‘Do I really have to join one of the redress schemes?’
The answer is usually 'yes' but some agents still believe there are grey areas, says Trading Standards
Confusion among sales and letting agents about who has to register with one of the three redress schemes has prompted the National Trading Standards Estate Agency Team (NTSEAT) to issue new advice.
Team leader James Munro says that although it is already a legal requirement for anyone engaged in residential estate agency to be a member of an approved scheme, he says there have been requests to “clarify” what this means.
It might seem an easy enough definition to grasp, but the subtleties of the sector have led several agents to wonder if they really have to join one of the schemes, which are Ombudsman Services: Property, the Property Redress Scheme and The Property Ombudsman.
James says the NTSEAT now wants to make it clear that the definition covers any agency that ‘engages in estate agency work’ and ‘deals in residential property’ and that by residential he means ‘land that consists of or includes part of a building’.
The list of questions that agents have asked include whether they have to join if they only sell off-plan property (they do) and if individual members of staff have to join a redress scheme (they don’t, only the company they work for has to).
Also, agents wanted to know if they have to join a redress scheme if they sell commercial premises which occasionally include residential elements (they do) and whether letting agents who then go into sales have to join a second scheme (they don’t).
Lastly – and little known – is that agents selling overseas property but who are based in the UK must join one of the redress schemes.
To read the guidance in full visit the NTSEAT website.










