Ombudsman warns on clarity of new conduct rules for estate agents

Wednesday 21st September 2011

The Property Ombudsman has cast doubts over the clarity of the Consumer Protection Regulations, on which the OFT’s new guidance to estate agents focuses.

As the OFT consultation on the guidance gets under way, as reported by EAT yesterday, Christopher Hamer said the Regulations could be ambiguous.

He said: “Whilst I have not yet had the opportunity to fully consider the OFT consultation paper, anything that helps clarify new responsibilities and ensures that agents operate within the law must be considered as positive.

“The consequences of good guidance for agents are that buyers, sellers, landlords and tenants will be better served, thereby avoiding disputes.

“I am keen to see the results of the Department for Business Innovation and Skills consultation on the potential repeal of the Property Misdescriptions Act (PMA) 1991 – that repeal being a possibility because BIS has suggested that the provisions of the Consumer Protection Regulations cover the same aspects of the PMA.

“Although the guidance that is now being consulted on is obviously helpful, it remains that the PMA is very specific in its requirements, whilst the CPRs, I believe, remain open to differing interpretations.”

Bill McClintock, chairman of the operating company for The Property Ombudsman scheme, will be taking part in the latest OFT consultation.


He said: “I am sure we have a contribution to make, and if the process helps focus estate agents on better business practice, then it has to be good for both the industry and consumers.

“If the consultation identifies problems that can be solved through better laws, or better application of existing laws, then such moves should be made.”

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