Yesterday The Property Ombudsman Katrine Sporle announced that TPO and Trading Standards TSO are teaming up to look at referral fees paid to and or by estate agents.
There is to be a survey of agents on what happens currently and this is against the backdrop of the Government saying in April that referral fees could be banned to make agents more professional and in line with other sectors.
How much do you know about the codes of practice and the law with regard to referral fees?
Are you applying the rules consistently through procedures, training and good practice. Here is a brief summary of the main rules to stick to:
If you do have referrals make sure you have stated this on your T&Cs terms and conditions for Landlords and your agency contract with sellers. Buyers who make an offer or use your service need to know also:
– It must be written in a way that is easily understood by the ‘average consumer’
– You must act honestly in the best interest of your clients and there should be no conflict of interest
– You should not make a secret profit or try to hide the fact that you are receiving a referral fee
– You cannot recommend financial products such as insurance unless you are licensed to do so.