The Home Buying and Selling Group (HBSG) is launching an industry wide pledge to begin to introduce transparency, not just for the industry but for consumers buying and selling a home.
What does the pledge involve?
Essentially the pledge lays out in easy to digest terms what each profession, within the housing industry needs to do and when. This will help to ensure as much information is provided as soon as possible in the buying and selling process. For example, the group are recommending the industry to advise consumers to appoint a property lawyer on the day a property is marketed. This is already something that happens for auctions, in Northern Ireland and in Scotland. Some agents have introduced ‘sale ready’ properties.
The group is also recommending buyers to secure their mortgage decision in principle early and instruct a property lawyer before making an offer so their ID can be verified and money laundering checks carried out quickly.
None of this advice is ‘new’; what is different is the industry has pledged to work together to offer consistent advice to all consumers, helping to ensure they play their part and the emphasis on securing information, which could affect a sale or purchase, sooner rather than later in the process.
Access the pledge here https://homebuyingandsellinggroup.co.uk/
Does the pledge require extra steps for the industry to undertake during home moving?
No. It is focused on gathering information earlier in order to save time later and give the industry an opportunity to resolve any issues before they hold up the sale, hopefully reducing sales fall throughs and, for some, reducing the time it takes to buy and sell.
Who has signed up to the pledge?
The relevant organisations and groups involved in the home buying and selling process from agents, legal entities, surveying, removals and consumer organisations have agreed to this pledge. These include, among others, NAEA Propertymark, The Law Society, Conveyancing Association, CILEx, Society of Licensed Conveyancers, RICS, RPSA, BAR and organisations such as The NTS Estate & Letting Agency Team, The Property Ombudsman and the PRS.
Housing Minister Rt Hon Christopher Pincher MP said:
“This Government is committed to ensuring the housing market works for everyone, and our work with the industry has helped to restart the market in a way that is safe.
“I welcome this pledge from the industry and look forward to seeing it deliver a smoother and more efficient experience for all those looking to buy or sell their home.”
The group would welcome more organisations and companies to sign up to the pledge, If you wish to sign up, please email: hbsgadmin@rics.org
How will home movers be aware of the pledge?
At the start of October, there will be specific consumer communication about the pledge and what consumers need to do to help make it work.
Comments (5)
Every selling conveyancer, the moment they are instructed, prepares the contract pack – that is their only function.
The problem? The conveyancer is usually instructed only once a buyer and seller have agreed a sale.That can lose the next 2-4 weeks while they prepare everything. Many law firms even require money on account to sell, even as little as £6 to start any work.
The game changer are the deals where the conveyancer is instructed during the marketing, so they have all the marketing time to be sat ready with a legal pack once the buyer and seller agree a deal….and even be sat ready with answers to likely enquiries. Saving those 2-4 weeks, and more
The above article is highlighting the movement to have estate agents essentially DIRECT their selling clients to appoint their conveyancer then and there, not to wait until a buyer is found.
Luckily for us, we already have many estate agents recommending us at the point of marketing, and they do that as it costs nothing extra for doing so, not with us, nor would I bill my time if they chose not to in fact sell, waste of time for £50-£100, and not gerat PR either.
But any movement to make it become the norm to appoint a conveyancer at the same time as an estate agent will be good news.
(Sadly, as the quality of legal packs is at an all time low, don’t get too excited, as an early produced rubbish pack, is still a rubbish pack – and the movement, like all the past changes in the conveyancing industry, is not looking to improve the quality of the actual conveyancer – so choose your conveyancer carefully as the quality out there is the worst I have witnessed in my 25+ years.)
BUT there is a silver lining (intended as humour BTW) – If instructed at the same time as the Agents, it is now the conveyancers turn to be able to call the estate agents and chase them, perhaps with questions like ‘Got your Rightmove adverts online” or “Have you given viewing feedback to my client yet” :o) #AgentsAndConveyancersAreATeam
JustaThought, I am currently moving forward with some new technology with a significant number of my law firm membership. They see the benefits for all parties, and are not focussed on an “additional income.”
The silence from all parties involved in the house buying process in response to the question raised is deafening.
Would it be cynical of me to suggest that that may be because there is no new technology necessary and no additional income to be gained from its immediate introduction.
Motivation, time and effort will cost little but the benefits to the process could be significant.
You can justathought ! – Just like Ryder & Dutton have been doing since July. Ensure your preferred law firms can onboard clients efficiently using technology like Minerva and they get the property “contract ready” so when a buyer is found there are no delays instructing law firms and sending contracts. It really is not rocket science but needs a shift in attitude from the legal profession and for agents to explain the benefits to clients. It might require law firms to work on a no sale no fee basis which many don’t like and even search companies to do the same, but isn’t that what agents have done for many years and proved that clients prefer to pay for results !
Am I missing something obvious?
So from Monday morning all potential buyers registering with an agent must be told that no offer will be put forward unless that buyer is able to produce a decision in principle certificate and written confirmation of instruction of a conveyancer. All sellers must be told their property will not be listed until they have produced written confirmation of instruction of a conveyancer.
Am I over simplifying? The answer lies with agency as they are the first point of contact – and everyone needs to be doing this. We all know this will speed up the process but why oh why do we just keep talking about it and not do it?
The gauntlet is down – please someone tell me why we can’t do this from Monday?