OFT approves estate agents redress scheme

A redress scheme is being set up to allow consumers to refer complaints about estate agents to an ombudsman.

The Office of Fair Trading (OFT) has already given approval to the Ombudsman for Estate Agents Company Ltd to set up a redress scheme under the Consumer Estate Agents and Redress Act 2007. Two other applications to run estate agent redress schemes are also being considered.

An OFT statement said: "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."

It's expected that all estate agents will be required to join an approved redress scheme by 1st October this year.