New Law Society Protocol Forms – How do these affect sellers?

New Law Society Protocol Forms – How do these affect sellers?

Key Takeaways:

• The new forms aim to provide comprehensive information to improve the home buying and selling process in the UK and should be completed before a property is put on the market.
• The new forms require more upfront information to be given by sellers and potentially exposing sellers to increased risks of liability for misrepresentation.
• By addressing potential issues upfront, the form helps to minimise the risk of sales falling through and promotes transparency.
• Early contact between sellers and their conveyancers is essential and can help address issues that may affect the sale process and ensure a smoother transaction.
• At mlplaw, we can assist sellers from the outset to fully understand their obligations, to protect their interests and to facilitate a quick and smooth transaction.

What is a TA6 Property Information Form (TA6)?

The TA6 is the Law Society’s standard form which is to be completed by a property seller, the purpose of which is to give a potential buyer detailed information about the property being purchased.  It is one of three standard Law Society protocol forms a seller completes.  It contains questions on a number of issues, ranging from boundaries, disputes, planning notices and proposals, rights and informal arrangements and environmental matters.

It enables a buyer to raise specific additional enquiries with the seller on any matters arising from the form and to make an informed decision as to whether to proceed with the purchase.

However, it might be quite late in the conveyancing process when a buyer can make such an informed decision and by then, both the seller and the buyer would have incurred costs, such as conveyancing fees and conveyancing searches.  A seller may have also lost out on an opportunity with a previous interested buyer and an aborted sale may have severe implications on any related purchase.

Why has the TA6 been updated?

The TA6 has been updated and becomes mandatory for all conveyancing firms accredited by the Law Society’s Conveyancing Quality Scheme to use from 25^th June 2024.

It has been updated to include information recommended by the National Trading Standards Estate and Letting Agency Team (NTSELAT) in its Material Information in Property Listings (MIPL), published in November 2023.

The updated TA6 now asks the seller to provide substantially more detailed information about the property at the outset of the transaction.   Under the MIPL, this “material information” should be disclosed to potential buyers when the property is put on the market.  In theory, this should mean that a buyer can obtain a comprehensive understanding about the property and make an informed decision before putting forward an offer for the property.

There is no legal requirement to complete the Law Society protocol forms and they can be completed in full, in part or not at all.  However, omissions or a decision not to complete the forms may well lead to negative inferences drawn by the buyer and affect the sale.

What does this mean for sellers?

Pros:

• The increased transparency will hopefully see less transactions falling through at the eleventh hour due to undisclosed potential issues and hopefully save costs for both sides.
• If potential issues are revealed at the outset, the seller could look to resolve them as early as possible with the assistance of their conveyancer which may avoid delays and complications down the line.
• The seller would have to incur legal fees at the outset, but arguably these fees would have to be incurred in any event, whether at the start of the transaction or towards the end.

Cons:

• Sellers may not be comfortable with the idea of incurring fees and expenses before a property is put on the market but, unfortunately, this will now become the norm. It is now a question of “when” the fees will be incurred rather than “if” they will be incurred.
• The main concern for sellers under the new TA6 will be “increased liability”.

When completing any of the Law Society protocol forms and responding to any enquiries before contract, the seller must respond to the questions on the basis of their own knowledge.  Although sellers are not expected to have expert knowledge of legal or technical matters or matters that occurred prior to their ownership of the property, they must take care in ensuring that the answers to the questions are accurate and truthful.  If having completed the forms, but before completion of the sale, the seller become aware of any information that would alter any of the replies, they must inform their conveyancer immediately so that the buyer can be notified accordingly.  If the seller provides incorrect information in the forms and replies to enquiries, they may find themselves subject to a claim by the buyer for misrepresentation.

Liability – Consequences of incorrect information

Liability for misrepresentation may arise if a buyer relies on information provided, including replies to enquiries, by a seller that is inaccurate or misleading.  If a claim for misrepresentation is successful, a court can rescind the contract and/or award damages to the buyer.  In the context of a house sale, the damages awarded to a buyer could be substantial.

How can mlplaw help?

We specialise in helping sellers complete as quickly and smoothly as possible, including guiding them on filling in the Law Society protocol forms.

We encourage earlier contact with sellers so that we can assist them with understanding their obligations when completing the forms and to address any potential issues, such as title defects, at the outset of the transaction.

We offer a fixed fee service for assisting sellers with the completion of the forms which we believe gives sellers comfort in knowing their initial financial outlay should a buyer not be found and budget accordingly.

If you need any help with your sale, please contact us at 0161 926 9969 or you can run an online quote by using our online quoting tool via https://www.mlplaw.co.uk/residential-conveyancing-services/