1d You must ensure that all staff are fully conversant with all
aspects of this Code of Practice and their legal
responsibilities. Such staff must observe this Code and their
legal responsibilities in all their dealings with consumers.
Staff must have a good working knowledge of the law of
agency, the law of contract, and all relevant estate agency
legislation; and familiarity with the basic conveyancing and
mortgage application processes.
1e You should provide a service to both buyers and sellers
consistent with fairness, integrity and best practice; and you
should not seek business by methods that are oppressive or
involve dishonesty, deceit or misrepresentation. You must
avoid any course of action that can be construed as aggressive
behaviour (*) or harassment (*).
1f You must treat consumers equally regardless of their race,
religion or belief, sex, sexual orientation, gender reassignment
status, disability or nationality. Unlawful discrimination
includes giving less favourable treatment because someone
is perceived to have one of these personal characteristics or
because they are associated with a person with such a
characteristic.
1g You should take special care when dealing with consumers
who might be disadvantaged because of their age, infirmity,
lack of knowledge, lack of linguistic ability, economic
circumstances or bereavement.
Code of Practice for
Residential Estate Agents
(
England, Wales and Northern Ireland)
Registered Office: The Property Ombudsman Limited, Milford House, 43-55 Milford Street, Salisbury, Wiltshire SP1 2BP. Registered in England: 3339975.
TPOE27-3
@TPOmb
facebook.com/
PropertyOmbudsman
The Property Ombudsman Milford House, 43-55 Milford Street, Salisbury, Wiltshire SP1 2BP
Consumer Enquiries Tel: 01722 333 306 Fax: 01722 332 296
1. General Provisions
Applicability
1a This Code applies to estate agency services (*) in the United
Kingdom (except Scotland) provided by a person or
organisation who has agreed or is required to comply with it
for the marketing of residential property (*). Note that letting
and buying agents in the United Kingdom and letting,
management and sales agents operating in Scotland are
covered by separate Codes of Practice.
General Obligations
1b You (*) must comply with this Code of Practice. You must
comply with all laws relating to residential estate agency and
in particular the Estate Agents Act 1979, the Consumers,
Estate Agents and Redress Act 2007, Data Protection Act 1998,
Unfair Terms in Consumer Contracts Regulations 1999,
Competition Act 1998, the Consumer Protection from Unfair
Trading Regulations 2008 (CPRs), Business Protection from
Misleading Marketing Regulations 2008 (BPRs), Consumer
Contracts (Information, Cancellation and Additional Charges)
Regulations 2013, Consumer Rights Act 2015, Energy Act 2011
(Green Deal) and all other current and relevant primary or
secondary legislation.
1c You must register with the appropriate authority in accordance
with the Money Laundering Regulations 2007.
Effective from 1 October 2015
This Code of Practice is mandatory for all TPO Members who are entitled to display the above logo and
who offer estate agency services. Copies of this Code of Practice and the TPO Consumer Guide should be
made available in all your offices. You should prominently display the logo in the window of all your offices.
Contents:
1. General Provisions
2. Duty of Care and Conflict of Interest
3. Advertising for New Business
(Canvassing)
4. Market Appraisal
5. Instructions, Terms of Business,
Commission and Termination
6. Energy Performance Certificates
7. Marketing and Advertising
8. Viewing and Access to Premises
9. Offers
10. Financial Evaluation
11. Deposits
12. Between Acceptance
and Exchange of Contracts
13. Exchange and Completion
14. In-house Complaints Handling
15. Referrals to the Ombudsman
16. Compliance Monitoring/
Compliance Surveys
17. Non-Compliance with the Code
18. Glossary of Terms
All references to the masculine include the feminine, and to the singular include the plural. Terms marked (*) - the first time they appear
are defined in a Glossary of Terms at Section 18.
Code of Practice for Residential Estate Agents – page 2 of 8
1h You must not release or misuse confidential information given
b
y your client (*) during the process of selling or buying a
property (*) without your client’s permission unless legally
required to do so.
1i You must keep clear and full written (*) records (*) of all
transactions for a period of 6 years and produce them when
required by the Ombudsman.
