In March 2024, the Law Society issued a revised version to the TA6 and TA7 Property Information Forms (opens a new window). Although it will not become compulsory for conveyancers to use the updated TA6 form until 15 January 2025, adopting the form as soon as possible will minimise the risk of regulatory fines, and limit firms’ exposure under their professional indemnity insurance (PII).
Below, we provide some key information on the changes, the rationale behind them, and the benefits of early adoption.
Why the changes?
Under the Consumer Protection Regulations (CPRs), there are obligations to disclose certain Material Information to consumers about residential properties. The National Trading Standards Estate and Lettings Agency (NTSELAT) issued guidance on what should be classified as Material Information under the three key categories: Part A, which came into force in 2022; and Parts B and C, which came into force in November 2023.
Following the guidance, several changes have been made by those involved in the buying and selling process of homes, including estate and lettings agents asking additional questions about the property, and property platforms such as Rightmove adding extra fields in their listing templates.
The purpose of the updated guidance is to further aide buyers/renters by ensuring they have access to key information at an earlier stage in the buying/renting process. This then allows them to make a more informed decision on whether they’d like to proceed with the property. By reducing the likelihood of a prospective buyer/renter finding out detrimental information about the property later on in the process, the new guidance should mean that fewer transactions fall through at a late stage (i.e. after conveyancers have been instructed).
What’s changed?
The revised TA6 and TA7 forms include updated and new questions to incorporate the recent NTSELAT material information requirements. This will ensure that material information is shared between each party to the transaction and their conveyancers.
Implications for conveyancers
For conveyancers, the updated guidance may mean that they are instructed earlier on in a transaction. They may also be able to provide more accurate advice to their clients, given that key information should be more readily accessible. Overall, this may encourage quicker transactions from start to finish, resulting in more satisfied clients.
However, there are risks that come from the update. Failure to use the updated forms beyond the deadline (and thus fail to comply with CPR requirements) could result in fines, and penalties. This is in addition to the consequences of any failure to comply with Solicitors Regulation Authority (SRA) principles, such as treating customers fairly.
I have until 15 January 2025, why should I start using the new form now?
Following feedback from its members, the Law Society decided to postpone the compulsory use of the new TA6 form until 15 January 2025. This now gives conveyancers the option to use the previous version (Fourth Edition, Second Revision, 2020) until this date or to start using the new Fifth Edition now.
However, given that conveyancers will need to adopt the Fifth Edition form from January, conveyancers should consider updating their processes to use the new form as soon as possible. By doing this, conveyancers will already be complying with their duties and will minimise any risks of any potential complaints, fines, and penalties.
There are further practical reasons to adopt the revised forms. Some of the additional information will be easy to obtain, and may already have been disclosed by sellers to their agents. It is therefore quicker and easier to share this between conveyancers at the same time. All parties involved in the process from agents to conveyancers should all have the same information about the relevant property – or where there are any discrepancies, they should be easier to identify and rectify at the earliest stage possible.
Insurance and reputational considerations
Potential implications of administrative errors around information provided are serious. Following the January deadline, conveyancers found not to be using the mandatory forms, where an issue arises, may be found to be negligent in their duty of exercising reasonable skill and care when providing services to a client. Additionally, a firm may be in breach of their professional duties with the regulator. While a PII policy may cover a liability claim in the civil courts, fines and penalties are usually excluded under PII.
Firms are also likely to be exposed to reputational harm where they fail to comply with the requirements with the consequences of unsatisfied clients and loss of business.
Ultimately, it’s important for firms to be aware of the guidance and use the new forms issued by the Law Society to ensure compliance with it, to avoid increasing PII costs and any reputational consequences.
Further guidance
NTSELAT: Material Information - National Trading Standards (opens a new window)
