OFFICE OF FAIR
TRADING News Release (75/08) issued by The Government News Network
on 19 June 2008
The OFT has today
given the Ombudsman for Estate Agents Company Limited (OEA)
approval for its estate agents redress scheme under the Consumer
Estate Agents and Redress Act 2007 (CEARA).
With the approval of a redress scheme, the Secretary of State for
Business Enterprise and Regulatory Reform (BERR) will now be able
to make an order under CEARA requiring all estate agents dealing
with residential property in the UK to join an approved scheme.
BERR expects this order to become law and commence on 1 October
2008, from which time estate agents will be required to join an
approved scheme.
In the meantime, the OFT is considering two other applications to
operate estate agents redress schemes and will announce decisions
on these as soon as possible. Details of these applications can be
found on the OFT website http://www.oft.gov.uk.
Once it becomes compulsory for all estate agents to join an
approved scheme, buyers and sellers of residential property will
be able to refer complaints concerning members of the scheme to an
ombudsman to be determined. The ombudsman 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
OEA's approved redress scheme will be a free service to complainants.
John Fingleton, OFT Chief Executive, said:
'The OEA scheme has successfully met all the criteria
applied by the OFT. House buyers and sellers will soon have access
to a free, easily accessible and speedy estate agents redress
scheme that will ensure independence, fairness and transparency.
We are also actively considering other applications to operate
similar redress schemes.'
NOTES
1. The Consumer Estate Agents and Redress Act 2007 (CEARA) amends
the Estate Agents Act (EAA) 1979 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 scheme(s)
need to be approved by the OFT. The CEARA is available at http://www.statutelaw.gov.uk/.
2. The OFT published criteria for approval of a redress scheme in
October 2007. An amendment to one of the criterion was issued in
March 2008.
3. Details of the current applications for OFT approval are on
the OFT's website: http://www.oft.gov.uk/advice_and_resources/resource_base/EARS/
4. The OEA was established to run the voluntary Ombudsman for
Estate Agents Scheme and has since 1 August 2007 operated a Home
Information Pack redress scheme. We are informed that OEA members
represent around 85 per cent of estate agency offices in the UK.
The OEA also operates a Residential Estate Agency Code of Practice
approved by OFT under the Consumer Codes Approval Scheme. For
further details of the OEA, visit http://www.oea.co.uk/.
http://www.oft.gov.uk
PUBLIC enquiries: 0845 7224499 enquiries@oft.gov.uk
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