Price on application is a term you would often find in property listings. It is used by estate agents to have potential buyers or renters call to find out the asking price instead of seeing it in the listing. The reasons for using POA instead of listing the property’s price can vary. It can be used if the property’s price has not been set, because it is so unique that determining a price is difficult before buyers or renters show interest, or because owners want the price to be kept private.
However, according to our estate agents in Newham, using POA in listings will no longer be the case. Here’s why:
- The Estate Agents and Letting Agents Team of the National Trading Standards has decided that ‘price on application’ or POA can no longer be used in property listings as it contradicts the current consumer protection legislation.
- NTSELAT considers the average consumer needs to know a property’s price in order to make an informed choice and they must know this from the listing, before they contact the estate agent.
- This decision is part of a series of decisions made by the NTSELAT in collaboration with the estate agency industry to improve how important information is disclosed in property listings.
- Therefore, estate agents must now list the asking price in their property listings to abide by this ruling.
- According to our estate agents in Newham, this will increase transparency as regards property asking prices and help solidify the relationship with and between property buyers, renters, landlords, and sellers alike.
- In addition, our estate agents in Newham highlight the fact that, in certain cases, using the term ‘price on application’ actually drove interested parties away from a property, causing them to think that it was out of their range. Therefore, the NTSELAT decision may have yet another benefit apart from increasing transparency.
- NTSELAT also published a list of ‘material information’ that should be disclosed in property listings. It includes the property’s council tax band, information on its tenure (freehold or leasehold), as well as if the property is in a flood risk area.
- Estate agents had until the end of May to comply with the above decision and include this information in their listings.
For exclusive listings and fully transparent property transactions, contact our estate agents in Newham today at 0207 055 0441 or info@realestateagentslondon.co.uk.
