The Office of Fair Trading (OFT) has approved a second scheme to monitor estate agents as part of government plans to increase regulation of the industry.
The redress scheme put forward by the Ombudsman Service, called the Surveyor Ombudsman Scheme, was the second of three being considered to get given government backing.
Under the Consumer Estate Agents and Redress Act 2007, all estate agents have to join a complaints body from October, when the Act comes into force.
Once it is compulsory for estate agents to join an approved scheme, buyers and sellers will be able to refer complaints to that authority for free and can require the estate agents to pay compensation.
The OFT, which started the tendering process in October 2007, is still considering an application to operate a similar scheme by the Register of Estate Agents.
Each applicant had to explain how it would address 16 specific points concerning its independence, resourcing, processes, transparency and compensation systems, including how complaints against the redress system itself would be handled.
OFT executive director Jonathan May said: “The SOS scheme has successfully met the criteria applied by the OFT.
“Buying or selling a home is a significant and complex transaction so it is good news that, from October, there will be access to free, easily accessible and speedy redress schemes that will ensure fairness and transparency.”
The Surveyors Ombudsman Service was established to deal with complaints made against chartered surveyors which are members of RICS, and will now be open to all estate agents.
Steven Gould, RICS director of regulation and consumer protection, said: “RICS is delighted that the Surveyor Ombudsman Scheme has been approved by the OFT.
“It means that ‘Regulated by RICS’ firms can use just one scheme for all their consumer redress needs, while the public can look to the RICS name to deliver the protection and competence they have a right to expect.”
The scheme put forward by the Ombudsman for Estate Agency in June this year was the first to get official backing.
