
- Your property's Energy Performance Certificate (EPC)
- Title information
- Lease information if the property is leasehold
- Service charge and ground rent information where applicable
- Details of alterations or extensions
- Relevant planning permissions
- Building Regulations documentation
- Guarantees or warranties relating to work carried out
- Information about known issues affecting the property
- Information relating to an onward purchase, if applicable
- Other documents your conveyancer is likely to request
You will not necessarily need every document listed above, as individual properties and transactions differ.
The important principle is to start preparing early rather than waiting until a buyer has made an offer.
Doing so may help identify missing information or potential complications sooner, when there is more opportunity to address them.
Could more property information be provided upfront?
One of the areas being considered as part of reforming the home buying and selling process is making more information available to potential buyers at an earlier stage.
Traditionally, some of the detailed information about a property is gathered or investigated after an offer has been accepted.
A greater emphasis on upfront information could change that.
Depending on how future requirements are ultimately designed, buyers could potentially receive more information relating to matters such as:
- Whether a property is freehold or leasehold
- Council Tax
- Energy efficiency
- Title information
- Leasehold or estate management arrangements
- Relevant building safety information
- Searches and property-related information
- The physical condition of the property
- Accessibility
- The seller's chain position
- Floor plans and other property details
The precise content and legal requirements of any future system will depend on how the reforms are ultimately implemented.
The overall direction, however, places greater emphasis on accurate information being gathered and shared earlier in the selling process.
For sellers, early preparation may therefore become increasingly important.
What are property sales packs?
Another proposal attracting attention is the concept of a property sales pack prepared earlier in the selling process.
Rather than waiting for different pieces of information to be collected after an offer has been accepted, a sales pack could bring together important information about a property closer to the point at which it goes onto the market.
The potential advantage for a buyer is that they can make a more informed decision before committing significant time and money to the purchase.
For sellers, it could help uncover problems or missing paperwork before a transaction is well underway.
That could mean fewer unwelcome surprises during conveyancing and potentially reduce avoidable delays.
Are property sales packs compulsory now?
This is an important distinction.
Sellers should not assume that a proposed future sales-pack system is already a universal legal requirement.
Future mandatory requirements will depend on the final legislation, guidance, implementation dates and scope of any new system.
Until then, the sensible approach for sellers is to concentrate on preparation: collect relevant documents early and make sure the information supplied when marketing a property is accurate.
Could buyers and sellers become committed to a transaction earlier?
Another important area of potential reform concerns the point at which a buyer and seller become committed to a property transaction.
Under the existing system in England and Wales, accepting an offer does not normally have the same effect as exchanging contracts. This means a transaction can still collapse before exchange.
For sellers, this uncertainty can be particularly frustrating. They may have stopped marketing their property, instructed professionals, incurred costs and made plans for their next home, only for a buyer to withdraw.
Ideas around earlier or conditional commitment are intended to give both sides greater certainty while still recognising that there may be legitimate circumstances in which a transaction cannot proceed.
The detail matters enormously, including what conditions would apply, when somebody could withdraw and how disputes would be dealt with.
For now, sellers should view earlier binding commitments as an area of future reform rather than assume that a new universal binding-contract system already applies to their transaction.
What about property fraud?
Seller protection is not only about preventing a normal transaction from falling through. Property owners may also be concerned about fraud.
There are measures property owners can consider today.
HM Land Registry provides a Property Alert service that can notify registered users when certain activity takes place in relation to a monitored property.
Receiving an alert does not itself prevent a transaction from taking place, but it can help a property owner identify activity that they were not expecting.
Depending on individual circumstances, an owner may also be able to apply for a restriction on the property's title. Restrictions can place additional requirements on particular applications before they can be registered.
This may be particularly worth investigating for owners who do not live at the property they own.
However, a restriction can also introduce additional steps into genuine property transactions, so owners should understand the consequences and seek appropriate professional advice before deciding whether one is suitable.
What could the changes mean for people selling their homes?
Although the final shape of future reforms will depend on Government decisions and legislation, the general direction gives sellers a useful indication of how the property market may evolve.
There is likely to be greater emphasis on:
- Preparing property information earlier
- Providing accurate and transparent information to buyers
- Establishing the identity of the parties involved
- Resolving missing paperwork and potential problems sooner
- Giving buyers more information before they make major commitments
- Reducing unnecessary delays once a sale is agreed
There is a practical lesson here for anybody considering selling a property: being organised from the beginning can put you in a stronger position, regardless of when future reforms take effect.
Preparing your property before you list
Preparing early does not have to mean producing every possible document before speaking to an estate agent.
A sensible starting point is to consider your property's individual circumstances.
For example, if you have extended your home, can you easily locate the relevant planning or Building Regulations documentation?
If the property is leasehold, do you have up-to-date details about the lease, service charges and management arrangements?
If work has been carried out on the property, are there relevant guarantees, certificates or warranties available?
Identifying these things at the beginning allows you to speak to the appropriate professional if something is missing or needs clarification.
Alongside documentation, preparing your home physically and making sure it is presented and priced appropriately can also make a significant difference when it reaches the market.
How I Am The Agent can help
At
I Am The Agent, our aim is to make marketing your property as straightforward and transparent as possible.
We give sellers greater control over their property listing while enabling them to reach prospective buyers through established property portals.
For sellers, providing clear, comprehensive and accurate information about a property has always been important. As the property industry moves towards providing more information earlier in the journey, good preparation is likely to become even more valuable.
That means thinking about more than simply putting a property online.
Preparing your paperwork, understanding your property's circumstances and making sure the information in your listing is accurate can all contribute to a better-prepared sale.
Looking ahead
The way properties are bought and sold is evolving, but sellers should be careful not to confuse future proposals with rules that already apply today.
The most useful response is not to wait for regulation.
If you are considering putting your property on the market, you can start preparing now by gathering important documents, checking the information you hold about the property and addressing potential questions before a buyer is found.
Greater transparency and earlier preparation have the potential to make property transactions more predictable for everyone involved.
For sellers, that could mean fewer unexpected problems and a smoother journey from listing their property to completing their sale.
Thinking about selling your home?
You don't need to wait for future property reforms to get prepared. Start by getting your paperwork organised, understanding your property and making sure you're ready to market it effectively.
I Am The Agent puts you in control of your sale, helping you market your property and reach prospective buyers.