House buyers who use intermediary websites face risks

Changes to the laws governing estate agency in Britain could leave homebuyers with no more protection than if they were buying a car in a private deal, The Property Ombudsman has warned.

The Government has relaxed the regulations on intermediary websites which allows them to advertise properties and erect for sale boards as if they were a genuine 'High Street' estate agency. Despite this, all responsibility will lie with the seller who will be left to the marketing, viewings and negotiations with the buyer - all of which would normally be the responsibility of a genuine 'High Street' estate agent.

Problems may then arrive for the buyer when they could be lead to believe the property they are buying is in a certain condition when there may well be more significant work needed.

Another issue that does not seem to have been highlighted, is covered by the Money Laundering Regulations 2007 act - which requires estate agents to carry out identification checks and due diligence on sellers, and if the estate agent is really on the ball they will do this for buyers also, but the latter is not required by the act.
The changes to the rules on intermediary websites does leave this rather open as to quite who will run these checks on both buyers and sellers alike, and does seem to leave somewhat of a loophole for those who are selling/buying and may well assist money laundering without knowing...

Despite the loosening of regulations on the intermediary websites, the laws governing 'High Street' agents are looking to tighten. Currently agents are covered by the Property Misdescriptions Act (PMA), but it is looking likely that they will soon be covered by the Consumer Protection from Unfair Trading Regulations (CPRs) which currently apply more to general retail sales.

If you're looking to buy or sell then be aware of the responsibilities you, or the agent you choose (depending on the route you take) has, to ensure for a smooth, problem free transaction – as saving a small amount of money up front with not using a reputable estate agent – could cost tens of thousands in unscrupulous buyer re-negotiation and aborted sales, not to mention the stress and zero security of inviting a stranger into your ‘Home’ .