This week, the conflict between the Property Lawyers Action Group (PLAG) and the Law Society escalated due to adjustments to the property information forms, which align with NTS guidelines about ‘Material Information’ for listing properties for sale.
PLAG criticized the Law Society for modifying the forms without including licensed conveyancers in the conversation, which they claim should have occurred.
“For a long time, the Society’s Conveyancing Quality Scheme (CQS) has prioritized reducing unnecessary enquiries rather than scrutinizing every possible issue in a transaction. The aim has been to streamline conveyancing by focusing on targeted queries, thus cutting down on the time and costs involved in transferring property ownership. But the new TA6 and TA7 forms contradict this approach, adding complexity and expense without any clear advantage.
“Although licensed conveyancers are not Law Society members, this failure to consult undermines good relations between conveyancing solicitors and licensed conveyancers. The latter generally follow the practices and standards of the CQS as a courtesy. Conveyancing practices benefit from uniform procedures and standards, so the Law Society’s unilateral changes could complicate transactions significantly.”
A spokesperson for the Law Society said the organization is looking into the concerns voiced by some members, as reported. They will consider what actions or guidance might be necessary after a full review of the issues.
Last month, PLAG sent a public letter to James Munro, who is in charge of the National Trading Standards Estate and Letting Agency Team (NTSELAT).
In the letter, PLAG claimed Material Information is just a revised version of the failed Home Information Packs (HIPs) which were discarded in 2010 for being costly, unnecessary, and burdensome to the housing market. They argue that Material Information will not result in faster transactions or fewer cancellations, nor will it likely prompt earlier involvement of lawyers in most transactions.
PLAG concluded by urging NTS to focus more on eliminating unfair practices such as referral fees, conditional selling, and questionable developer behaviors. They believe addressing these issues would be more beneficial to consumers and fall within NTS’s existing authority.
James Munro of National Trading Standards, in a response to the Law Society Gazette, cited research showing that a majority of recent movers or prospective buyers want all important information included in property listings, with many suspecting that missing information indicates a problem. Munro noted that the guidance is welcomed by the industry, with agents reporting fewer pointless inquiries, faster sales, and reduced collapses of transactions. The government continues to support these updates due to the benefits they provide.
He also mentioned that National Trading Standards has worked closely with the legal sector to create the guidance and remains open to new insights and suggestions to further improve compliance and industry standards. Munro acknowledged the receipt of PLAG’s letter and promised a thorough reply.
Material information included in new property form
