Regulation can ensure that consumers don’t get taken advantage of. And businesses don’t compete in an unfair playing field.
Most major industries throughout the UK are subject to regulation – but does this apply to estate agents, too?
Read on to find out.
Finding the right estate agent
Finding an estate agent is relatively easy.
Most high streets in the UK have more than one, and there are also increasing numbers of online estate agencies.
In this competitive field, some estate agents resort to tactics that harm consumers to win more market share.
For example, some estate agents lie about offers. It wins them business because sellers believe them.
Later on, the offer is inevitably reduced. The result is that the seller wasted time, but the estate agent still got their fees.
Other estate agents might get sellers to sign bad contracts.
Issues like these mean regulation is essential for a fair and transparent market.
Are estate agents regulated?
Yes. The Estate Agents Act 1979 outlines the rules all estate agents in the United Kingdom must adhere to.
You can get a copy of this from the UK government website.
Consumers, Estate Agents and Redress Act 2007
The Consumers, Estate Agents and Redress Act 2007 makes it compulsory for estate agents to belong to an approved redress scheme.
It deals with complaints made by customers.
The most well-known in the UK is The Property Ombudsman.
HMRC supervises estate agency businesses for anti-money laundering regulations. Estate agency companies usually need to register with HMRC.
Who regulates estate agents?
The National Trading Standards Estate and Letting Agency Team NTSELAT upholds the Estate Agents Act 1979 standards. The role of this organisation includes:
- Overseeing all estate agent legislation
- Sending warnings to organisations that fail to comply
- Approving and overseeing the UK’s redress schemes
- Giving general guidance to both consumers and businesses in the estate agency sector.
You can use their website to enquire about trading standards, get business advice, or search for estate and letting agents.
Are estate agents required to be licensed and qualified?
No, being licensed or qualified as an estate agent in the UK is not a legal rule. You can practice without any qualifications.
The NTSELAT ensures that all estate agencies follow the law. If you fail, you’ll face discipline and potentially be shut down.
Many estate agencies choose to join certain independent bodies. Examples include:
- The Royal Institution of Chartered Surveyors
- The National Association of Estate Agents.
Are the rules for estate agents different in Wales, Scotland and Northern Ireland?
For the most part, the laws are the same in all four countries of the United Kingdom.
The same organisation upholds the standards. And the same parliament passes the laws.
There are a few country-by-country differences, though, that were introduced by local government organisations.
In Wales, you must be part of a money protection scheme before you can get an agent license.
In Northern Ireland, estate agents usually insist you sign a ‘sole agency’ contract. This isn’t your only option in other parts of the UK.
Property law is also different in Scotland. Solicitors play a more significant role in a house transaction. And the tax rates are sometimes different, too.
How do I find out if an estate agent is regulated?
The NTSELAT has a property agent checker that you can use.
This is a database of all estate agencies registered with a redress scheme.
If your estate agent belongs to one, as they should be, they’ll appear here. If they don’t belong to one, they won’t.
You should ask your estate agent what professional bodies they belong to. This includes a redress scheme.
Get their response in writing and refuse to work with them unless you answer the question. Double-check the relevant organisations’ databases to ensure they’re in there.
If your estate agent lies to you, you should report them. You could also speak to a solicitor about taking personal action.
Most estate agencies display their certifications on their website, including industry bodies they’re part of.
If your estate agent is evasive, it’s a sign that they might not follow the correct procedures.
How to find a trustworthy estate agent
A trustworthy estate agent should be part of a redress scheme. The two most common examples are:
- The Property Ombudsman
- The Property Redress Scheme.
Your estate agency should also belong to the Royal Institute of Chartered Surveyors. They should also be part of the National Association of Estate Agents.
There shouldn’t be any hidden fees in your contract. Look this over with a solicitor to ensure you aren’t misled.
Check their online reviews to see what past customers have said. And ask them questions – they shouldn’t be evasive.
Meet them and build up a rapport. Trust your gut instinct, and don’t make decisions without speaking to several estate agencies.
You can think things through by taking your time to make a decision. This helps to make the right choice.
