Do You Know Your Material Information ABCs?

If you're a deal sourcer - especially one working direct to seller - it's absolutely critical you understand the Material Information you are required to gather before you present a property to an investor. 

What is Material Information?

This is the information you share with a prospect or investor who is interested in purchasing a property / deal through you. The information required is varied per property type, however there are elements such as room sizes, for example, which are critical and a must for sharing. 

Rightmove and Zoopla are currently adapting their platform to meet the new guide requirements so that all agents gather and report the correct material information for their properties. 

Not being aware or gathering the right information could land your business in hot water, especially if an investor purchases a property and later finds out not all information was presented from the get go. 

If a complaint is made, the property redress schemes (TPO and PRS) could well award against you.

What are the ABCs?

No, we're not taking you back to school. 

Previously, Consumer Protection Regulations have stated you can't hide or mislead about what they claimed was 'material information', but there has never been a definitive list of what that material information is.

Now there is, as NTSELAT (National Trading Standards) have created a new guide which breaks material information down into three sections: A, B, and C. 

There is compulsory information that all property agents (estate agents and sourcing agents) must gather and be aware of when reviewing any property. This information must be made clear to anyone you are presenting the information to. 

It's Not Only What an Estate Agent Would Use

Material information for your investor could be about their specific investment criteria, for example HMO Article 4 area.

So the investors that you're working with, what are their strategies and what is the absolute key information that they have to have to be able to make an informed choice not just about whether to buy or not, but actually whether to go and view a property.

I'm a Deal Sourcer - What Should I Do Next?

We recently held a NAPSA Webinar which ran through the key sections of the guide, and we provided Members with tips for when gathering material information for their own property deals. 

The webinar video is now recorded and split into 7x short 5 minute videos, covering the key areas of the guide - available to all NAPSA Members to watch on repeat if they'd like!

NAPSA Members can watch the webinar here: https://napsa.org.uk/material-information-for-sourcing-agents-webinar-video/

If you're not a NAPSA Member and still wondering what to do next, our recommendation is to download NTSELAT's guidance on Material information. 

Read it carefully and make sure you understand parts A, B and C. 

Please have a really good think about how that affects how you work as a sourcing agent, especially when you're direct to the seller and there's no estate agent included.

You are expected to include this information even in your advertisements to pull people in for the main part of the deal. Avoid yourself a potential find - or annoy your investors - and get to know Material Information!