Office of Fair Trading
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OFT gives approval to an estate agents redress scheme
The OFT has today given the Ombudsman for Estate Agents Company Limited (OEA) approval for its estate agents redress scheme under the Consumer Estate Agents and Redress Act 2007 (CEARA).
With the approval of a redress scheme, the Secretary of State for Business Enterprise and Regulatory Reform (BERR) will now be able to make an order under CEARA requiring all estate agents dealing with residential property in the UK to join an approved scheme. BERR expects this order to become law and commence on 1 October 2008, from which time estate agents will be required to join an approved scheme.
In the meantime, the OFT is considering two other applications to operate estate agents redress schemes and will announce decisions on these as soon as possible. Details of these applications can be found on the OFT website http://www.oft.gov.uk.
Once it becomes compulsory for all estate agents to join an approved scheme, buyers and sellers of residential property will be able to refer complaints concerning members of the scheme to an ombudsman to be determined. The ombudsman will have the power to make a range of awards, including requiring a member to pay compensation. The ombudsman's decision is binding on the estate agent, although a complainant can choose to reject the decision and pursue their complaint through the courts. The OEA's approved redress scheme will be a free service to complainants.
John Fingleton, OFT Chief Executive, said:
'The OEA scheme has successfully met all the criteria applied by the OFT. House buyers and sellers will soon have access to a free, easily accessible and speedy estate agents redress scheme that will ensure independence, fairness and transparency. We are also actively considering other applications to operate similar redress schemes.'
NOTES
1. The Consumer Estate Agents and Redress Act 2007 (CEARA) amends the Estate Agents Act (EAA) 1979 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 scheme(s) need to be approved by the OFT. The CEARA is available at http://www.statutelaw.gov.uk/.
2. The OFT published criteria for approval of a redress scheme in October 2007. An amendment to one of the criterion was issued in March 2008.
3. Details of the current applications for OFT approval are on the OFT's website: http://www.oft.gov.uk/advice_and_resources/resource_base/EARS/
4. The OEA was established to run the voluntary Ombudsman for Estate Agents Scheme and has since 1 August 2007 operated a Home Information Pack redress scheme. We are informed that OEA members represent around 85 per cent of estate agency offices in the UK. The OEA also operates a Residential Estate Agency Code of Practice approved by OFT under the Consumer Codes Approval Scheme. For further details of the OEA, visit http://www.oea.co.uk/.
PUBLIC enquiries: 0845 7224499 enquiries@oft.gov.uk
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