Provident Life has identified a loophole in last year’s legislation on estate agency.
The problem centres on regulations relating to offers made on a property.
These oblige agents to pass on all offers to the vendor, prevent bogus offers and force disclosure by agents to vendors of any services which the agent is providing to parties making offers.
But Dave Blackman, of PL’s legal team, suggests that the definition of the word “offer” is loose enough to provide grounds for a legal defence on a technicality by an agent who is accused of breaking the rules. “The word ‘offer’ has a precise legal meaning. If a potential purchaser makes an offer he is basically ascertaining the price at which the vendor is prepared to sell. This is not necessarily an offer in law — particularly as it may be withdrawn at any time without penalty.”
He believes that the wording needs to be tightened up and PL has written to the Office of Fair Trading with draft wording for an amended order.
