The Property Ombudsman (TPO) has warned agents risk falling foul of Consumer Protection from Unfair Trading Regulations (CPR) when conducting video viewings.
TPO said it recognised more agents are turning to video viewings during lockdown and reminded firms that they still have an obligation to ensure material information is conveyed.
The regulator is seeking assured advice from its primary authority partner Warwickshire County Council so it can define best practice for agents and give them a defence against enforcement action as long as the guidance is followed.
TPO said it hasn’t received any complaints regarding video viewings so far.
An alert from TPO said it is always advisable for a rental property to be viewed, citing point 9a of its Code of Practice for Residential Letting Agents, which states: “It is not advisable for you to accept, or recommend a landlord to accept, an offer on a property that has not been viewed either by the prospective tenants themselves or by a suitably authorised representative of the prospective tenants, for example, an appointed relocation agent or direct associate.
“Exceptions might be made when a prospective tenant resident overseas is willing to be contacted by letter, fax or electronic means.”
In sales, TPO suggests video viewings are used by agents as a filtering exercise and that any serious buyers are provided with an ‘offer agreed subject to viewing.’
If a prospective buyer or tenant progresses a transaction after a live or pre-recorded viewing, TPO suggests agents send the viewer a download.
It also advises agents to keep video viewings on file, which could then be called upon in the event of a dispute where a consumer feels they have been misled.
Katrine Sporle, property ombudsman, said: “We appreciate that agents are having to adopt new ways of working to accommodate the Government restrictions currently in place, and similarly we are working hard to ensure we provide the right guidance to help agents do this professionally and protect consumers from unfair practice.
“We fully appreciate that agents may not be in complete control if a video viewing has been recorded or is being conducted by the seller or landlord.
“In this instance, we would advise agents to remind the vendor or landlord of the CPR responsibilities upon them so that agents can keep a record of what information was shared and when.”
Comments (7)
I am vindicated by my posts on this same subject last week. This raised the issue that some agents were using it as a short cut to get tenants into properties which frankly had nothing to do with doing the job properly, but turning over commission, neglecting responsibilities and putting both tenant and landlord at risk for their own financial gain.
Video tours are a tool to help agents and customers. Lettings business cannot be done ‘only this way’ and anyone who ignores Due Care and Diligence and who thinks otherwise is deluded and will end up in court either by regulators or by the landlord or by the tenant. Covid -19 has not put consumer protection on hold. Lettings can only be done one way … properly and Video tours with no actual visit and checks prior to entering into a legal agreement has not replaced it. Paper pushing is not how to do lettings business.
Regulatory authorities are always months/years behind innovation and development and this is another example of the TPO failing to understand the changes being brought about by this new way of doing business. The chances are none of the TPO board have experienced a virtual viewing and therefore poorly placed to comment. Equally agents forwarding owner produced videos do have a legal obligation under CPR to check accuracy or they run the risk creating problems for themselves. Virtual viewings are here to stay and will be the new process post lockdown as will be working from home.
“Equally agents forwarding owner produced videos do have a legal obligation under CPR to check accuracy…”
Which they do how, precisely, if the property has not been physically inspected prior to – or after – listing?
As you say – “creating problems for themselves” – which, much as I hate to agree with the useless bunch, is exactly the point that TPOmb are making.
Carry on doing VIRTUAL viewings if need be. NO PHYSICAL VIEWINGS!!
Some may not have a business to go back to to anyway – so the virtual viewing route could be the only hope they have to keep their head above water.
Worry about CPR after the dust settles. TPO are useless and haven’t got a clue anyway!!
This is everything that is wrong with the world of governance in general . An industry innovates in a crisis to try to support itself and it’s customers and jobs worth attitudes create barriers .
reall viewings are not recorded or kept on file .
let decent businesses do business effectively and efficiently .
I completely agree. Reading this article today has killed a bit of my faith in humanity!! We are all desperately trying to adapt and find ways not to let tenants or landlords down and this is the sad response.
We are all just trying to keep our businesses alive. We try and innovate and adapt to a completely new set of circumstances and the TPO completely miss the point!