1j As a TPO Member (*) you must not take, or be involved in any
action which would bring the scheme into disrepute.
Promoting Your Business
1k In accordance with the Alternative Dispute Resolution for
Consumer Disputes (Competent Authorities and Information)
Regulations 2015, you must include TPO’s name and website
address on your website, within your terms of business and
within any other sales or service contract you agree with a
consumer.
1l In addition, you must use and display such material promoting
the Code of Practice as provided by TPO. You must
prominently display the TPO logo on your website, the window
of all offices, and on relevant documentation such as
marketing literature, property advertisements, and on your
letterheads.
1m You must have available, free of charge, copies of this Code of
Practice to give to consumers on request. You must also
prominently display copies of the Consumer Guide leaflet in
all your offices.
2. Duty of Care and Conflict of Interest
2a You must treat all those involved in the proposed sale or
purchase including sellers, potential sellers, buyers and
potential buyers fairly and with courtesy.
2b You must avoid any conflict of interest. You must disclose at
the earliest opportunity in writing (*) to your client or any
relevant third party any existing conflict of interest, or any
circumstances which might give rise to a conflict of interest.
2c If you intend to offer potential buyers surveying, financial,
investment, insurance, conveyancing or other services or
those of an associate (*) or connected person (*), you must by
law advise your clients either separately in writing or within
your Terms of Business.
2d Customer (*) requirements are key and this applies to the
potential viewer/buyer as well as the seller. You should
complete a consumer fact find to ensure that any specific
requirements of the seller or potential buyer may be taken
into consideration.
2e You must by law tell the seller in writing or in the
memorandum of sale, as soon as reasonably possible after you
find out that a prospective buyer, who has made an offer, has
applied to use your surveying, financial, investment, insurance,
conveyancing or other services or those of an associate or
connected person in connection with that purchase.
2f If your firm is instructed to sell a property and you, an
employee or an associate (or an associate of the employee of
your firm) is intending to buy it you must by law, before
negotiations begin, give all the relevant facts, in writing, to the
seller; and as soon as possible to his legal representative.
2g If you or an employee or an associate is intending to buy a
property which your firm is instructed to sell, that person
m
ust take no further direct part in the sale of that property on
behalf of your business
2h If you are selling a property that is owned by you, an employee
o
r an associate (or an associate of an employee) or in which
you, an employee (or an associate of an employee) has an
interest, you must by law, before negotiations begin,
immediately make this known, in writing.
3. Advertising for New Business (Canvassing)
3a You must not use unfair methods when seeking new properties
for sale by unsolicited approaches. Advertising material must
be truthful, not misleading and fully explain who the message
is from, its purposes and how the seller’s interest can be
followed up.
3b In your canvassing material, if you seek to use a property you
have recently sold and where completion has occurred, you
must obtain the new owner’s prior permission.
3c When you advertise for new business your fees should be
shown inclusive of VAT alongside a statement confirming that
VAT is included.
3d If as a result of an unsolicited approach a seller is interested
in using your services, you must draw to their attention, and
explain before they are committed to another contract, the
potential of paying fees to more than one agent where another
agent has been previously instructed to sell their property.
3e You must take decisions on the content of your advertisements
independent of your competitors, including whether to advertise
your fees, charges or any additional costs, or any special offers,
discounts or other value offering.
3f You must act promptly if a seller or property owner asks you
to stop canvassing them.
4. Market Appraisal
4a When you give advice to someone selling their property, any
figure you advise, either as a recommended asking price or as
a possible selling price must be given in good faith and must
reflect available information about the property and current
market conditions and must be supported by comparable
evidence. You must never deliberately misrepresent the market
value of a property.
4b Any evidence relating to comparables of similar properties in
a similar location must be retained on file for future reference.
4c You must keep your marketing strategy under regular review
with your client.
5. Instructions, Terms of Business, Commission
and Termination
Instruction
5a You must, at the point of instruction, inform your client in
writing that you are a Member of the TPO scheme, and
subscribe to this Code of Practice.
5b You must not directly or indirectly harass (*) any person in
order to gain instructions, nor must you repeatedly try to gain
instructions in a way likely to cause offence.
