Ever wondered what keeps estate agents in check and ensures their clients are treated fairly when buying or selling a home? The Estate Agents Act 1979 is a crucial piece of legislation that does just that. It is a law that acts as a safety net for both estate agents and clients.
Here, the team at Shortland Horne take a closer look at what the Estate Agents Act 1979 is.
What is the Estate Agents Act 1979?
The Estate Agents Act 1979 sets out the legal guidelines that estate agents across the UK must adhere to. It ensures that estate agents act with honesty and transparency, and every estate agent must comply with the legislation.
The Estate Agents Act 1979 covers all individuals who work in estate agency. It includes those working in residential, commercial and agricultural agency settings and any other form of estate agency that handles the sale of land or property. It’s worth noting that it does not cover solicitors, surveyors or financial advisers.
It is the main piece of legislation for estate agents in the UK, but in 1991, additional legislation was introduced. These include:
- The Estate Agents (Provision of Information) Regulations 1991
- The Estate Agents (Undesirable Practices) (No 2) Order 1991
- The Estate Agents (Specified Offences) (No 2) Order 1991
The legislation covers the following key areas:
- Connected persons and personal interest
Estate agents cannot ask for or receive a deposit if there is a personal interest. If there is a personal interest, it must be disclosed promptly in writing.
- Undesirable practices order
This ensures estate agents promptly inform sellers of any offers and if a buyer takes services from them. It also prevents agents from discriminating against a buyer who is not taking services from them or misrepresenting the buyer’s status or offers.
- Handling clients’ money and deposits
The act mandates that estate agents must handle clients’ money responsibly and with integrity, safeguarding these funds in a dedicated account.
- Professional conduct
Estate agents are expected to provide accurate and truthful information about properties, avoiding any misleading or false statements that could deceive buyers or sellers.
Compliance and penalties
By law, estate agents must comply with the act. Failure to comply with the legislation can result in severe consequences. These can include:
- Fines
Estate agents found in violation of the act can be fined. These penalties can be hefty and lead to financial damage for the estate agents.
- Prohibition Orders
In severe cases, it may be possible that the estate agents can be banned from practising.
- Reputation Damage
Non-compliance can also significantly damage an estate agent’s reputation, impacting their ability to attract and retain clients.
Are you thinking about moving in 2024?
Whether you’re looking to upgrade your home, downsize or are considering relocating, then get in touch to see how the friendly team at Shortland Horne can help.
Supporting clients in Coventry and the Midlands, Shortland Horne is here to help and guide you every step of the way. Remember, your house is more than just a space, it’s a home – and it should compliment you, your lifestyle and your circumstances. Don’t hunt for your next home alone – contact Shortland Horne today.