OFT gives approval to estate agents redress scheme

The OFT has given the Ombudsman for Estate Agents Company Limited (OEA) approval for its estate agents redress scheme under the Consumer Estate Agents and Redress Act 2007 (CEARA).

With the approval of a redress scheme, the Secretary of State for Business Enterprise and Regulatory Reform (BERR) will now be able to make an order under CEARA requiring all estate agents dealing with residential property in the UK to join an approved scheme. BERR expects this order to become law and commence on 1 October 2008, from which time estate agents will be required to join an approved scheme.

In the meantime, the OFT is considering two other applications to operate estate agents redress schemes and will announce decisions on these as soon as possible. Details of these applications can be found on the OFT website oft.gov.uk.

Once it becomes compulsory for all estate agents to join an approved scheme, buyers and sellers of residential property will be able to refer complaints concerning members of the scheme to an ombudsman to be determined. The ombudsman will have the power to make a range of awards, including requiring a member to pay compensation. The ombudsman's decision is binding on the estate agent, although a complainant can choose to reject the decision and pursue their complaint through the courts. The OEA's approved redress scheme will be a free service to complainants.

John Fingleton, OFT Chief Executive, said: 'The OEA scheme has successfully met all the criteria applied by the OFT. House buyers and sellers will soon have access to a free, easily accessible and speedy estate agents redress scheme that will ensure independence, fairness and transparency. We are also actively considering other applications to operate similar redress schemes.'