Estate Agency Legislation

The two main pieces of Parliamentary law that apply to regulating the estate agency industry are the Property Misdescriptions Act 1991 and the Estate Agents Act 1979. The Housing Act of 2004 brought us Home Information Packs too, but which are now confined to the dustbins of Whitehall having been suspended by Eric Pickles MP, Secretary of State for Communities and Local Government the new Coalition Government in May 2010. See Hips are History here http://www.communities.gov.uk/news/housing/1591781
 
The Money Laundering Regulations also apply to the estate agency industry including online estate agents whereby they have a responsibility to demonstrate proof of identity in so far as that of their selling clients.
 
The Property Misdescriptions Act (PMA) was introduced on 27th June 1991 as a sort of parallel piece of legislation to the Trades Description Act to apply specifically to estate agents. Prompted by an abundance of flowery, wide of the mark descriptions, it sought to make agents portray property descriptions accurately. Describing a house next to a concrete crushing plant as ‘nestled in a quiet cul de sac’ was to become a no no. And stating that a retirement apartment was ‘within easy walking distance of the High Street’ when said High Street was up a two mile hill, was also deemed as inappropriate.
 
It became unlawful ‘to make a false or misleading statement that was misleading to a material degree’.
 
There are 33 prescribed matters within the PMA and which cover accuracy and honesty on price, location, type of property, condition, distance to amenities,  room sizes, time available for sale and so on. There’s a full list here http://www.opsi.gov.uk/si/si1992/Uksi_19922834_en_2.htm
 
The Estate Agents Act 1979 does a different job albeit one still designed to protect the unsuspecting public from sloppy standards. Essentially, it regulates the actions of estate agents in their day to day dealings with properties and property sellers. Stipulations include ensuring that estate agents declare any conflicts of interest in writing and that all offers to purchase are put forward to sellers swiftly and where practical, in writing. The definition and meaning of a sole agency contract must be clear and estate agents must also declare in what circumstances they earn commissions from third parties.
 
This Act explains the definition of what an estate agent is (some firms try to get around the law by claiming not to be estate agents) and includes an updated section on online internet estate agents.
 
Those that fail to comply with the law can be banned from working as estate agents, prosecuted and fined.  
 
See more here http://www.oft.gov.uk/about-the-oft/legal-powers/legal/estate-agents-act/