Buyers, sellers, tenants and landlords in Soham, Cambridgeshire, are being warned that a local estate and letting agent Let365co Ltd (trading as 365 Residential) has been expelled from The Property Ombudsman (TPO) scheme owing a landlord £1,895 of a £3800 award made by the Ombudsman.
A landlord made a complaint to The Property Ombudsman in relation to shortcomings in service provided by 365 Residential, which managed his 19 properties.
On reviewing the complaint, the Ombudsman supported the landlord’s case noting that the agent had failed to; obtain, or take all reasonable steps to obtain, Gas Safety Certificates for two properties; maintain records of periodic inspections carried out at all of the properties; provide the landlord with a signed Tenancy Agreement for one property; carry out or provide the landlord with inventories for 15 of the properties and had failed to respond to a complaint letter regarding one of the properties. The Ombudsman made a total award of £3800 to reflect the avoidable aggravation caused to the landlord.
After correspondence between TPO’s independent Compliance Committee and the agent, 365 Residential agreed to a monthly payment plan to pay the award to the landlord. However, to date the agent has only paid £1,905, with the last payment made in June, leaving £1895 outstanding.
TPO’s independent Compliance Committee has now ruled that the firm should be expelled from The Property Ombudsman scheme.
365 Residential is not currently registered with a redress scheme, which is a requirement of every sales and letting agent in order to trade legally*. Trading Standards have been informed of the expulsion. They also do not appear to be a member of a Client Money Protection scheme**, also a legal requirement, and do not have any professional memberships. However, the agent does have an active Zoopla account with properties listed both to let and for sale.
Gerry Fitzjohn, Non-Executive Director and Chairman of TPO’s Finance Committee: “As a member of TPO, agents are obliged to comply with awards made by the Ombudsman, which 365 Residential has failed to do. This is a warning to consumers as the company does appear to still be advertising properties for sale and to let. We would like to remind consumers to ensure they always use an agent which is a member of a redress scheme (The Property Ombudsman or The Property Redress Scheme) and holds Client Money Protection**.”
*N.B. Every sales and lettings agent in England is required to register with a Government-approved redress scheme, which enables consumers to have their complaint reviewed independently in the event of a dispute arising that the consumer is unable to resolve with the agent directly.
An agreement between the two Government-approved redress schemes (The Property Ombudsman and The Property Redress Scheme, means 365 Residential will not be able to register for any form of redress until the award is paid. Redress registration is required for the agents to trade legally.
**Full list of Client Money Protection schemes, is:
Money Shield, Client Money Protect, NALS Client Money Protection, Propertymark, RICS, UKALA Client Money Protection
For press information, please contact:
The Inhouse Way
Tel: 01276 804411
Helen Evison: 07920 516 577
Holly Addinall: 07979 537 334
NOTES TO EDITOR:
What is The Property Ombudsman?
The Property Ombudsman (TPO) scheme offers an independent and impartial dispute resolution service to consumers who have been unable to resolve their disputes with a registered agent. The scheme was established in 1990. The Ombudsman can provide redress to place the consumer back in the position they were before the complaint arose, achieving a full and final settlement of the dispute and all claims made by either party. Where appropriate, the Ombudsman can make compensatory awards in individual cases up to a maximum of £25,000 for actual and quantifiable loss and/or for aggravation, distress and/or inconvenience caused by the actions of a registered agent.
TPO is funded through membership subscriptions and case fees and is free to all consumers.
At 31 December 2018 over 15,897 sales offices and 14,746 letting offices were registered with TPO.
Whilst TPO charges registered agents an annual subscription, the Ombudsman is accountable to the TPO Board which is chaired by a member of the House of Lords and with the majority of its members being independent from the industry.
The Ombudsman is not a regulator and does not have the authority to take regulatory or legal action against a registered agent.
Awards made by the Ombudsman in 2018 were paid by agents to consumers in 97% of cases. In the few cases where awards remain unpaid, agents are referred to the TPO Compliance Committee, which has the power to expel agents from the scheme. Expelled agents are reported to the appropriate authorities who have the power to ban agents from carrying out agency business.
If TPO becomes aware that an agent under investigation has ceased trading, complainants are promptly informed and, where an award is made, are provided with the necessary documentation to make a claim against that company. TPO’s agreement with the Property Redress Scheme, means that not only will expelled agents not be able to register for any form of redress, but any new company set up by the same directors will not be accepted for redress membership, until the Ombudsman’s award is paid.
The Ombudsman's Terms of Reference, Codes of Practice, Consumer Guides and other documents about the operation of the scheme are available on our website (www.tpos.co.uk), together with previous annual and interim reports, case summaries, further explanation of governance arrangements and a full list of registered agents.
For more information about TPO, please visit our website at www.tpos.co.uk