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Belfast estate agent gives undertakings to the OFT

202/05    27 October 2005

A Downpatrick estate agent has been required to change his conduct and be more transparent in his dealings with consumers following action by the OFT and the Trading Standards Service of the Department of Enterprise Trade and Investment Trading Standards Service (DETI).

Hugh Press, the principal of Alexander, Reid & Frazer Estate Agents, has given an undertaking to the OFT that he will comply with the provisions of the Estate Agents Act 1979 and related subordinate legislation, including The Estate Agents (Provision of Information) Regulations 1991 and the Estate Agents (Undesirable Practices) Order 1991. An investigation by DETI into a consumer complaint in May 2005 revealed that Mr Press had breached provisions of the above legislation but he has given a commitment to the OFT that in future he will:

• provide all prospective clients with written details of his terms and conditions before they are committed to any liability towards him
• pass on all offers promptly and in writing.

Mr Press has fully co-operated with the OFT.

Christine Wade, OFT Director of Consumer Regulation and Enforcement said:

'Estate Agents must be transparent in their dealings with consumers and provide them with all the information they require to make informed decisions. The OFT will take appropriate action to ensure that estate agents fulfill their legal obligations and the interests of consumers are protected.'

If an agent breaches undertakings given to the OFT, the OFT may seek an Enforcement Order from the court. If the agent then breaches the Enforcement Order, this would amount to contempt and could be punished by a fine and/or imprisonment.

The OFT has obtained undertakings from three estate agents and one estate agency business and has decided to ban seven estate agents and warn three estate agents and two estate agency businesses so far in 2005. 

NOTES

1. The OFT obtained an undertaking under Part 8 of the Enterprise Act 2002 which came into force on 20 June 2003.

2. The Enterprise Act improves consumer protection by giving enforcers strengthened powers to obtain court orders or undertakings against traders that breach a range of consumer legislation: controlling activities such as misleading advertising, sale of goods and services, estate agency, unfair terms in consumer contracts, doorstep selling, distance selling, package travel and consumer credit.

3. The Estate Agents Act 1979 and related subordinate legislation covers anyone who, in the course of business, is engaged in 'estate agency work'.

4. Under section 18 of the Estate Agents Act, an estate agent must, before entering into any contract for estate agency services, give his client particulars of the circumstances in which the client will become liable to pay remuneration, and particulars of the amount of the agent's remuneration for carrying out estate agency work; or if this is not possible, details of the way in which it will be calculated.

5. The Estate Agents (Provision of Information) Regulations 1991 clarify and extend these obligations and explain certain terms. Under the Estate Agents (Undesirable Practices)(No.2) Order 1991 (paragraph 2 of Schedule 3), an estate agent must forward to his client promptly and in writing accurate details (other than those of a description which the client has indicated in writing he does not wish to receive) of any offer the estate agent has received from a prospective purchaser in respect of an interest in the land.

6. Consumers choosing an estate agent can now look for the OFT approved logo. In September 2005, the Ombudsman for Estate Agents Company Limited (OEA) secured OFT approval for its consumer code of practice. The OFT only approves codes that are effective in safeguarding and promoting consumer interests beyond the basic requirements of the law.  Members of the OEA can now use the OFT approved code logo to display their commitment to high quality customer service standards.

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