Code of Practice for Residential Estate Agents – page 3 of 8
5c You must not instruct other agencies to assist you in selling a
property without the seller’s permission. If the seller gives
permission, as the instructing agent, you are liable at law for
the actions of the sub-instructed agent and will be held
r
esponsible for any failures to comply with this Code of
P
ractice by that sub-instructed agent even if that sub-agent
is not a TPO Member.
5d Notwithstanding 5c above if you are instructed as a sub-agent
or share listings via a website, you must continue to act in
accordance with all relevant provisions of this Code of Practice.
5e You must give your client written confirmation of his
instruction for you to act in the buying or selling of property
on his behalf. You must by law give the client written details
of your Terms of Business including your fees and charges
before he is committed or has any liability towards you.
Fair Contracts
5f Your Terms of Business and your contract must be consistent
with the provisions of this Code of Practice and comply with
the Unfair Terms in Consumer Contracts Regulations 1999.
5g Your Terms of Business should be written in plain and
intelligible language. In particular you must use in your Terms
of Business the specific definitions in the Estate Agents
(Provision of Information) Regulations 1991. You must take
particular care for example in defining and distinguishing
between ‘sole agency’ and ‘sole selling rights’; and in
describing a ‘ready, willing and able’ contract. You must use
the relevant definitions in full, and clearly explain the
implications of the terms to your client.
Fees and Charges
5h All fees and additional costs must be included in your Terms
of Business. They must be fully explained, clearly and
unambiguously stated in writing before the seller is committed
to the contract.
5i Where the fee is a percentage you should clearly state
whether VAT is chargeable and must express it as an actual
amount plus VAT. The example amount should be based on
the asking price. However, you must make it clear that, should
the selling price be higher or lower than the asking price, your
commission fee will be correspondingly higher or lower.
5j Where you charge a fixed fee you should state the actual
amount payable including VAT in the contract and ensure that
the seller understands that the fee will not vary whatever the
sale price.
5k Except for any previously agreed additional costs, commission
fees will become due on exchange of contracts.
5l In the circumstances where a buyer may become liable for
your fees, this liability must be communicated at the earliest
opportunity such that in all forms of media, the property
asking price is accompanied by a statement that ‘buyer’s fees
apply’ and that websites allow for a click-through to an
information pack and FAQs. Appropriate arrangements should
be made to provide the same information where non-
electronic access is present. The information pack should
have ‘key features’ of the approach as the first page and
include a full explanation of all fees and additional costs, the
circumstances upon which they become due and advise that
by paying your fee, that amount may be considered as part of
the chargeable consideration for the property and be included
i
n the calculation for stamp duty liability.
Duration and Termination
5m Your Terms of Business must clearly state the minimum
d
uration of your instruction, and how it can be terminated by
either party. When a contract is signed by a client during a visit
by you to his home, at his place of work, away from your
premises or online, then he must be given a right to cancel
that contract within 14 calendar days of signing. He should be
given a ‘Notice of Right to Cancel’. Where the client wishes
the contract to begin before the end of the 14 day cancellation
period you must obtain confirmation of that request in writing.
Where you intend to recover costs incurred during this
cancellation period you must obtain the client’s agreement in
writing to those specific costs before work commences.
5n If you intend to charge the client a fee or recover costs for
terminating the instruction, you must make this clear and
specify the amount of the fee and additional costs and their
purpose.
5p On receipt of the seller’s instruction (includes executor,
trustee, person holding power of attorney), or on your own
decision, to terminate your instruction, you must promptly give
him written confirmation that you are no longer acting for him,
confirm the actual date of termination, and give details of any
fees or additional costs the client owes you (see 5s below).
5q Your contract must allow for the required notice of termination
to be given before the end of the term, such that termination
by the client can occur at the expiry of the minimum term.
Fee Entitlement and Client Liability
5r At the time of accepting instructions from a client, you must
point out and explain clearly to that client in your written
Terms of Business:
• that you may be entitled to a commission fee if that client
terminates your instruction and a memorandum of sale is
issued by another agent to a buyer that you have
introduced within 6 months of the date your instruction
ended and where a subsequent exchange of contracts
takes place.
