Piggybank News

September 25, 2014

Should you be joining a Property Redress scheme?

Most Landlords and Letting Agents will be aware that the government has made it compulsory for all Property Agents to join an authorised redress scheme by 1st October 2014.  There have been quite a few articles flying around explaining this obligation and the potential safety net it will offer to Landlords. Property Purchasers, Vendors and Tenants.  The aim is that anyone who feels they are not being treated fairly will have somewhere to go to voice their concerns, with a chance of compensation.

However, what may not have been quite so obvious is the breadth of the government’s definitions of Letting/Property Management/Estate Agent in this regard.  It’s a serious concern because those that don’t sign up risk being fined up to £5,000, via their local council trading standards office.

Essentially any person or business which accepts money in the course of their business for letting, managing or selling property is covered by this act.  So, for example, if you manage a property for a friend and take even “mates rates” fees then you are affected, there are in fact very few exclusions.  (If you would like a full list of definitions then click this link to the Property Redress Scheme website.)

There are 3 schemes currently approved – The Property Redress Scheme, the Property Ombudsman and Ombudsman Services Property.  Of these the Property Redress Scheme is perhaps the most flexible as, alongside Property/ Management/Lettings and Estate Agents, they are also open for other professionals working in the property industry including cleaners, gardeners and inventory clerks.

j0283695Piggy says “Private Landlords, Sourcing Agents and Property Managers are strongly advised to establish the status of their business in relation to this legislation and register with one of the approved schemes before the deadline of 1st October 2014 if required”.

 

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