Misrepresentation to a buyer

Friday, November 8, 2024

Key topics

Misrepresentation to a buyer

 

Award

£1,000 compensation

 

Resolved by: proposed decision

What happened?

The complainant said:

  • agent’s floor plan in the advertisements substantially exaggerated the actual size of the flat
  • the floor plan quoted the size of the flat as100m²
  • other independent estate agents measured the size of the flat as 80m²
  • this information provided by the agent affected their decision to buy the property which resulted in a difference in the property’s value  

 

The agent responded, saying:

  • their advertisement contained a disclaimer which stated that while every attempt has been made to make sure the floor plan is accurate, the measurements of doors, windows, rooms and any other items are approximate and no responsibility is taken for any error, omission or mis-statement
  • this means they are not responsible for any oversight

What evidence was provided?

Agent’s floor plan, other floor plans, emails and other correspondence.

 

What was decided and why?

  • Estate agents must comply with the Consumer Protection from Unfair Trading Regulations 2008 (CPR’s)
  • The Guidance on Property Sales says that it is a breach of the CPR’s for businesses to give misleading information to consumers where this causes or is likely to cause the average consumer to take a different transactional decision
  • The agent’s floor plan misled the complainant and affected their decision to buy the property
  • This is known as a misleading action and the agent was to:
    • pay £1,000 compensation
    • make sure that all future advertising meets professional standards
    • put processes in place to make sure they carry out their due diligence when checking all floor plans so that they comply with industry practice

How can you avoid this happening in future?

Agents must take all reasonable steps to:
  • make sure that any information used in the property particulars and other marketing information is accurate and not misleading
  • they carry out all due diligence and all floor plans should contain accuratemeasurements and be approved by theseller
  • make sure that all disclaimers are fair and reasonable and do not include a disclaimer for such a substantial errorin the floorplan measurements
  • carry out all their responsibilities with due care and attention, as they may remain responsible even if a third party is involved

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