Office of Fair Trading
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OFT approves Estate Agents redress scheme
The OFT has today approved the Ombudsman Service Limited's application to operate an estate agents redress scheme, under the Consumer Estate Agents and Redress Act 2007. The company will operate the Surveyors Ombudsman Service (SOS) as an approved estate agents redress scheme, and is the second to receive OFT approval ahead of 1 October 2008, when it will become compulsory for all estate agents dealing with residential property in the UK to join such a scheme.
Buyers and sellers of residential property will, from October, be able to refer complaints concerning members of the scheme to an ombudsman, which 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 SOS approved redress scheme will be a free service to complainants.
Jonathan May, OFT Executive Director, said:
'The SOS scheme has successfully met the criteria applied by the OFT. Buying or selling a home is a significant and complex transaction so it is good news that, from October, there will be access to free, easily accessible and speedy redress schemes that will ensure fairness and transparency.'
NOTES
1. 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 Statue Law website http://www.statutelaw.gov.uk.
2. The Secretary of State made a redress scheme Order on 1 July 2008. It will come in to force on 1 October 2008. Details are available on http://www.statutelaw.gov.uk.
3. The OFT published criteria for approval of a redress scheme in October 2007. An amendment to one of the criteria was issued in March 2008. The OFT is currently considering one other application to operate an estate agents redress scheme and will announce a decision on it as soon as possible. Details of the application can be found at the Estate Agents Redress Schemes section of the OFT website. http://www.oft.gov.uk.
4. The Surveyors Ombudsman Service was established to deal with complaints made against Chartered Surveyors which are members of the Royal Institution of Chartered Surveyors (RICS). Its approved redress scheme will be open to all estate agents who are subject to the requirement to join a scheme. Further details can be found on the SOS website http://www.surveyors-ombudsman.org.uk.
5. There are now two approved estate agents redress schemes. In June 2008 the OFT approved the Ombudsman for Estate Agents Company Limited's estate agent redress scheme, see PN 75/08.
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