The Estate Agents (Redress Scheme) Order 2008, which will take effect across the UK from 1 October 2008, will allow buyers and sellers of residential property to refer complaints about estate agents to an ombudsman, free of charge.
The ombudsman will have the power to take a range of actions, including requiring the estate agent to pay compensation. The ombudsman's decision will be binding on the estate agent, however complainants will also have the right to reject the decision, and pursue their complaint through the courts.
Estate agents who fail to join an approved scheme by 1 October 2008 will be subject to a £1,000 penalty charge, and those who refuse to join a scheme could ultimately be banned by the Office of Fair Trading (OFT) from carrying out estate agency work.
In Northern Ireland, the legislation will be enforced by the Trading Standards Service (TSS) of the Department of Enterprise, Trade and Investment.
David Livingstone, Head of Trading Standards Service, said: “Trading Standards Service has written to all estate agents in Northern Ireland to notify them about the new law, and to advise on what action is required.
“While we hope that it will not become necessary to impose penalty charges on any estate agents in Northern Ireland for non-compliance, nonetheless we are duty bound to enforce this new law. If any agents fail to join one of the approved schemes, we will have no option but to take enforcement action.”
The Office of Fair Trading (OFT) has already approved applications from the Ombudsman for Estate Agents (OEA) and the Surveyors Ombudsman Scheme (SOS) to run redress schemes, and these schemes are up and running. The OFT is currently considering one further application. Further details of the approved schemes are available by contacting the OFT on 08457 22 44 99 or online at www.oft.gov.uk.
If consumers have a complaint about an estate agent, or those in business would like further information about the legislation, they are asked to contact Consumerline on 0845 600 6262/ 028 9025 3900 or log on to www.consumerline.org.
Notes to Editors:
- The Consumer, Estate Agents and Redress Act 2007 (CEARA) amended the Estate Agents Act 1979 (EAA) to allow the Secretary of State to require (by means of a redress scheme Order) those engaged in estate agency work in respect of residential property to be members of an approved redress scheme ('estate agency work' and 'residential property' are defined by the EAA as amended by CEARA). Under the CEARA the redress schemes need to be approved by the OFT. The CEARA is available on the UK Statute Law Database at www.statutelaw.gov.uk.
- The Estate Agents (Redress Scheme) Order 2008 will come into force on 1st October 2008.
- The Estate Agents (Redress Scheme) (Penalty Charge) Regulations 2008 will come into force on 1st October 2008.
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