A compliance warning to online agents

I read with some interest Ian Springett's view on internet only agents. Not sure I agree with his comments, but it did prompt me to write this piece, because putting aside Ian's views, these agents perhaps have bigger things to worry about.

The wide ranging legal obligations traditional agents must comply with, also apply to online agents. Many of you, wrongly, have the opinion that you do not have to comply with the obligations placed on the traditional high-street agent.

Whether it is the Estate Agents Act, the Consumer Protection from Unfair Trading Regulations or any of the other half dozen or so pieces of legislation that apply, compliance is required. In addition, you must be a member of redress/ombudsman scheme and be registered with the ICO and HMRC for money laundering purposes.

Of course, a few internet advertising only' sites do not need comply, but these are few and far between, because most internet only' agency sites offer more than a simple advertising opportunity.

You will be exempt if you take property information from the home owner wishing to sell their property and put that information on a website to advertise it, AND you provide any buyer with the opportunity to contact the seller directly so that they handle viewing and negotiations between themselves. The AND here is the most important part, because if you or your site does more than simply advertise the property, you are an estate agent under the definition set out in the Estate Agents Act and you must comply with it all.

A quick scan of a few internet only' sites revealed breaches almost immediately. The Estate Agents Act obligations were not being met and consumers' cancellation rights were being flouted.

Remember, breaches of these two alone can mean clients are entitled to their money back. Breaches of a consumer's cancellation rights means they have a legal right to cancel the contract and be provided with a full refund for up to 54 weeks from the date of the start of the instruction or contract, regardless of whether any sale takes place.

*Founder of Compliance Matters, David Beaumont is a Trading Standards compliance consultant working with estate and letting agents all over the UK