Estate agents and property developers who handle sales of property and land in the UK are to be issued with draft guidance on how to comply with the law.
The Office of Fair Trading (OFT) has launched a consultation on the draft guidance which focuses on two pieces of law: the Consumer Protection from Unfair Trading Regulations (CPRs) and the Business Protection from Misleading Marketing Regulations 2008 (BPRs).
It follows the OFT's Home Buying and Selling study which found many estate agents said the industry needed more guidance on the law, and aims to clarify how these regulations apply to estate agency work.
The draft guidance identifies examples of trading practices that could breach the regulations as well as practical steps businesses can take to comply with the law.
It covers advertising for new business, including flyers and newspaper adverts. There is also guidance on providing advice to new clients and taking new instructions; marketing properties including when property details are put online; negotiating and making sales; plus dealing with complaints.
Cavendish Elithorn, senior director of the OFT's Goods and Consumer Group, said: “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.”
The consultation closes on 9 December 2011.
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