Newsroom

OFT makes Warning Order against Essex estate agent

130/07    12 September 2007

The OFT has made a Warning Order against Andrew Farquharson for matters relating to his former employment at Bairstow Eves, 68 High Street in Wanstead.

The Order is based on Mr Farquharson's two failures to pass on in writing offers made on a property to the vendor as required by the Estate Agents (Undesirable Practices) (No.2) Order 1991. It is also based on his committing of a serious misrepresentation by signing a certificate of value for the Court of Protection when not qualified to do so. He also breached his contractual duty to his former employer by failing to comply with the company's procedures for a sale to a developer, money laundering regulations and handling of a complaint by an interested party.

Ray Hall, OFT Director of Markets and Projects, said:

'This case shows how the OFT will take steps to protect consumers and take appropriate action to ensure that estate agents meet their legal obligations.'
 
NOTES

1. The OFT can make a Warning Order if it is satisfied that a person in the course of estate agency has failed to comply with a statutory obligation or has engaged in a practice which has been declared undesirable by the Secretary of State. The OFT can bar from estate agency work a person who fails to comply with the Order and/or continues these undesirable practices in future.

2. Before a Warning 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, subsequent appeal can be made to the Department for Business, Enterprise & Regulatory Reform.

3. An adjudicator appointed by the OFT determined that Mr Farquharson had engaged in conduct which constituted a practice which had been declared undesirable by the Estate Agents (Undesirable Practices) (No.2) Order 1991. A Warning Order was made on 24 August 2007. The Order does not come into operation until the period in which any appeal under section 7(1) of the Act has expired. Mr Farquharson has until 21 September 2007 to lodge such an appeal.

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. The OFT will then consider the request in the light of current circumstances.

5. The Estate Agents Act 1979 and related subordinate legislation 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 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.

6. Under the Estate Agents (Undesirable Practices) (No.2) Order 1991 (paragraph 2 of Schedule 3), an estate agent is required to pass on to his client promptly and in writing accurate details (other than those his client has indicated in writing that he does not wish to receive) of any offer he has received from a prospective purchaser in respect of an interest in the land.

Back to:2007