If no other estate agent is involved this time limit extends
to 2 years.
• and that the client may be liable to pay more than one fee if:
• that seller has previously instructed another agent to
sell the same property on a sole agency, joint sole
agency or a sole selling rights basis; or
• that seller instructs another agent during or after the
period of your sole agency, joint sole agency or on a
sole selling rights basis.
5s At the time of the termination of the instruction, you must
explain clearly in writing any continuing liability the client may
have to pay you a commission fee and any circumstances in
which he may otherwise have to pay more than one
commission fee.
5t Your action in pursuing a commission fee or additional
charges must be proportionate and reasonable and not
intimidatory.
Code of Practice for Residential Estate Agents – page 4 of 8
5u Although nothing precludes you taking court action to pursue
payment of your commission account, it is generally expected
that you will not take court action when a complainant has
referred the matter to the Ombudsman. If however you
dopursue payment of your commission fee through the courts
you must agree to the Ombudsman considering any
outstanding service-related complaints after the court action
has been determined.
Signing
5v You must sign and date your Terms of Business before they
are given to your client. The client should be asked to sign and
be given a copy to retain. The client must be given sufficient
time to read them before agreeing to instruct you (refer also
to paragraph 5m above).
5w You should take reasonable steps to satisfy yourself that
the seller is entitled to instruct you and to sign on behalf of
all co-sellers.
Subsequent Changes
5x Any subsequent changes to the Terms of Business must be:
• Mutually agreed by you and your client.
• Promptly confirmed in writing.
• Where appropriate, contained in a new Terms of Business
signed and dated by your client.
6. Energy Performance Certificates
6a The provisions set out in paragraphs 5f – 5k, 5m, 5n, 5t and 5v
above should be followed when entering into an agreement
with a seller for the supply of an Energy Performance
Certificate (EPC) in relation to the property to be marketed.
6b You must provide adequate information to the seller to enable
the seller to understand the basic legal requirement for and
content of an EPC, and use in relation to the marketing of the
property.
6c You must advise the seller in writing of all charges relating to
the supply of an EPC and the terms of payment.
7. Marketing and Advertising
7a You must not put any property on the market for sale without
permission from the seller, without obtaining adequate proof
of identification of the seller in accordance with Money
Laundering Regulations 2007 and without commissioning an
EPC compiled in accordance with the relevant legislation.
For Sale Boards
7b You must not erect any form of estate agency board at a property
unless you have been instructed to market that property.
7c You can only erect an estate agency board with the specific
permission of the client.
7d Any board you do erect must be appropriate for the occasion.
7e When you put up a board you must by law comply with the
Town and Country Planning (Control of Advertisements)
Regulations 2007. You must accept liability for any claim
arising under these Regulations in connection with the board.
7f If your board relates to part of a building in multiple occupation,
it should indicate the part of the building to which it relates.
7g You must not replace another agent’s board with your own,
hide it or remove it from a property, without the client’s
permission or without notifying the other agent.
7h You must comply with local legislation in relation to erecting
your boards.
Published Material and Information about a Property
7i You must by law comply with the Consumer Protection from
Unfair Trading Regulations 2008. The Consumer Protection
from Unfair Trading Regulations 2008 require you to disclose
any information of which you are aware or should be aware
o
f in relation to the property in a clear, intelligible and
timely fashion and to take all reasonable steps that all
statements that you make about a property, whether oral,
pictorial or written, are accurate and are not misleading.
All material information (*) must be disclosed and there
must be no material omissions which may impact on
the average consumer’s (*) transactional decision (*) and
where information is given to potential buyers or their
representatives, it must be accurate and not misleading.
7j The written details of a property (sales particulars) must be
agreed with the seller to confirm that the details are accurate.
7k In regard to leasehold properties, you should include basic key
information such as service charges; ground rent; the length
of years remaining on the lease; any known special conditions,
and advise sellers and prospective purchasers that there may
be additional fees that could be incurred for items such as
leasehold packs. In relation to sheltered housing, you should
include in sales particulars the existence and level (if known)
of event fees (*).
