UK House Buyers as part of The Property Ombudsman Scheme
We cover all the essential information about The Property Ombudsman and how they safeguard you as a consumer selling a property - particularly to a fast house buying company
If you browse through property buying company websites like ours, you may come across a dark blue logo with a white triangle and the words “The Property Ombudsman”. But what does this signify? It indicates that the members are part of an Ombudsman that provides a free, impartial, and independent service for resolving disputes. However, it is crucial to verify their membership, as we will discuss in more detail later on.
To learn everything about The Property Ombudsman and their role in protecting you as a consumer, especially when using a rapid home selling service, you can explore the specific section of interest highlighted below:
About The Property Ombudsman
The Property Ombudsman scheme has been in operation since 1990, offering consumers and property agents a service for resolving disputes, aiming at a fair and conclusive settlement for claims raised by either party.
The Property Ombudsman, also known as TPO, is a non-profit organization governed by a board of 9 non-executive directors, including an independent chair. This government-endorsed scheme is in place to mediate disputes between property agents and consumers; however, it does not have regulatory powers to enforce legal actions or fines. Nevertheless, it does provide compensation awards.
TPO is a fully-fledged member of the Ombudsman Association, adhering to its Service Standards Framework, forming the basis for the codes of practice. In addition, it is endorsed by the Chartered Trading Standards Institute under ADR Regulations 2015.
What are their codes of practice?
TPO encompasses codes of practice spanning various property sectors, including residential letting agents, residential estate agents, commercial & business agents, and entities like ours falling under the residential property buying companies' code of practice.
The codes of practice are categorized into several sub-sections, outlining key points under each category, summarizing some aspects:
General provisions
As a member, adherence to codes of practice and relevant laws is mandatory.
All staff must be well-informed about the code's details and their obligations.
Service delivery should align with best practices, integrity, and fairness, void of deceitful, dishonest, or manipulative actions.
Customers must be treated equitably.
Special attention should be given when dealing with disadvantaged customers.
Confidential information should be used solely for the intended consumer purpose.
Comprehensive written transaction records must be retained for six years.
Avoid actions that damage the scheme's reputation.
Duty of care and conflict of interest
Sufficient information should be provided to meet the client's needs and objectives.
All involved parties in a transaction should be treated with fairness and respect.
Early detection and mitigation of any conflict of interest are vital.
Disclosure of any relationships with recommended services or financial arrangements must be made.
Customer requirements take precedence.
Any information affecting property value or saleability must be disclosed.
Advertising for new business
Fair and transparent practices must be employed when seeking new customers.
Clearly present fees inclusive of VAT.
Independent decisions should be made without unfairly targeting competitors when advertising fees, costs, or promotions.
Thoroughly explain the valuation, offer, and purchasing process to the client.
Avoid misrepresentation of services.
Accurate representation of sale process timescales without setting unrealistic expectations.
No misleading statements on price, payment methods, property valuation, or using coercive methods.
Avoid pressurizing individuals to sell directly or indirectly.
Promptly comply if a customer requests to cease communications.
Offers
Notify the client of TPO membership status upon submitting an offer.
Comply with Consumer Protection regulations and conduct valuations fairly.
Ensure transparency in offer status, including any valuation conditions.
Put all additional fees, restrictions, liabilities, and charges in writing.
Promptly notify the seller of any offer revisions or changes to agreements.
Avoid late and unjustified price reductions during the selling process.
Terms of business must adhere to the code and Consumer Rights Act guidelines.
Clearly written terms in plain language are necessary.
Maintain detailed records of all offers.
Purchase – Time between acceptance and contract exchange
Prohibit transferring purchases to third parties without client consent.
Inform sellers of their right to utilize personal advisors freely.
Update all involved parties on sale progression.
Strive to meet the client's preferred sale schedule.
Ensure purchase funds with the solicitor before the agreed completion date.
Fees, charges & client liability
Detail all fees and additional costs in business terms.
Transparently communicate any fees related to sale termination.
Explain tie-in agreements clearly, including costs to the client.
In-house complaints handling
Establish and follow an internal complaints procedure.
Agree to deal with appointed representatives for complaints.
Acknowledge written complaints within 3 working days.
Provide dissatisfied complainants with further escalation options.
Communicate final views and any offers in writing post-complaint resolution.
Referral to Ombudsman
Cooperate with Ombudsman investigations.
Comply with Ombudsman decisions and promptly pay awarded amounts.
Non-compliance with the code
The complaints committee determines disciplinary sanctions as per the terms.
Compliance monitoring
Furefill all compliance monitoring requirements in the code.
Inform customers of potential data use for monitoring purposes to comply with GDPR.
Am I protected if I sell to a TPO member?
Yes, you receive enhanced protection compared to non-members.
The Property Ombudsman lacks the authority to enforce fines on members but can impose disciplinary actions, potentially leading to expulsion. Being expelled from a reputable Ombudsman could significantly harm a brand's reputation and future customer relationships.
Members' compliance with the codes ensures fair treatment and impartial redress for customers, something non-member entities cannot provide.
Hence, it is advisable to engage with Ombudsman members when considering property sales.
How to confirm a company's TPO membership?
If a company showcases the TPO logo but you doubt their membership, utilize the "Find a TPO Member" tool on their website for verification. If the company is not listed, promptly inform the Ombudsman for corrective measures against deceptive entities.
How to lodge a complaint
Before approaching The Property Ombudsman directly, attempt to resolve issues with the agent internally as per the in-house complaints procedure outlined. This approach allows the agent to rectify issues internally. If still dissatisfied after their attempt at resolution, escalate the matter to the Ombudsman by following the agent's stipulated complaint resolution process.
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