Estate agents are being reminded of the importance of having a process in place to check the documentation they receive at their office, in order to avoid potential claims.
This is according to Paul Offley, compliance officer at The Guild of Property Professionals, who says that most agents are in the habit of checking identification documentation for Anti-Money Laundering (AML) purposes, but there are other types of documentation that also need to be checked and not just accepted and filed.
He said: “Most agents will have a stringent process in place to ensure that they adhere to the requirements outlined with regards to AML but is the same level of checking applied to other documents, such as the property information questionnaires (PIQ).
“To exercise due diligence for consumer protection from unfair trade regulations, agents would issue some sort of property information questionnaire to sellers to complete. There are occasions when the seller would email or post this document back to the office.
“What sometimes happens is an agent will receive the document and tick off on their checklist that the PIQ has been returned by the seller, but they won’t actually read the document.”
He notes that agents should be checking the PIQ document to see whether there is any information that needs to be challenged back to the seller, or if there is anything in the document that could be considered material disclosure and therefore needs to be brought to the attention of any interested party.
He continued: “I would challenge agents to go back over the PIQ’s they received on their past few instructions to see whether there is any information that needed to be challenged or disclosed, or whether the documents were simply filed when received without going through some sort of checking process. If there is no process in place, important information could easily be overlooked.”
He added that having a process in place will strengthen the agent’s due diligence and it will highlight any potential pieces of information that the agent was not initially made aware of when they first took on the instruction. This will reduce the probability of any buyer having a CPR claim against the agent.
According to Offley, another document that agents should check when they receive it is the energy performance certificate (EPC).
He added: “There have been cases where EPC assessors have put down the incorrect information, resulting the property being rated at the incorrect energy level. Again, how many times do agents get the EPC and tick it off their checklist without going through the details. It is important for agents to check that the information contained in the document is stated correctly and relates it to the right property. Has anything been missed or does the size of the property on the certificate match the floorplans?”
Offley says that another reason to check the EPC is to see what can be done to improve the property’s energy efficiency. “These days everyone is very conscience of the cost of energy and what they can do to improve their energy efficiency, so agents could potentially use the information as part of their sales pitch to potential buyers. It is all about making sure the information is read, understood and what can be done to improve the energy efficiency,” he comments.
In conclusion, Offley says the same level of due diligence should be applied to all important documentation received by the agent. Having a process in place where all documents received are reviewed will ensure that no vital information is missed, and the agent is protected against any potential claims.
Prompted by the article do organisations like the Guild also have stringent process to deal with agents who are operating outside the case law precedents and legislations that govern the industry?
It’s obvious agents should comply with all the bits of law and shouldn’t need reminding but what happens if an agent does stuff they shouldn’t?
“Agents’ gripes” has been the get out of jail for NAEA for at least 37 years (probably longer)
RICS has a disciplinary panel that’s very serious and degrees miscreants very naughty indeed
ARLA shrugs its shoulders if there’s a spreadsheet to tally the latest CCA statement
The redress schemes wait for a consumer complaint and NTSELAT are waiting for the glacier beneath them to benefit from an end to climate change and to move in the right direction
In short who actually does anything about any wrong doing?
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It’s probably fair to give an example
I knew of a property coming to the market, a neighbour passed away and the executors who I knew preferred to go through an agent. Fair enough. I offered a fair price which reflected I thought the asking price was too low, (a probate figure rather than a realistic asking price) When I caught up with the executors a while later, they didn’t achieve asking price and knew nothing of my offer (£5k over asking). The agent had sold the property to a developer who then instructed them to sell the property on
Nothing about that is as it should be but nothing can or will be done and I’ll be the bad guy for saying.
Everyday Peebee is highlighting breaches of CPR and BPR to the portals, rogue agents with fictitious listings. no-one cares or gives a damn, no fine, no sanction no ban
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We have an ongoing with TPO, V is on our side of the argument………..
Dear Mr and Mrs Doe
Further to our recent correspondence, I can confirm that Bodgit & Scarper. have not provided their company file as requested.
The Adjudicator will, therefore, rely on the evidence that you have provided when they review the case, which we will now aim to do with 180 days.
However, it would also assist the Adjudicator if you could forward a copy of your contract with Bodgit and Scarper prior to the case being reviewed.
180 Days??????????????????????/
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I really don’t see why you would be the “bad guy” for making a complaint re your apparently unsubmitted offer. I get that you wouldn’t be the agent’s favorite person from now on but that is their problem, not yours.
You can’t complain about the lack of action from the authorities if you don’t bring such an incident which breaches the rules to anyone’s attention and this breach seems quite clear
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I know of a Guild agent who also has sold props to their mates, I also know agents now currently doing the same – they are stealing tens of thousands of pounds every month off their clients – other local agents also know. The negs and anyone who condones this need custodial sentences to stop this happening.
Ethically and morally doing the right thing can make you poorer but I like to sleep at night. Mind you I feel many people rip others off and still sleep well.
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Which proves the point that all the b++++++s spouted about exams and guilds etc is a load of self serving nonsense
I know an agent who regularly does cash deals for fees
eg fee is 6 k
He says to vendor do you want to make it 4k cash
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cash deals is different – yes illegal and defrauding HMRC – not as bad as stealing from sellers and getting backhanders from their mates
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Fiduciary duty to the client!
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And here’s the great divide; does supplier be it a portal or an affinity group such as RAN, Guild, FIA (insert other) get behind the member agent or what’s right and proper
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Obviously, any group has to follow the law if a member is found guilty.
Maybe groups should mystery shop members to check their ethics? Offering cash
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