7l You will be liable if you include anything in the sales
particulars which you have reason to doubt is correct.
7m All advertisements must be legal, decent, honest and truthful
in accordance with the British Codes of Advertising and Sales
Promotion and Direct Marketing.
8. Viewing and Access to Premises
Viewings
8a You must take instructions from the seller as to his
requirements regarding viewings, specifically whether or not
they should be conducted by you.
8b You must record any viewings that have been arranged for that
property, feedback from those viewings and pass this to the
seller within a timescale agreed with your client. If this
feedback is an offer, you should refer to section 9 below.
8c Before arranging any viewing, you must tell the viewer if you
are aware of an offer that has already been accepted subject
to contract, by the seller.
8d When you know the property has been marketed by another
agent you should establish if your viewer has previously
viewed the property through that or any other agent.
Access to Premises
8e Unless otherwise instructed by the seller, if you hold the keys
to a property you must accompany any viewings of that
property. If you are arranging for someone to view an occupied
property, you must agree the arrangements with the occupier
(including any tenants) beforehand, wherever possible.
Code of Practice for Residential Estate Agents – page 5 of 8
8f You must make sure that all the keys you have are coded and
k
ept secure. You must maintain records of when you issue keys
and to whom, and when they are returned. These records must
be kept secure and separate from the actual keys. You must only
give keys to people providing you with satisfactory identification.
8g If access to a property is required by a person on behalf of the
buyer (e.g. a surveyor, builder, tradesman etc) and you hold
t
he key but are not able to accompany that person, this must
be made clear to the seller beforehand and his express
permission obtained before you hand over the key.
8h You must exercise reasonable diligence to ensure that, after
any visit by you, a property is left secure.
9. Offers
9a By law, you must tell sellers as soon as is reasonably possible
about all offers that you receive at any time until contracts
have been exchanged unless the offer is an amount or type
which the seller has specifically instructed you, in writing, not
to pass on. You must confirm each offer in writing to the seller,
and to the buyer who made it, within 2 working days.
9b You must keep a written or electronic contemporaneous
record of all offers you receive including the date and time of
such offers and the seller’s response.
9c By law you cannot make it a condition of passing on offers to
the seller that the person wanting to buy the property must
use services offered by you or another party. You must not
discriminate, or threaten to discriminate, against a
prospective buyer of the seller’s property because that person
declines to accept that you will (directly or indirectly) provide
related services to them. Discrimination includes but is not
limited to the following:
• Failing to tell the seller of an offer to buy the property.
• Telling the seller of an offer less quickly than other offers
you have received.
• Misrepresenting the nature of the offer or that of rival offers.
• Giving details of properties for sale first to those who have
indicated they are prepared to let you provide services to
them.
Continuation of Marketing
9d When an offer has been accepted subject to contract you must
take and confirm the seller’s instructions as to whether the
property should be withdrawn from the market, or continue
to be marketed. In the latter case, you must so advise the
prospective buyer in writing. The prospective buyer must also
be informed in writing should the seller later decide to put the
property back on the market. You remain under the legal
obligation to pass on offers, as defined in 9a above.
9e You must keep all prospective buyers who have recently made
offers through you, and which have not already been rejected,
informed of the existence of other offers submitted to the seller.
9f You must be fair and not misleading when disclosing the
amount of any offers made to other prospective buyers. Before
disclosing the amount of an offer, you must advise the seller
of such intention and get his agreement; and you must warn
all prospective buyers who make offers that it is your practice
to do so. If you do disclose any offer to one prospective buyer,
then all offers must be immediately disclosed to all prospective
buyers with a current interest in negotiations for the property.
9g After an offer has been accepted subject to contract, you must
promptly tell that prospective buyer if the seller accepts
another offer.
9h By law you must not misrepresent or invent the existence, or
any details, of any other offer made or the status of any other
person who has made an offer. If you know that the seller has
i
nstructed a legal representative to send a contract to an
alternative buyer, you must then tell your prospective buyer
in writing.
