18 Aug 2008 11:08 AM
Hampstead estate agents banned

OFFICE OF FAIR TRADING News Release (97/08) issued by The Government News Network on 18 August 2008

The OFT has made prohibition orders against two Hampstead estate agents banning them both from estate agency work.

Malcolm Green, a director of Greenfields Estate Agents and Gem Shevket, an employee of the same company, have been convicted of offences involving fraud or other dishonesty as referred to in the Estate Agents Act 1979. As a result the OFT consider them to be unfit to carry on doing estate agency work.

Mike Haley, OFT Director of Consumer Protection, said:

'This case again demonstrates that the OFT will take a hard line against estate agents who are unsuitable to continue working in the industry owing to their dishonesty.'

NOTES

1. Under section 3 of the Estate Agents Act 1979, the OFT can take action with a view to banning from estate agency work a person (and for the purposes of the Estate Agents Act 1979 this can also be a company or a partnership) who has been convicted of certain specified offences such as fraud, or other dishonesty or violence, or who has committed racial or sexual discrimination in the course of estate agency work, or who has failed to comply with the requirements placed on estate agents by the Estate Agents Act 1979 and its associated regulations ('the Act'), or who has engaged in specified undesirable practices, if an adjudicator finds that the person in question is unfit to act as an agent.

2. Before a prohibition order is issued, the person concerned has the right to make representations to the OFT as to why the order should not be made. If these representations are unsuccessful, an appeal against the determination to make an order can be made to the Tribunals Service, an executive agency of the Ministry of Justice.

3. Adjudicators issue and determine prohibition and warning notices under the Act. They do so on behalf of the OFT, but make individual and independent decisions based upon the contentions in a notice, the evidence attached to a notice and the representations of those to whom a notice is addressed. Representations may be made in writing and at an oral hearing.

4. An adjudicator determined that Mr Green and Mr Shevket were unfit to practice as estate agents. A prohibition order was made in respect of Mr Shevket on 26 March 2008. The order came into force on 23 April 2008. A prohibition order was made in respect of Mr Green on 30 July 2008. The order against Mr Green does not come into operation until the period in which any appeal could be made under section 7(1) of the Act has expired. Mr Green has until 27 August 2008 to lodge such an appeal. (Mr Shevket did not exercise his right of appeal).

5. After an order has been made, the person affected can at any time, and on payment of a fee, currently £2,500, apply to the OFT for the order to be varied or revoked.

6. The Act covers anyone who, in the course of business, is engaged in 'estate agency work'. This means introducing to someone else a person who wishes to buy, sell or lease land or property, and/or being involved in negotiating the subsequent deal. The work must be in the course of business, whether as employer or employee, and as a result of instructions from a client. The land or property may be commercial, industrial, agricultural or residential.

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