OFFICE OF FAIR
TRADING News Release (96/08) issued by The Government News Network
on 15 August 2008
The OFT has today
approved the Ombudsman Service Limited's application to
operate an estate agents redress scheme, under the Consumer Estate
Agents and Redress Act 2007. The company will operate the
Surveyors Ombudsman Service (SOS) as an approved estate agents
redress scheme, and is the second to receive OFT approval ahead of
1 October 2008, when it will become compulsory for all estate
agents dealing with residential property in the UK to join such a scheme.
Buyers and sellers of residential property will, from October, be
able to refer complaints concerning members of the scheme to an
ombudsman, which will have the power to make a range of awards,
including requiring a member to pay compensation. The
ombudsman's decision is binding on the estate agent, although
a complainant can choose to reject the decision and pursue their
complaint through the courts. The SOS approved redress scheme will
be a free service to complainants.
Jonathan May, OFT Executive Director, said:
'The SOS scheme has successfully met the criteria applied by
the OFT. Buying or selling a home is a significant and complex
transaction so it is good news that, from October, there will be
access to free, easily accessible and speedy redress schemes that
will ensure fairness and transparency.'
NOTES
1. The Consumer Estate Agents and Redress Act 2007 (CEARA)
amended the Estate Agents Act 1979 (EAA) to allow the Secretary of
State to require (by means of a redress scheme Order) those
engaged in estate agency work in respect of residential property
to be members of an approved redress scheme ('estate agency
work' and 'residential property' are defined by the
EAA as amended by CEARA). Under the CEARA the redress schemes need
to be approved by the OFT. The CEARA is available on the UK Statue
Law website http://www.statutelaw.gov.uk.
2. The Secretary of State made a redress scheme Order on 1 July
2008. It will come in to force on 1 October 2008. Details are
available on http://www.statutelaw.gov.uk.
3. The OFT published criteria for approval of a redress scheme in
October 2007. An amendment to one of the criteria was issued in
March 2008. The OFT is currently considering one other application
to operate an estate agents redress scheme and will announce a
decision on it as soon as possible. Details of the application can
be found at the Estate Agents Redress Schemes section of the OFT
website. http://www.oft.gov.uk.
4. The Surveyors Ombudsman Service was established to deal with
complaints made against Chartered Surveyors which are members of
the Royal Institution of Chartered Surveyors (RICS). Its approved
redress scheme will be open to all estate agents who are subject
to the requirement to join a scheme. Further details can be found
on the SOS website http://www.surveyors-ombudsman.org.uk.
5. There are now two approved estate agents redress schemes. In
June 2008 the OFT approved the Ombudsman for Estate Agents Company
Limited's estate agent redress scheme, see PN 75/08.
http://www.oft.gov.uk
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