10. Financial Evaluation
10a At the time that an offer has been made and is being considered
by the seller, you must take reasonable steps to find out from
the prospective buyer the source and availability of his funds for
buying the property and pass this information to the seller. Such
information will include whether the prospective buyer needs to
sell a property, requires a mortgage, claims to be a cash buyer
(*) or any combination of these. Such relevant information that
is available should be included in the memorandum of sale
having regard to the provisions of the Data Protection Act 1998.
10b You must put all offers to your seller client even if the prospective
buyer has not been financially qualified at that stage.
10c These reasonable steps must continue after acceptance of the
offer until exchange of contracts and must include regular
monitoring of the prospective buyer’s progress in achieving
the funds required, and reporting such progress to the seller.
11. Deposits
In England, Wales and Northern Ireland
11a You should not take pre-contract deposits. However, in the
case of new home sales, you may take into account specific
instructions from sellers. If a deposit is taken, then a written
receipt must be given, and the circumstances under which the
deposit is held and any interest accrued are refundable, must
be clearly stated in writing.
11b You must not hold a deposit, or any other money belonging to
a seller or buyer client, unless you are covered by adequate
insurance.
11c Any client money held must by law be in a separate client
account or accounts, as set out in the Estate Agents (Accounts)
Regulations 1981. You must be able to account immediately for
all money you are holding on behalf of a client.
11d By law you must not deduct any cost or charges from any
client’s money you hold, unless your client has given you
written authority to do so. You should ensure that your client’s
authority is obtained at the time of the deduction or that you
give your client sufficient notice prior to the deduction to
object to it.
Code of Practice for Residential Estate Agents – page 6 of 8
12. Between Acceptance and Exchange of Contracts
12a After acceptance of the offer by the seller, and until exchange
of contracts you have no direct influence on such matters as
the conveyancing process or the mortgage lending process.
Your obligations to the seller are:
• to monitor progress;
• to assist where possible, as asked;
•
to report information deemed helpful to bringing the
transaction to fruition.
You must keep written or electronic records of such activity.
12b If a buyer becomes involved in a contract race, he should be
told promptly of the situation and given such information
which comes to your attention as is consistent with your duty
to the seller and the other buyer(s).
13. Exchange and Completion
13a After exchange of contracts you must not give the buyer the
keys to the property without the specific permission of the
seller or his legal representative.
13b At completion, you should offer to assist with the handover of
keys during your office working hours and maintain a record
of what has been agreed. If the seller so requests, you must
assist.
14. In-house Complaints Handling
14a You must maintain and operate an in-house complaints
procedure. Such procedures must be in writing; explain how
to complain to your business and to the Ombudsman; be
readily available in each office for consumers; and be available
for inspection by the Ombudsman and/or TPO Limited.
14b All verbal and written complaints must be recorded by you at
the time they are made.
14c You must agree to deal with any properly appointed
representative of a Complainant (*).
14d All written complaints must be acknowledged in writing within
3 working days and a proper investigation promptly
undertaken. A formal written outcome of your investigation
must be sent to the Complainant within 15 working days of
receipt of the original complaint. A senior member of staff not
directly involved in the transaction should deal with the
complaint. In exceptional cases, where the timescale needs
to be extended beyond this limit, the Complainant should be
kept fully informed and an explanation provided.
14e If the Complainant remains dissatisfied, he must be told how
he can further pursue his complaint within your business. This
should provide the opportunity for a speedy, separate and
detached review of the complaint by staff not directly involved
in the transaction. Such a review must be sent to the
Complainant within 15 working days.
14f Following the conclusion of your investigation, a written
statement of your final view, and including any offer made, must
be sent to the Complainant. This letter must also tell the
Complainant how the matter can be referred to the
Ombudsman, pointing out that any such referral by the
Complainant must be made within 12 months of your final view.
14g You must not imply that payment of any outstanding
commission fee or additional costs is a pre-condition of a
review by the Ombudsman.
15. Referrals to the Ombudsman
15a You must co-operate with any investigations by the
Ombudsman being conducted in accordance with his Terms
of Reference.
15b You must:
• comply with any award and/or direction made by the
O
mbudsman against you and accepted by the
Complainant and which is binding upon you under the
Terms of Reference; and
• pay the Complainant the amount of any such award if
accepted by the Complainant within the period for
payment required by the Ombudsman.
