New Rules for Selling a Commercial Property

Posted on 1 October, 2011 by MOVEHUT

The Office of Fair Trading (OFT) has produced a draft report, titled ‘OFT guidance for estate agents’ which details new rules for how estate agents and property developersmust handle the sale of a property, to meet the terms of UK law. The new rules will not only affect how commercial properties are sold, but also residential properties as well.

The new guidance will clarify how estate agents and developers should operate when selling a commercial property. It also specifies how businesses can obey the new law and also gives examples of what kind of business practices could breach the guidelines. The sections include:

  • advertising for new business
  • dealing with complaints
  • giving advice to clients
  • marketing commercial properties
  • negotiating and making sales.

Cavendish Elithorn, Senior Director at OFT expressed, “Buying a property is one of the biggest purchases people make and can also be one of the most stressful. Unfair business practices can cause substantial consumer harm and this guidance has been designed to help estate agents and property developers understand what they need to do to comply with the law.” Some actions that estate agents that would breach the new guidelines include:

  • advertising a broad price range, knowing the seller will not sell at the lower price
  • advertising private parking, when their is a shared road
  • leaving sold commercial properties on the website or in the shop window
  • not stating what repairs the commercial property needs
  • stating the commercial property is freehold, but not advertising that other buildings are leasehold
  • using outdated photographs.

If an estate agent or property developer breaches the guidelines, it could result in them giving details of the actions, being summoned to court or paying a fine up to £5000.

The draft report welcomes view and comments from anyone in the sector. To comment, you will need to contact David Hart. You can write to him at: Goods and Consumer Group, Office of Fair Trading, Fleetbank House, 2-6 Salisbury Square, London, EC4Y 8JX. Or you could email him on: david.hart@oft.gsi.gov.uk. Comments will only be accepted until 9 December 2011. OFT particularly want to hear from:

  • estate agents
  • property developers
  • trade associations
  • professional bodies
  • the property ombudsmen
  • Local Authority Trading Standards Services.

OFT are responsible for making sure businesses conduct their practices in a fair and open way. They are also in charge of ensuring that there is as much competition as possible, so consumers have the freedom of choice.

It is not yet clear if and when the new rules will be enforced, but the guidelines seem to protect buyers more than sellers. So will the new rules just simply just hinder the property market and make it harder for people to sell their commercial properties?

 




Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.


Recent Posts

Interest Rates Impact on Commercial Property

Commercial Property Investment Outlook for 2023

The best places to stay on the Riviera

The latest property data has identified Newquay as the fastest property seller’s market in the UK

Investing in your garden can increase your property’s value

French Riviera temping high-end homebuyers

How can the ownership rights of my commercial property impact a business sale?

Should I incorporate virtual property viewings permanently?

Investment expected to increase across Asia-Pacific in 2021

UK property industry slows as the conclusion of tax break looms

BNP Paribas cautioned investors on Friday as debt-trading bonanza that increased its earnings this past year

Over 300,000 property purchases fell through in 2020 – we show the most frequent motives and the best way to get your house sale back on track

House Prices in the Capital Surpass £500,000

Optimism from the Bank of England’s chief economist

The most expensive commercial properties.

Businesses operating from shared premises will miss out on grants