Many people will be aware of the problems of obtaining accurate information on the internet. As a law firm we frequently receive communications from individuals telling us what the law on a particular matter is. Often this is based on poorly written commentary or, more amusingly, on the law in other parts of the world.
For agents this is a particularly important issue as property advertising on the internet continues to grow. The risks of misrepresentation and misdescription (which for estate agents is prosecutable under the Property Misdescriptions Act 1991) are growing and the modern phenomena for sites taking automatic data feeds from agents own software means that small (and otherwise inconsequential errors) can rapidly be magnified into major problems.
However there is some good news. A recent case in the Court of Appeal dealt with the liability of a company for incorrect information appearing on its website. In Patchett v SPATA the Court of Appeal held that the Defendant was not liable for a misleading representation on its website in relation to the quality of third party contractors. This was primarily because the website “urged independent enquiry”. The website made reference to other documents supplied by the Defendant and set out a series of enquiries that should be made before relying on the contractors mentioned on the site.
Agents would be well advised to take this on board by making clear on their websites that further details of properties are available and should be sought before reaching a decision on rental or purchase.
However, agents should also take care of the details appearing on their websites and on other internet portals and should make sure they have a proper procedure in place to review this information and check its accuracy on a daily basis. Not only will this help avoid mistakes but it will also provide a defence against any threatened prosecution under the Property Misdescriptions Act.
Filed under: Uncategorized, internet, litigation, negligence, property details
9 September, 2009 • 21:27 0
Mortgage Repossession Protocol Changing Behaviour
It seems that the new mortgage repossession pre-action protocol (which we talked about here) is having an effect on mortgagee’s behaviour with a dramatic drop in repossession actions.
Whether the protocol has been responsible for this or whether mortgagees are less inclined to take possession due to the difficulty in recovering their investment by selling the property is a moot point. The key issue from the point of view of the landlord and tenant professional is the increased willingness of mortgagees to appoint receivers and reach sensible commercial arrangements.
From the tenant’s point of view this means that they may be able to remain in a property they have rented by paying rent to a receiver appointed by the mortgagee. However, it should be remembered that the receiver is frequently not accepting the landlord’s responsibilities (just the money!) and so it will still be necessary to look to the landlord to repair the property.
For buy-to-let landlords the new willingness of mortgagees to reach sensible commercial arrangements coupled with a reduction in interest rates may be sufficient to allow them to weather the downturn. However, it is notable that many mortgagees are refusing to remortgage with buy-to-let landlords so this may not be sufficient.
Whether this new attitude from mortgagees will continue when they can more easily sell property remains to be seen but the current change in attitude will benefit landlords who make an effort to negotiate with their mortgagee if things are difficult.
Filed under: Uncategorized, comment, Law of Property Act 1925, mortgages