New requirements introduced by the Consumers, Estate Agents and Redress Act 2007 mean that all persons who engage in estate agency work in relation to residential properties in the UK must join a redress scheme with effect from 1 October 2008.
Actual and potential buyers and sellers of residential property with complaints about estate agency work will then be able to use a free, easily accessible, fair estate agents redress scheme, which will have the power to make a range of awards, including requiring a member to pay compensation.
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The OFT has to date approved two schemes, operated by the Ombudsman for Estate Agents Company Limited and the Surveyors Ombudsman Service. Details of these are available on the OFT's website. Residential estate agents who are not already a member of an approved scheme should act now to ensure that they are members of such a scheme from 1 October.
If an estate agent is not a member of a scheme, Trading Standard Officers have the power to impose a penalty charge notice for failure to comply with the new requirement. The OFT may consider enforcement action which could include making a prohibition order banning the agent from practicing as an estate agent in the future.
Mike Haley, OFT Director of Consumer Protection, said: "It is important that agents are aware of their obligations and the possible consequences if they fail to comply from 1 October 2008.
"Agents who fall short could be fined and risk a ban from estate agency work in future."
(GK/JM)
