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Property
Misdescriptions Act 1991 (c. 29) 1991 c. 29 - continued
An
Act to prohibit the making of false or misleading statements
about property matters in the course of estate agency business
and property development business. [27th June 1991]
Be it enacted by the Queen's most Excellent Majesty, by and
with the advice and consent of the Lords Spiritual and Temporal,
and Commons, in this present Parliament assembled, and by
the authority of the same, as follows:—
Offence
of property misdescription
1.—(1)
Where a false or misleading statement about a prescribed matter
is made in the course of an estate agency business or a property
development business, otherwise than in providing conveyancing
services, the person by whom the business is carried on shall
be guilty of an offence under this section.
(2)
Where the making of the statement is due to the act or default
of an employee the employee shall be guilty of an offence
under this section; and the employee may be proceeded against
and punished whether or not proceedings are also taken against
his employer.
(3)
A person guilty of an offence under this section shall be
liable—
(a) on summary conviction, to a fine not exceeding the statutory
maximum, and (b) on conviction on indictment, to a fine.
(4)
No contract shall be void or unenforceable, and no right of
action in civil proceedings in respect of any loss shall arise,
by reason only of the commission of an offence under this
section.
(5)
For the purposes of this section—
(a)
"false" means false to a material degree, (b) a statement
is misleading if (though not false) what a reasonable person
may be expected to infer from it, or from any omission from
it, is false, (c) a statement may be made by pictures or any
other method of signifying meaning as well as by words and,
if made by words, may be made orally or in writing, (d) a
prescribed matter is any matter relating to land which is
specified in an order made by the Secretary of State, (e)
a statement is made in the course of an estate agency business
if (but only if) the making of the statement is a thing done
as mentioned in subsection (1) of section 1 of the [1979 c.
38.] Estate Agents Act 1979 and that Act either applies to
it or would apply to it but for subsection (2)(a) of that
section (exception for things done in course of profession
by practising solicitor or employee),
(f)
a statement is made in the course of a property development
business if (but only if) it is made— (i) in the course of
a business (including a business in which the person making
the statement is employed) concerned wholly or substantially
with the development of land, and (ii) for the purpose of,
or with a view to, disposing of an interest in land consisting
of or including a building, or a part of a building, constructed
or renovated in the course of the business, and
(g)
"conveyancing services" means the preparation of any transfer,
conveyance, writ, contract or other document in connection
with the disposal or acquisition of an interest in land, and
services ancillary to that, but does not include anything
done as mentioned in section 1(1)(a) of the Estate Agents
Act 1979.
(6)
For the purposes of this section any reference in this section
or section 1 of the Estate Agents Act 1979 to disposing of
or acquiring an interest in land—
(a) in England and Wales and Northern Ireland shall be construed
in accordance with section 2 of that Act, and (b) in Scotland
is a reference to the transfer or creation of an "interest
in land" as defined in section 28(1) of the [1979 c. 33.]
Land Registration (Scotland) Act 1979.
(7) An order under this section may—
(a)
make different provision for different cases, and (b) include
such supplemental, consequential and transitional provisions
as the Secretary of State considers appropriate; and the power
to make such an order shall be exercisable by statutory instrument
which shall be subject to annulment in pursuance of a resolution
of either House of Parliament.
Due
diligence defence
2.—(1)
In proceedings against a person for an offence under section
1 above it shall be a defence for him to show that he took
all reasonable steps and exercised all due diligence to avoid
committing the offence.
(2)
A person shall not be entitled to rely on the defence provided
by subsection (1) above by reason of his reliance on information
given by another unless he shows that it was reasonable in
all the circumstances for him to have relied on the information,
having regard in particular— (a) to the steps which he took,
and those which might reasonably have been taken, for the
purpose of verifying the information, and (b) to whether he
had any reason to disbelieve the information.
(3)
Where in any proceedings against a person for an offence under
section 1 above the defence provided by subsection (1) above
involves an allegation that the commission of the offence
was due— (a) to the act or default of another, or (b) to reliance
on information given by another, the person shall not, without
the leave of the court, be entitled to rely on the defence
unless he has served a notice under subsection (4) below on
the person bringing the proceedings not less than seven clear
days before the hearing of the proceedings or, in Scotland,
the diet of trial.
(4)
A notice under this subsection shall give such information
identifying or assisting in the identification of the person
who committed the act or default, or gave the information,
as is in the possession of the person serving the notice at
the time he serves it.
Enforcement.
3.
The Schedule to this Act (which makes provision about the
enforcement of this Act) shall have effect
Bodies
corporate and Scottish partnerships
4.—(1)
Where an offence under this Act committed by a body corporate
is proved to have been committed with the consent or connivance
of, or to be attributable to neglect on the part of, a director,
manager, secretary or other similar officer of the body corporate
or a person who was purporting to act in such a capacity,
he (as well as the body corporate) is guilty of the offence
and liable to be proceeded against and punished accordingly.
(2) Where the affairs of a body corporate are managed by its
members, subsection (1) above applies in relation to the acts
and defaults of a member in connection with his functions
of management as if he were a director of the body corporate.
(3)
Where an offence under this Act committed in Scotland by a
Scottish partnership is proved to have been committed with
the consent or connivance of, or to be attributable to neglect
on the part of, a partner, he (as well as the partnership)
is guilty of the offence and liable to be proceeded against
and punished accordingly.
Prosecution
time limit.
5.—(1)
No proceedings for an offence under section 1 above or paragraph
5(3), 6 or 7 of the Schedule to this Act shall be commenced
after— (a) the end of the period of three years beginning
with the date of the commission of the offence, or (b) the
end of the period of one year beginning with the date of the
discovery of the offence by the prosecutor, whichever is the
earlier.
(2)
For the purposes of this section a certificate signed by or
on behalf of the prosecutor and stating the date on which
the offence was discovered by him shall be conclusive evidence
of that fact; and a certificate stating that matter and purporting
to be so signed shall be treated as so signed unless the contrary
is proved.
Financial
provision
6.
There shall be paid out of money provided by Parliament any
increase attributable to this Act in the sums payable out
of such money under any other Act.
Short
title and extent.
7.—(1)
This Act may be cited as the Property Misdescriptions Act
1991.
(2)
This Act extends to Northern Ireland.
©
Crown copyright 2004 Prepared 2 December 2004
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