16. Compliance Monitoring/Compliance Surveys
16a You must comply with the requirements of any code
compliance monitoring or compliance survey procedure used
by TPO Limited.
16b You must seek consumers’ permission for their contact details
to be used in any monitoring /survey process to ensure
compliance with the Data Protection Act 1998.
17. Non-Compliance with the Code
17a Cases of non-compliance will be dealt with by the Disciplinary
and Standards Committee (DSC) of the TPO Council.
17b The DSC will consider those cases brought to its attention by
the Ombudsman, acting within his Terms of Reference, where
he considers there has been any single flagrant breach and/or
any persistent breaches of the Code by any Member Agent.
When considering such cases the DSC will also consider
whether the conduct is such that it raises issues concerning
the Member’s continuing registration under the Consumers,
Estate Agents and Redress Act 2007.
17c The DSC will also consider cases of non-compliance where
the monitoring process at 16 above shows any single flagrant
breach and/or any persistent breaches of the Code, failure to
complete monitoring or where it is considered that the
Member has brought the scheme into disrepute.
17d The DSC will determine any disciplinary action in accordance
with its terms of reference as defined from time to time.
17e Any Member issued with a warning or sanction has the right to
make a representation to the DSC and after the final decision
of that body, shall, if necessary have the right to put the matter
before an Appeals Committee made up of two independent
Council members (one of whom will act as Chair) and one
Board member. Such appeal must be made within 4 weeks of
the issue of the warning or sanction. Expulsion or suspension
from full TPO membership will not necessarily result in loss of
registration under either the Consumers, Estate Agents and
Redress Act 2007 or the Redress Schemes for Lettings Agency
Work and Property Management Work (Requirement to Belong
to a Scheme etc) (England) Order 2014.
Code of Practice for Residential Estate Agents – page 7 of 8
18. Glossary of Terms
In this Code, the following interpretations and definitions apply:
18a Aggressive Behaviour. Here are some illustrative examples
o
f aggressive behaviour or practices. It is not an exhaustive
list. In each case, the test is whether the average consumer’s
freedom of choice or conduct is (or would be likely to be)
impaired and, as a result, they take (or would be likely to take)
a different transactional decision. When you gain new clients
and instructions, when you market property, when you
n
egotiate and make sales.
• Imposing onerous or disproportionate requirements which
prevent a client from exercising rights to terminate an
agreement or switch to another property sales business.
• Refusing to allow a consumer to cancel their contract with
you, where a cancellation period applies and has not expired.
• Pressurising a potential buyer to use associated services,
for example to take out a mortgage through the in-house
mortgage advisor or to use a particular firm of solicitors
or licensed conveyancers.
• Pressurising (for example by persistent and/or aggressive
telephone calls) the buyer to act quickly to put in an offer,
raise their price, skip the survey, finalise the sale and/or
exchange contracts.
• In order to make commission quickly, pressurising a seller
client to accept an offer at a lower price than is reasonable
for their property, for example by telling them that they
cannot get a better offer.
• Pursuing commission to which you are not entitled.
• Intimidating, pressurising or coercing consumers into
dropping complaints against your business, for example
by the use of threatening or abusive when you deal with
complaints.
18b Associate. Includes a brother, sister, husband, wife, civil
partner, aunt, uncle, nephew, niece, parents, grandparents,
children and grandchildren. The definition also includes
business associates.
18c Average Consumer. The ‘average consumer’ is someone who
is reasonably well-informed, and reasonably observant and
circumspect. For example, an average consumer would pay
some attention to documentation given to them, but not
necessarily to the small print unless key points in it are
brought to their attention. An average consumer would check
out publicly available facts for themselves where this is
straightforward to do, although what checks they actually
make will be influenced by the information that you have given
them. The CPRs do, however, provide for where a commercial
practice is targeted at a particular group of consumers. In
these cases, the ‘average consumer’ will refer to the average
member of that group, not the average consumer generally.
This will be relevant to you if you are targeting your
commercial practice at a particular group of consumers.
