The Property Ombudsman
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Features
Honesty and evidence is always the best policy
Honesty and evidence is always the best policy” says Jane Erskine, Casework Director, The Property Ombudsman.
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Features
Multi-agency fees and fairness
This case study concerns a dispute referred to The Property Ombudsman (TPO) from a seller complainant concerned about the fee that the agent (Agent 1) charged upon the sale of the property. The complainant explained that Agent 1 charged a multi-agency fee, as the property had been marketed by another agent (Agent 2). The complainant stated that Agent 2 was not instructed market the property for sale, and had confirmed that any marketing carried out by them was in error. The complainant also alleged that Agent 1 gave no prior indication of their intention to charge a multi-agency fee and did not advise that Agent 2 also appeared to be marketing the property. Agent 1’s response was that the property was marketed by Agent 2 throughout the period in which they were instructed, and that, as per the terms of their Agency Agreement, a multi-agency rate commission fee was payable. The facts I began by explaining that no complaint had been brought against Agent 2, and therefore I was unable to consider their actions. For clarity, I understood that Agent 2 had been informally instructed in the sale of the property by the complainant’s parents in 2012. The parents at…
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Associations & Bodies
TPO announces new Property Ombudsman
Katrine Sporle CBE (left) will take up the role of Ombudsman at The Property Ombudsman, it has been announced. Sporle will start her new job on 1st November 2015, taking over from her predecessor Christopher Hamer (right), whose nine-year term comes to an end on 30th November. Previously, Sporle was Chief Executive of the Planning Inspectorate for England and Wales for eight years, which involved being responsible for all aspects of the Government Executive Agency, 1,000 members of staff and a £60million budget. She was directly answerable to Parliament and regularly reported to the Secretary of State for Communities and Local Government (CLG), and the Minister for Housing and Planning in the National Assembly for Wales. She commented, “The scope for influence on the economic, environmental and social wellbeing of the nation as a whole was enormous, and exercised through impartiality of decision making to the highest level of professional expertise.” Prior to her role at the Planning Inspectorate for England and Wales, Sporle was Chief Executive of Basingstoke and Deane Borough Council for eight years, controlling an overall budget of in the region of £58 million. As the new Property Ombudsman, Sporle’s role will be to impartially review complaints…
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Latest property news
TPO expels another agent
West London estate agents Bruten & Co Limited has been expelled from membership of The Property Ombudsman (TPO) for a minimum of two years after failing to comply with parts of the Code of Practice for Residential Letting Agents and failing to pay an Ombudsman’s award made of £768 to complainants. The decision to expel Bruten & Co, based in Notting Hill, from TPO membership came about following a complaint from prospective tenants who raised concerns about several elements of the firm’s level of service whilst applying to rent a home. The complaint had two parts. The first part, about the attempt to arrange a tenancy, consisted of three elements, two of which were upheld by the Ombudsman, Christopher Hamer. The second part, about handling of the prospective tenants’ complaint was also upheld. The tenancy agreement was sent to the prospective tenants with a significant extra term which was not in the offer form they had signed. But Bruten & Co refused either to amend the tenancy agreement or return the deposit and administration fees. The company also failed to clarify for the complainants how the utility bills for the property would be calculated. The agent declined to deal with…
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Latest property news
Agent expelled by TPO
After failing to comply with several elements of The Property Ombudsman’s (TPO) Code of Practice for residential letting agents and subsequently failing to pay an Ombudsman’s award made of £1,600 to the complainants, Allen & Crane Estates, a sales and lettings agent based in Burnham near Slough, has been excluded from membership of TPO for a minimum of two years. The decision to expel the firm came about following a complaint from landlords who raised a number of concerns connected with the performance of the agent when they let a property through the company. Various complaints were made by the landlord, all of which were upheld to varying degrees by the Ombudsman, Christopher Hamer. This included the agent allowing tenants to take occupation of the property without the landlords’ knowledge and without evidence of reference checks having been carried out. Additionally, there was also a delay in providing the landlords with a copy of the tenancy agreement. Other issues included the agent’s failure to obtain any security deposit or a valid guarantor agreement, failure to provide regular and clear statements of account following rent being paid in irregular instalments and finally their inability to demonstrate that they had inspected the…
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Features
“Reckless referencing can have very serious consequences for agents,”
"Reckless referencing can have very serious consequences for agents,” says Christopher Hamer, The Property Ombudsman.
