When it comes to polls on which professions people trust,
estate agents are always near the bottom of the pile.
And the property salesmen and women will not be climbing
any further up the trustworthy tree following a recent
expose of estate agents' sharp practice.
The BBC's Whistleblower programme followed an eight-month
investigation into a number of agents, ranging from London
giant Foxtons to small independents, and uncovered a murky
world where buyers and sellers were regularly duped.
Many people were outraged by what was revealed, with
agents fiddling sales, artificially raising purchase prices
and hoodwinking customers. But is it fair to tar Britain's
12,000 estate agencies with the same brush? Or was this
just an example of the minority spoiling it for the majority?
The answer lies somewhere in between and it is always
important to remember two things. Firstly, whether you
are buying or selling, an estate agent is a salesperson.
They work on commission and are under pressure to deliver.
Secondly, the process of buying or selling a house is
fraught with any number of things that can go wrong and
when sales fall through it is often beyond the agent's
control.
But what can you do to ensure that if problems with the
agent occur, you can get some redress? The key is to choose
an agency that has signed up to the Ombudsman for Estate
Agents code of practice. Then if you make a complaint
that is upheld, the Ombudsman can fine them up to £50,000
– a hefty deterrent against indulging in foul play.
Ombudsman Stephen Carr-Smith said: 'The first thing to
do if you have a problem is to raise it with the agent
straight away. Then there is a chance for whatever has
gone wrong to be put right. Unfortunately a lot of complaints
aren't made in time for action to be taken. If a problem
is raised that day or in the next few days, an agent has
the chance of remedial action.'
The estate agent a customer deals with and the firm's
own complaints procedure should be the first port of call
if difficulties occur. But if this fails to satisfy, then
by picking an ombudsman covered agent clients have an
added safety net which can award up to £25,000 compensation
– separately from any fine. The uncovered alternative
leaves the only recourse a complicated trip to the small
claims court.
Previously picking an OEA covered agent meant choice
could be limited, with only 40% of agents signed up to
the code. But from April all members of the National Association
of Estate Agents will be obliged to sign up – meaning
almost seven out of ten agents will be covered.
And Mr Carr-Smith said he hopes this could be boosted
further if the Royal Institution of Chartered Surveyors
obliges its members to sign up to the code, too.
This would mean that of the remaining agents, clients
of upmarket big players such as Savills, Lane Fox and
Knight Frank would also be covered.
The OEA's code of practice has been approved by the Office
of Fair Trading and the ombudsman and many OEA and NAEA
affiliated agents have called for better regulation in
the market.
Mr Carr-Smith said: 'There are three messages I am trying
to get across. There should be a single code of practice
for all agents; all agents should be in the ombudsman
scheme, so open to independent scrutiny; and all agents
should be licensed to show they are qualified.'
The recent highlighting of some rogue practices has added
weight to calls for the salesmen who deal with most people's
biggest life purchase to be regulated and responsible
agents have urged this as much as customers.
Dan Atkinson, director of Atkinson McLeod, says none
of the agents in the Whistleblower programme were NAEA
members.
He said: 'Agents that belong to the NAEA and Association
of Residential Lettings Agents want nothing more that
to see the industry regulated, sooner rather than later.'This
will turf out the unscrupulous and dishonest agents out
there who continue to give others a bad name.'
Five ways to make sales go smoothly.
1. Use an NAEA covered estate agent
2. Watch out for agents offering high valuations to get
business
3. Check particulars and adverts carefully
4. Remember the principle of caveat emptor – buyer
beware – applies
5. Conduct careful viewings of properties not a rushed
five-minute look
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