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  • Legal FAQs

    Should agents tell the truth about a Licence

    I have been doing the rounds today talking to staff in Estate Agents who are now selling

    houses in the new Additional Licence areas

    I asked now that all the Properties in there area will be subject to a Licence will they advise a Landlord Purchaser that a Licence will be required

    I did not get a clear answer from the Agents

    I think it will be up to the Landlord to used DD on this

    But I think Agents should be truthful if they know its a licence is required

    It would be interesting to know from a Solicitor if on searches it is highlighted a licence area

    Landlords now need to factor this in when they do DD

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    In the area where I live the EA do not actively mention that a licence may be required. Its not something along the lines of "... Will make a good investment opportunity for someone subject to local licensing being obtained". So I would imagine they'll eventually be just as vague in your area.

    I guess they are in the sales business and don't want to put people of by mentioning anything that might deter customers putting their foot through the door. 

    I wonder how many EA let out properties knowing that the place they have put out to let requires a licence but they ignore that part and still do the lettings.
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    Saagar

    Disclaimer: I have no legal expertise nor am I a qualified advisor on any subject. A humble landlord using an open forum to exchange ideas and experiences. 


    If the EA does that then they're committing an offence. No agent worthy of the name would chance it as the penalties are too high.

    On telling a prospective buyer about licences, we always make a point if doing so. My experience is that 99% of prospective investment buyers already know anyway.
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    Andrew McCausland

    Hamilton Square Estates Ltd

    Wirral Property Group Ltd

    Sourcing and renovating investment property since 1994


    Definitely agree there that investors tend to be aware. Maybe because the EA in my area might know my profile that they are not mentioning it to me personally but might be giving the advice to others.

    In my personal experience they're not actively telling me about licensing especially ones where they fall in Article 4.
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    Saagar

    Disclaimer: I have no legal expertise nor am I a qualified advisor on any subject. A humble landlord using an open forum to exchange ideas and experiences. 

    A LL is supposed to be a pro, not a retail buyer, and this is so fundamental to their business that they should be checking, knowing and asking lawyer to confirm too. The principal role of an EA is just to sell houses?
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    Can I ask would a Solicitor know is it mentioned on searches

    a Local Solicitor may know but the Bigger Solicitors may not have as much local knowledge

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    I find Conveyancing Solicitors ( in the main ) haven't got a clue about Housing law.  Seen it so many times with Deposits, Licenses, copies of the original AST's   etc

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    This is a really interesting point.  I've just overseen the sale of a leasehold flat, for which the buy to let investor would require a license.  The agent, who held the license for our client, (the vendor) took no action re the licence, upon completion of the sale, nor in respect of the buyer.  So, after completion, I informed the landlord licensing department at the local authority of the change of ownership, and I asked the agent to notify the local authority of the change of ownership.  Unless I had specifically addressed this, the license would still be in place on our client's property, with reference to our client.  The licensing requirement didn't come up on the solicitor's searches, and isn't mentioned in the TA forms - if the local authorities are going to continue with this licensing lark, this process needs reviewing!  Yes, it's the buyer's responsibility to carry out thorough checks/due diligence, but vendors also need to be aware that they may need to action the licence, on completion of a sale.

    Helen

    The Property Investor's PA


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    Helen Godbold-Eade

    Freelance Administrator for Property Investors / Entrepreneurs

    http://www.like-clockwork.co.uk

    Find me on LinkedIn: http://www.linkedin.com/in/heleneade/


    Why not take it back one stage and ask the question "should estate agents tell the truth"?!

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