Flagging up issues that might concern a buyer and a draft financial statement on the likely cost of completion are two of 22 recommendations set out in a draft protocol unveiled by the Digital Property Market Steering Group (DPMSG) for consultation.
According to the protocol document, the protocol sets out how estate agents and house builders can satisfy their legal obligations to provide relevant material information, and how the seller’s conveyancer can act in the best interest of the client and reduce risk by collating upfront property information.
If the protocol is followed, the material information will enable mortgage intermediaries to identify which lenders will lend and enable the valuer to value on fact rather than assumption. The buyer’s conveyancer will be able to identify the core information and conduct due diligence on issues that might affect the buyer’s intended use and enjoyment.
The protocol details information and prescribed documents that need to be collated by the seller and search information that the buyer’s conveyancer will need to consider. The seller’s and buyer’s sides are each given 11 recommendations to follow.
Recommendations for conveyancers acting for the seller include digital identity verification and anti money laundering checks once they have been instructed, and checking all the information that has been collated for potential issues.
Recommendations on the buyer’s side include establishing whether the client has access to a smart phone to be able to sign digitally, requesting the material information on which the offer was based, knowing the buyer’s intended use for the property, and providing a draft financial statement as soon as possible on the likely cost of completion.
The steering group said: ‘Those who have collaborated in the collection and delivery of upfront information have seen transaction times halve and failed transactions plummet – staff are happier being able to satisfy their customers and risk reduces as one source of truth is created.
'Would a Digital Property Information Protocol help your teams learn what is available to them and what they can expect from other stakeholders? Let us know what you need to educate staff and customers and ensure that all stakeholders collaborate effectively in home moving transactions.'
The survey closes on 1 April.
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