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Aipedia: Estate and letting agents
App-generated floorplans and AI measurements are fine for marketing if they are accurate, but a wrong total area can mislead buyers and affect price. Square footage can be a headline figure on listings.
Part of: AI in estate and letting agents
In short
Agents may produce floorplans with phone scanning apps, 360 cameras and AI that estimates dimensions from photos. These tools are fast but can misjudge room sizes, include or exclude spaces inconsistently and produce totals that look precise but are not. TPO Code 7i requires accurate, non-misleading marketing, 7m makes the agent liable for anything it has reason to doubt and 7j requires seller approval of particulars. Section 226 of the DMCC Act 2024 also applies. A buyer who paid more because of an overstated area may claim misrepresentation. PI may respond, subject to the wording.
The traditional floorplan was drawn from tape or laser measurements on site. Some agents now scan rooms with a phone or tablet app, capture a 360 tour, or upload photos to a service that uses AI to build the plan and estimate dimensions. The software labels rooms, calculates a total internal area and outputs a branded plan for the portals. Some tools also produce 3D models and virtual tours from the same capture.
Floor area can drive buyer comparisons and price per square foot. That makes the total figure on the plan part of the marketing, not just a drawing.
Accuracy varies with the method. Scanning apps that use depth sensors may do better than tools estimating sizes from ordinary photos, and both struggle with irregular rooms, sloping ceilings, dark spaces and reflective surfaces. Agents may not know which measurement convention the software applies or how it treats walls, stairs and restricted-height areas unless they ask the supplier.
The marketing clauses are in the TPO Code of Practice. A disclaimer saying a plan is "for illustration only" may help on small differences, but it is unlikely to protect an agent from an obviously wrong figure it should have checked. RICS-regulated agencies also need a documented reliability decision on material AI outputs; see the RICS AI standard.
Illustrative: an agent uses an AI floorplan app on a cottage with attic rooms. The app counts the whole attic as floor area, and the listing headline quotes a total well above the usable space. A buyer compares price per square foot with nearby sales and offers on that basis. After completion, a measured survey for an extension shows the real area. The buyer claims the overpayment from the seller, who looks to the agent that prepared the plan.
A claim that the agent negligently overstated floor area would usually be considered under the agent's PI policy as arising from its professional services, subject to the terms. Insurers may look at whether the agent checked the output, whether the seller approved the plan and what the disclaimer said. If a third-party floorplan provider made the error, the agent may have a contractual claim against it, but the buyer and seller will usually go to the agent first. See the estate and letting agents PI guide and does PI cover AI errors. Surveyors face similar issues; see AI measurement for surveyors.
How Apex helps: Apex arranges PI for estate agents and can confirm how your policy treats claims about floorplans and measurements. See AI in estate and letting agency for related guides.
Some may be accurate enough for marketing, but they still need checking. Spot-check room sizes, confirm what is included in the total area and make sure the plan reflects the current layout before the seller approves it under TPO 7j.
It may help with minor differences, but it is unlikely to protect an agent from a clearly wrong figure it had reason to doubt. TPO 7m makes the agent liable for such statements.
Some do, because buyers may compare price per square foot. If you show a total, say how it was measured and what it includes, and treat it as a material statement that must be accurate.
The buyer and seller will usually pursue the agent. The agent may recover from the provider under its contract, depending on the terms. PI may respond to the claim against the agent, subject to the wording.
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