7 Urban Myths about Upfront Material Information – Debunked! 

Upfront material information is a new way to help the property transaction become more efficient by  making a property sale ready. With average transaction times taking 5-6 months, and over a third of properties falling through before they even reach completion, it’s in everyone’s interests to make the process more consumer-focussed and fail-safe, and upfront material information is a big step towards achieving that. 

With consumer protection regulations expected to move towards disclosing more upfront material information, changes are happening. Tools are now available for estate agents which make the process of getting sellers both market and sale ready quick, easy and convenient, with digital solutions such as the mio Sellers Information Pack (SIP). 

As with all things new, there are always questions so let’s demystify some preconceptions surrounding upfront material information and its uses.   

MYTH 1: Upfront material information is not accepted by the legal regulator

BUSTED! While the estate agent can share seller’s upfront material information with the conveyancer, conveyancers can choose the format they use to complete their due diligence. The BASPI data standard, used in the mio SIP’s digital Property Information Form, is in a format already approved by the Council for Licensed Conveyancers (CLC) and questions raised are equivalent to the Law Society’s TA6 and TA10 forms, so it can also be easily populated into those formats if required. 

The early sharing of upfront material information by the estate agent to the conveyancer improves both parties’ efficiencies and results in fewer queries. 

MYTH 2: Seller’s upfront material information shared by their estate agent cannot be relied on by the buyer

BUSTED! Upfront material information that the seller discloses in a questionnaire or data that originates from a relevant authority can be relied on by the buyer, lender, valuer and conveyancer as part of their own due diligence process, to the extent to which it has been provided.

Land Registry data originates from official HM Land Registry documents. That’s why the mio SIP gives estate agents the official Land Registry Register and Title Plan, and automatically prepopulates details into the digital Property Information Form, which reduces the information collation burden on the seller. 

MYTH 3: Buyers and lenders can’t use the seller searches

BUSTED! The Local Authority Indemnity and The Search Code enable in-date searches provided by the seller, or anyone, to be relied upon by the buyer and the lender. Statistics show that transactions go through within 6 months in 90%† of cases, and many private search companies will provide a refresher search for free.  96% of mortgage instructions will accept an in-date private search from a company that’s compliant with the search code. Providing searches upfront can help towards reducing transaction timescales, particularly if a local authority is taking weeks to produce a search report.

MTYH 4: Sellers won’t pay to provide material information before a buyer is secured.

BUSTED! Sellers will pay. A HBSG survey showed that 98% of 500 consumers thought that upfront material information was a good idea, and 60% of those said they would pay at least £300 to provide it.  During HIPS there was no issue with sellers paying and in Scotland, sellers already pay over £500 for the Home Report, without negatively impacting the number of homes up for sale. 

So, with positive consumer sentiment, it is on estate agents to inform and educate sellers of the clear benefits to getting themselves ready for market – and sale - at the point of instruction. 

MYTH 5: Upfront material information doesn’t improve transaction times or fall throughs. 

BUSTED! Agents who are already implementing upfront material information in their sales processes now have average transaction times of 12 weeks, increasing their sales pipeline turn from 2.4 to 4.5 times a year. Under the Scottish Home Report system, transaction times are typically 4 weeks faster than in England and Wales, fall throughs are 60% lower and there’s been no reduction in properties on the market. 

MYTH 6: Buyers won’t bother reading a material information summary.

BUSTED! Research by the HBSG revealed that 89% of consumers thought upfront material information would benefit buyers or both buyers and sellers, where made available. Having early access to material information improves consumer confidence in engaging in the transaction process, reduces stress and offers a smoother customer journey. 

MYTH 7: ‘Buyer Beware’ means the seller’s lawyer cannot advise them upfront about a Title defect.

BUSTED! Estate agents should not be concerned that upfront material information might put off a buyer or cost the seller to resolve defects, when the buyer would have proceeded anyway.

Case law* confirms the seller has a duty to disclose defects, so solicitors really do need to advise sellers on solving defects prior to sale agreed or advising potential buyers of defects prior to offer. Upfront material information is the convenient mechanism through which this assessment can take place and advice be given.

Consumer Protection Regulations expect estate agents to disclose all material information that they know about (or should know about) which would impact the average consumer’s transactional decision.

So, ‘Buyer Beware’ means that the seller and estate agent have to disclose defects that would impact the average consumer. If the buyer has something which would particularly impact them, for instance, the ability to park a white van, or perhaps let or alter the property, then ‘buyer beware’ would apply, and their conveyancer should carry out due diligence Title checks. 

The mio Sellers Information Pack provides an instant sale complexity score based on Land Registry data analysis from Veya. If the score warrants further investigation, agents can also order a Veya Title Check report in mio, which highlights any Land Registry associated issues with the sale of the property early, allowing the seller and their conveyancer to resolve them, and you to address these constructively with your potential buyers.

The seller is not expected to know what a buyer might consider material in their specific circumstances, if it would not be material to the average consumer. Upfront material information means sellers can secure more informed, committed buyers who are confident that their chosen property meets their future needs. 

Material information moving towards a more open, collaborative property transaction

Upfront material information improves the moving experience for buyers and sellers, and importantly, by benefiting the consumer, it benefits property professionals too. 

mio Product Director, Jon Horton, explains, “Today’s consumer has information at their fingertips for every type of transaction they make - apart from property, the greatest financial investment in most people’s lives. By changing the status quo, upfront material information makes the experience far more assured and speeds up the entire process. That is great news for consumers, business and the industry as a whole. Estate agents should be able to adopt upfront material information with confidence and ease, particularly with  digital solutions in place, like the mio Sellers Information Pack, which delivers verified information through the Property Data Trust Framework and Land Registry, to simplify the selling process and reduce delays and fall throughs.”

†UKF Handbook.

*SPS Groundworks and Building Ltd v Mahil [2022] EWHC 371 (QB), heard on appeal at the High Court