18d Cash Buyer. A ‘cash buyer’ can only be described as such if
he has realisable cash assets, that is:
• he has sufficient cash in the bank, building society or other
investments, which can be realised in a reasonable time,
that is, it will be available by the estimated or proposed
exchange of contracts and completion dates; or
• he has actually sold a property, that he has exchanged
contracts and is expected to achieve completion on his
s
ale before exchange on his purchase and he does not
require a mortgage to make up any difference in the
purchase price of the new property.
18e Client. A person who has instructed you to sell or, for a fee,
to buy, a property on his or her behalf, in the United Kingdom
(including the Channel Islands and the Isle of Man). Where
appropriate, this definition includes a client’s properly
appointed representative.
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8f Customer. Customer refers to an actual or potential seller or
buyer.
18g Complainant. Someone who is an actual or potential seller or
buyer of residential property making a complaint against a
Member Agent. Where appropriate, this definition includes a
Complainant’s properly appointed representative.
18h Connected Person. Includes:
• Your employer or principal.
• Your employee or agent.
• Any associate including the term “business associate” as
defined within Sections 31 and 32 of the Estate Agents Act
1979.
18i Estate Agency Services. Things done by any person in the
course of a business (including a business in which he is
employed) pursuant to instructions received from a Consumer
(the “client”) who wishes to sell or buy any residential property
in the United Kingdom:
• for the purpose of, or with a view to, effecting the introduction
to the client of a third person who wishes to buy or, as the
case may be, sell such residential property; and
• after such an introduction has been effected in the course
of that business, for the purpose of securing the sale or,
as the case may be, the purchase of that property.
18j Event Fees. Fees connected with the sale of sheltered
housing and other events such as subletting.
18k Harass/Harassment. The Equality Act 2010 (Section 26)
defines harassment as:
Unwanted conduct related to disability, sex, gender
reassignment or race and which has the purpose or effect of:
• violating someone’s dignity;
• creating an intimidating, hostile, degrading, humiliating or
offensive environment for the service user.
Harassment also includes sexual harassment and less
favourable treatment of a service user because they submit
or reject sexual harassment, or to harassment related to sex
or gender reassignment.
Harassment because of someone’s sexual orientation or
religion would amount to unlawful direct discrimination and
is also prohibited under the Equality Act.
18l Material Information. In the most straightforward sales, the
material information that you should give to potential buyers
may be quite basic. Little more than the asking price, location,
number and size of rooms, and whether the property is freehold
or leasehold. However, depending on the circumstances of
each sale, material facts could include the length of the lease,
Code of Practice for Residential Estate Agents – page 8 of 8
the level of charges payable under a lease, uncertainties known
a
bout title, major structural defects, lack of connection to
mains services, etc. At the outset of the marketing process, you
are not expected to research issues that are outside your line
of business, for example, where your business is marketing
property and the issues are ones that a surveyor or conveyancer
would investigate. However, should you become aware of such
information later on, you cannot ignore or suppress it. If the
information is material, you will need to disclose it.
18m Member. An estate agent who is a Member of the TPO
voluntary scheme and who has undertaken to abide by all
p
rovisions of the Code of Practice.
18n Property or Residential Property. Means property (land
and/or buildings) used, last used, or to be used for residential
purposes.
18p Records. Means all written correspondence, file notes,
contracts and agreements in hard copy or electronic
communications including emails or faxes.
18q Transactional Decision. Informed decisions made by
consumers, which include:
• A decision to find out more about your services, or to rule
out using the services of one of your competitors.
• A client’s decision whether and on what terms to sign or
renew an agreement with you, or their decision to end an
agreement.
• A seller’s decision whether to put their property up for sale
or take it off the market, to accept or turn down an offer,
o
r to exchange on the sale or not
• A buyer’s decision whether to view an advertised property,
or whether and on what terms to make an offer on a
property, instruct a solicitor or licensed conveyancer,
commission a survey, apply for a mortgage, or exchange
on the purchase.
18r Written, in Writing. Includes typed or hand-written letters,
records or notes, emails and faxes. Electronic signatures are
acceptable.
18s You. Applies to all those Estate Agents bound by this Code,
and their staff providing estate agency services.
