Clause 53
Consumers, Estate Agents and Redress Bill
11:30 am
Michael Weir (Spokesperson (Energy; Work and Pensions; Trade & Industry); Angus, Scottish National Party)
With this it will be convenient to discuss the following:
New clause 2—Standards of competence
‘(1) Section 22 of the Estate Agents Act 1979 (c.38) (Standards of competence) is amended as follows.
(2) For subsections (1) and (2) substitute—
“(1) The Secretary of State will by regulations made by statutory instrument designate any body of persons as an approved body to which people engaged in estate agency work, including both the sale and lettings of residential property, must belong.
(2) The approved bodies must make membership conditional on signing up to rules and codes of conduct, which will—
(a) prescribe minimum competency standards;
(b) ensure that firms have adequate professional indemnity insurance and, as appropriate, clients money protection insurance;
(c) require a minimum level of professional development per year; and
(d) require membership of a redress scheme.”.’.
New clause 4—Monitoring by Office of Fair Trading
‘(1) The Estate Agents Act 1979 (c. 38) is amended as follows.
(2) After section 22 insert—
“22A Monitoring of compliance by Office of Fair Trading
(1) An estate agent shall be obliged to register with the OFT and shall provide such information as the OFT may require.
(2) The Secretary of State shall prescribe a scale of fees to be charged to estate agents for registration.
(3) The OFT shall establish, or shall cause to be established, a unit to monitor compliance with the provisions of this Act and this unit shall have powers to make reasonable requirementsof estate agents to ensure compliance with the provisions ofthis Act.
(4) In pursuance of subsections (1) and (3), the OFT—
(a) shall require estate agents to certify that they comply with the provisions of this Act and any code of practice to which they have subscribed;
(b) may require an estate agent to produce any records or information and to co-operate in any investigation; and
(c) may conduct or commission investigations and surveys to monitor compliance with the Act.
(5) Failure to comply with any requirement made by the OFT under this section shall be an offence punishable on summary conviction by a fine not exceeding level 5 on the standard scale.
(6) This section comes into force 18 months after the date on which the Consumers, Estate Agents and Redress Act 2007 receives Royal Assent.
(7) In subsection (2) above “prescribe” means prescribed by the Secretary of State by order made by statutory instrument, which shall be subject to annulment in pursuance of a resolution of either House of Parliament.”
(8) In section 30(2) (orders and regulations), after ‘22’ insert ‘and 22A’.”.’.