Righting the wrongs

When a vendor was recently advised by the estate agent to reduce his asking price and complete additional works on the property, it seemed like sound advice to speed up the sale of his property, especially as the house went under offer just a few days later. But when it materialised that the buyer was actually a member of staff at the estate agency, the seller issued a complaint to the Ombudsman Services on the grounds that the company had failed to disclose this conflict of interest, which may have influenced the negotiation. “In the small number of cases where people have complaints these should be addressed quickly and effectively.” Brandon Lewis, Minsiter for Housing & Planning The estate agent maintained that it sold the property to the highest bidder. It also stated that the complainant was aware of the conflict in interest. However, upon investigation, the Ombudsman Services could find no evidence to show that the conflict of interest was disclosed to the complainant (the vendor) in writing, which is a legal requirement, in accordance with the Estate Agents Act. Following its failure to follow the rules, Ombudsman Services ordered the company to reduce their commission for selling the…

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