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Redress for Complaints Against Estate Agents

It is the Government's intention that from April 2008, estate agents in the UK should be required to belong to a redress scheme covering all estate agency complaints related to the buying and selling of residential property.  The Consumers, Estate Agents and Redress (CEAR) Act, which obtained Royal Assent on 19 July 2007, makes provision for this.

OFT are currently working towards the implementation of this measure, and are now inviting applications from scheme operators for approval of their redress schemes to deal with complaints about estate agency work in relation to residential property. Applicants aiming to gain approval of a redress scheme before the Secretary of State makes the order requiring estate agents to join, should ensure OFT receive their application by 9 November 2007. Further information including approval criteria and application form can be found on this OFT web page. Or by calling 020 7211 8479.

Once the CEAR Act comes into force and the redress provisions are implemented, the Housing Act provisions relating to redress schemes will be repealed as HIP-related complaints will be considered by schemes approved by the Office of Fair Trading under the CEAR Act.

Complaints related to Home Information Packs (HIPs)

HIPs were introduced in England and Wales on 1 August 2007 for homes with four or more bedrooms, and from 14 December they will apply to all homes put on the market. Sellers of properties will need to have commissioned a HIP before putting their property on the market. Any estate agent in England and Wales marketing a property requiring a HIP must belong to an approved redress scheme. This means consumers have access to redress for HIP-related complaints against estate agents

Redress schemes approved to date under the Housing Act 2004, for the purpose of dealing with HIP-related complaints are:

- Ombudsman for Estate Agents’ HIPs redress scheme

- Royal Institution of Chartered Surveyors’ Surveyor Ombudsman Scheme

- IDRS Ltd Property Adjudication for Consumers Scheme (PACS) (see Minister's recent approval letter on the right). Further information about the scheme can be found by clicking here.