Saturday, 30 March 2019 12:07

Client Money Protection / Property Redress Becomes Law

Rate this item
(0 votes)
Client Money Protection / Property Redress Becomes Law

As of 1st April, 2019 anyone managing a property for someone else needs to belong to a recognised property redress scheme.

 

The Regulations impose a mandatory requirement on property agents to join a government approved or designated client money protection scheme, with the additional requirement that the membership results in the level of compensation available being at least the level of client money held. There are also transparency requirements for property agents, who must display a certificate confirming membership (in its premises) and publish the certificate on its website. The agent must also notify all clients of its membership.

The enforcement of the Regulations will be the responsibility of local authorities in England, with financial penalties of up to £30,000 for breaches of the membership requirement and up to £5,000 for breaches of the transparency requirements.

Although ordinarily only one financial penalty may be imposed for the same breach, a continuous breach may be subject to another financial penalty 28 days after the imposition of the previous penalty.

We thank member and friend, John Saulet of Saulet Townsend Limited for sharing this information.  We would advise all members who collect any money on behalf of others to take legal advice if they are not a member of a redress scheme already, as they may need to do so.

End Notes

facebook-logoFollow us on Facebook to get news updates 'as they happen' rather than waiting for the monthly summary: www.facebook.com/pdpla

Better still, post news or comment as it happens and keep everyone one else up to date. Also, catch up on previous issues of this newsletter and a wide range of other items on our website www.pdpla.com

Content is copied from multiple sources – thanks to original authors for generating and apologies for any errors we have generated. Please let us know of any newsworthy items or areas you'd like to know more:       newsletters@pdpla.com

We use cookies to improve our website and your experience when using it. Cookies used for the site's essential operation have already been set.   See our Privacy Policy.