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Associations & Bodies
Property Ombudsman Christopher Hamer to step down
The Property Ombudsman (TPO), Christopher Hamer, is to step down later this year, it has been announced. He will be leaving office on 30th November 2015 after completing the maximum nine years that he is allowed to serve as Ombudsman. Mr Hamer (left) said, “I have been in the post for many years, have enjoyed it immensely and found working with all the various stakeholder organisations and individuals most rewarding. I don’t have any particular plans at this stage post 30th November but I do hope that in some way I will be able to contribute to developments in the property sector. I hope the next Property Ombudsman finds it as enjoyable and rewarding as I did and I would like to wish them the best of luck.” The independent TPO Council together with the TPO Board Chairman, Bill McClintock (right), have already begun the search to fill the position. Mr McClintock said, “Christopher has been a highly effective Ombudman during a time when the scheme has expanded enormously. Both those working with him and in the industry will miss him greatly.” Meanwhile, Malcolm Cannon, the Chief Executive of lettings agency at Braemore, has been appointed to the board of…
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Regulation & Law
42% rise in complaints to The Property Ombudsman
There has been a significant increase in complaints made to The Property Ombudsman (TPO), partly due to a growing trend in the consumer world to challenge when a product or service does not offer satisfaction, and partly due to a sharp rise in the number of agents signed up to the TPO. Six months on from the introduction of new legislation, making it a legal requirement for lettings agents and property managers in England to join a Government approved redress scheme, the report shows that the number of letting offices now signed up to TPO scheme has reached a record level of 12,915, up 28 per cent year-on-year. This brings the total number of sales and lettings offices offering TPO’s free, independent dispute resolution service to 26,735. Commenting on the report, Christopher Hamer (left), The Property Ombudsman, said, “In 2014 we saw continued and significant growth in the Private Rented Sector. With an estimated 1.6 million private landlords, many of whom have limited experience and understanding of their responsibilities, and large numbers of consumers seeking tenancies, the role of letting and managing agents in providing quality customer service based on a comprehensive knowledge of relevant legislation, is more important now…
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The devil is in the detail
The Complainant (the potential buyer) was initially shown around the property (a flat) by the Seller following the Agent failing to attend the appointment. Shortly after, she made an offer via the Agent which was acceptable to the Seller and the sale was agreed. Two days later the Complainant attended an appointment with her mortgage advisor to assess her finances where the subject matter of potential ground rent, service and maintenance charges was raised. The Complainant showed the mortgage advisor the sales particulars and then telephoned the Agent to confirm that the particulars where correct insofar as they stated no ongoing ground rent, service or maintenance charges were payable. The Agent confirmed that there was no requirement to pay the said costs at this time and the Complainant proceeded with her mortgage application. Two months later, towards the end of the transaction, the housing association who managed the building in which the property was situated, wrote to the Complainant stating that as a potential lessee, she would be responsible for paying the service charges that were due (an estimated annual charge of £1,000). Checking with her solicitor who had just received the lease agreement, it became apparent that the housing…
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Regulation & Law
Not happy, not paying!
Chris Hamer (left), The Property Ombudsman, discusses agents, commission fees and legal action. A feature of many sales complaints referred to me is the seller’s belief that the commission fee should be waived, in whole or in part, due to the perceived shortcomings in the agent’s service. Agents’ fees can be a significant part of the costs in moving house, so I understand why a seller may reason that the level of service received does not reflect the level of fee charged. It’s not unusual that a seller may apportion what they consider to be a fair amount and paid that, expecting the agent to accept it; that rarely happens. When considering a commission fee complaint, I always explain that it is not my role to re-write the agreed contract terms to reflect the complainant’s perception of the service. If the contract terms are unambiguous and the fee clearly stated (as per section 3, TPO Code of Practice), I will usually uphold the agent’s contractual entitlement to the stated and agreed commission fee. Should I uphold a service complaint and make an award, it will reflect the actual financial loss and/or my assessment of the aggravation, distress and inconvenience caused…
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