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Hertfordshire letting agent banned from estate agency work

114/06    17 July 2006

The OFT has banned Richard McCarthy, owner of former Hertfordshire letting and managing agents McCarthy Woods Ltd from engaging in estate agency work.
 
A prohibition order was issued by the OFT following Mr McCarthy’s conviction of fraudulent trading for failing to pass on rent that he had collected on behalf of landlords.

The OFT can prevent a person or company from engaging in estate agency work if they have been convicted of offences involving fraud or other dishonesty or violence.

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

‘Whether buying or letting a property, when consumers give money to an agent, it is essential that they can rely on the trustworthiness of that agent. If an agent engages in any form of fraudulent conduct, the OFT will not hesitate to take action to prevent them from working as an estate agent.’ 

McCarthy Woods Ltd’s trading address was 110 Leavesden Road, Watford, Hertfordshire.

NOTES

1. Before a Prohibition Order is issued, the person concerned has the right to make representations to the OFT as to why the Order should not be made. If these representations are unsuccessful, the person concerned may appeal to the Secretary of State for Trade and Industry.

2. Adjudicators issue and determine Prohibition and Warning Notices under the Act. They do so on behalf of the OFT, but make individual and independent decisions based upon the contentions in a Notice, the evidence attached to a Notice and the representations of those to whom a Notice is addressed. Representations may be made in writing and at an oral hearing.

3. An adjudicator determined that Mr McCarthy was unfit to carry on estate agency work. A Prohibition Order was made in respect of Mr McCarthy on 26 April 2006. The Order did not come into operation until the deadline for an appeal under section 7(1) of the Act had expired. Mr McCarthy had until 24 May 2006 to lodge such an appeal. Mr McCarthy was sentenced to 21 months imprisonment at St Albans Crown Court on 29 July 2005.

4. After an Order has been made, the person affected can at any time, and on payment of a fee (currently £2,500) apply to the OFT for the Order to be varied or revoked.

5. The Estate Agents Act 1979 covers anyone who, in the course of business, is engaged in 'estate agency work'. This means introducing to someone else a person who wishes to buy, sell or lease land or property, and/or being involved in negotiating the subsequent deal. The work must be in the course of business, whether as employer or employee, and as a result of instructions from a client. The land or property may be commercial, industrial, agricultural or residential. The Act does not cover arranging rentals or property management but it does allow the OFT to ban any person who it considers unfit to do estate agency work.

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