Ombudsman
Christopher Hamer,
The Property Ombudsman
notes the changing market is
bringing a shift in the source
of property related disputes
from sales to lettings
I
n my Annual Report for 2008 I noted Deposits
that the number of lettings disputes I The third issue arises in tenant versus
was being asked to resolve was agent disputes and relates to the retention
increasing significantly. Since 1 January of holding deposits where the tenancy does
2009 that increase in lettings cases has not proceed. If the terms of the deposit,
continued. By contrast sales disputes are when it will be forfeit or repaid are made
slowing with some 38 per cent fewer cases clear in a deposit receipt I will not rewrite
in the first quarter of 2009 than in the final ‘As sales disputes the arrangement but I caution that the
quarter of 2008; these follow the changing terms must be made absolutely clear and
trends in the residential property market. slow, I am seeing a unambiguous and by way of best practice,
Now that I am seeing greater numbers the agent should verbally reiterate those
of lettings disputes I am starting to see greater number of terms to the prospective tenant.
some common causes of dispute between
landlords or tenants and letting agents. It is lettings disputes new logo, bRoaDeR scope
my view that misunderstanding and On 1 May the Ombudsman for Estate
miscommunication are primary causes for and some common Agents scheme changed to The Property
the dissatisfaction arising and subsequently Ombudsman Service (TPOS). There is a
lead to the parties being in dispute. They causes of dispute.’ new logo (pictured) for window displays, in
fall into three areas. blue with the OFT Approved Codes
symbol alongside for sales offices and
RefeRencing inspections green without the OFT logo for lettings.
The first of these concerns referencing. The second issue concerns inspection Commercial property sales members will
Under The Property Ombudsman Code of visits. Landlords will bring disputes to me have a black logo.
Practice an agent is required to carry out because they consider that the agent has “Membership has increased
prudent referencing of the tenant in order carried out insufficiently frequent or dramatically in the past few years and at
to protect the landlord’s position. Prudent diligent inspection visits of their property. the same time OEA has also expanded to
referencing of course will not necessarily The usual complaint is that at the end of take in lettings as well as its original remit
identify a tenant who is going to default on the tenancy the property is found to be in to cover agents selling residential property,”
the rent, trash a house or set up a cannabis need of much repair, poorly cleaned and so explains Bill McClintock, chief operating
farm. Nonetheless I have seen cases where on. It appears to me that there is quite officer for TPOS. “In the near future, we
the referencing, whilst conducted often a misunderstanding amongst will also be embracing some commercial
prudently, has highlighted something landlords that routine inspection visits will property activities as well as the UK end of
which should have indicated to the agent be as comprehensive as a check-in or foreign residential property transactions.
that all might not be as it seemed. check-out and will take place more “As the principal means of redress for
An example of this might be an unusually frequently than is actual practice. If an consumers in the property sector, reflected
prepared bank statement or a reference agent has committed to carrying out visits by 95 per cent of UK estate agency offices
from a previous landlord who happens to at a certain level of frequency but does not, being covered and our widening fields of
be a close relative. The letting agent should then I will likely find against them if there activity extending to HIPs and property
then have alerted the landlord to the is a subsequent dispute; but it is usually the search providers, we consider the old name
precise picture that had been portrayed of case that the landlord has one view of what no longer reflected all that we do.”
the prospective tenant to allow that will happen whilst the agent has another.
landlord to make an informed decision as The message has to be clear about the
Any comments?
www.propertydrum.com/
to whether he wants to proceed. nature and frequency of visits.
articles/ombudsmanjune
PROPERTYdrum june 2009 43
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