Code of Practice for

Residential Estate Agents

(England, Wales and Northern Ireland)
Effective from 1 June 2019

The Property Ombudsman

Milford House, 43-55 Milford Street, Salisbury, Wiltshire SP1 2BP
Complaints Enquiries: 01722 333 306 Email: [email protected]
Membership Enquiries: 01722 335 458 Email: [email protected]
[email protected]
[email protected]

@TPOmb facebook.com/PropertyOmbudsman www.tpos.co.uk

TPOE27-8

Registered Office: The Property Ombudsman Limited, Milford House, 43-55 Milford Street, Salisbury, Wiltshire SP1 2BP.
Registered in England: 3339975.
This Code of Practice is mandatory for all Property Ombudsman (TPO) All references to the singular include the plural.

Members who are entitled to display the above TPO and ‘Approved Code’ Terms marked (*) - the first time they appear are defined in a Glossary of Terms at Section 18.
All references to ‘sellers’ include potential sellers.
logos and who engage in estate agency work in England, Wales and
All references to ‘buyers’ include potential buyers and viewers.
Northern Ireland. Copies of this Code of Practice and the TPO Consumer
Guide should be made available to consumers. You should prominently 1. General Provisions
display the logos in the window of all your offices, your website(s), your Applicability
letterheads (including emails and other digital communications) and 1a This Code applies to estate agency work (*) in England, Wales and Northern Ireland
undertaken by a person or organisation who has agreed or is required to comply with it
your marketing material. 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 and
This Code comprises of two elements: the Channel Islands are covered by separate Codes of Practice.
• Best Practice - standards set above the minimum level required by law.
General Obligations
• Legal Obligations - standards set by law.
1b You (*) must comply with this Code of Practice. You must comply with all laws (as
TPO Members are expected to conduct their business practices in-line with both elements of amended, re-enacted or substituted with or without modification from time to time)
the Code, as such, the Code intentionally does not differentiate between the two elements. In relating to residential estate agency and in particular the Estate Agents Act 1979, the
line with the Ombudsman’s Terms of Reference, TPO can consider complaints raised by Consumers, Estate Agents and Redress Act 2007, the General Data Protection Regulation
consumers against TPO Members against these obligations. (or any successor legislation), Competition Act 1998, the Consumer Protection from
Note: TPO is not authorised to take enforcement action or make decisions on potential breaches Unfair Trading Regulations 2008 (CPRs), Business Protection from Misleading Marketing
of legislation. Where potential breaches or criminal activity is found by TPO, we will report the Regulations 2008 (BPRs), Consumer Contracts (Information, Cancellation and Additional
matter to the appropriate authority. Local Trading Standards (and/or appointed lead enforcement Charges) Regulations 2013, Consumer Rights Act 2015, Energy Act 2011 (Green Deal)
authority) are responsible for enforcement of legislation and regulations. The Courts are and all other current and relevant primary or secondary legislation.
empowered to determine whether legal obligations have been met. References made to 1c You must register with the appropriate authority in accordance with the Money
legislation and regulations within this Code are made for information and education purposes. Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer)
Regulations 2017.
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 estate agency work, the law of contract, and all relevant
Contents:
estate agency legislation; and familiarity with the basic conveyancing and mortgage
1. General Provisions 10. Financial Evaluation application processes.
2. Duty of Care and Conflict of Interest 11. Deposits 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 dishonest,
3. Advertising for New Business 12. Between Acceptance and
deceitful, manipulative or involve misrepresentation. You must avoid any course of action
(Canvassing) Exchange of Contracts
that can be construed as aggressive behaviour (*) or harassment (*).
4. Market Appraisal 13. Exchange and Completion
1f You must treat consumers equally regardless of their race, religion or belief, sex, sexual
5. Instructions, Terms of Business, 14. In-house Complaints Handling orientation, gender recognition, disability, pregnancy or maternity, or nationality.
Commission and Termination Unlawful discrimination includes giving less favourable treatment because someone is
15. Referrals to the Ombudsman
6. Energy Performance Certificates perceived to have one of these personal characteristics or because they are associated
16. Compliance Monitoring with a person with such a characteristic.
7. Marketing and Advertising
17. Non-Compliance with the Code 1g You should take special care when dealing with consumers who might be disadvantaged
8. Viewing and Access to Premises because of factors such as their age, infirmity, lack of knowledge, lack of linguistic or
18. Glossary of Terms
9. Offers numeracy ability, economic circumstances, bereavement or do not speak English as
their first language.
1h You must not release or use confidential information for any purpose other than that 2f You must by law3 tell the seller if you intend to offer buyers surveying, financial,
for which it was given by consumers (*) during the process of selling or buying investment, insurance, conveyancing or other services or those of an associate or
residential property without the consumer’s permission, unless legally required to do connected person in connection with that purchase, before the seller has committed
so. Personal data should be processed in line with data protection legislation and your any liability to you. Thereafter, you must inform the client in writing or in the
business’s privacy notice1 (*). memorandum of sale, as soon as reasonably possible after you find out that a buyer,
who has made an offer, has applied to use one or more of these services in connection
1i Save where you are required to delete such records sooner under applicable law, you
with that purchase.
must keep clear and full written (*) records (*) of all transactions for a period of 6 years
and produce them when required by the Ombudsman and/or any enforcement authority, 2g If your firm is instructed to sell a property and you, an employee or an associate (or an
such as Trading Standards. 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
1j As a TPO Member (*) you must not take, or be involved in any action which would bring
possible to the seller’s representative.
the scheme into disrepute.
2h If you, an employee or an associate is intending to buy a property which your firm is
Publicity instructed to sell, that person must take no further direct part in the sale of that property
1k In accordance with the Alternative Dispute Resolution for Consumer Disputes on behalf of your business.
(Competent Authorities and Information) Regulations 2015, you must include TPO’s 2i If you are selling a property that is owned by you, an employee or an associate (or an
name and website address on your website, within your terms of business and within associate of an employee) or in which you, an employee (or an associate of an employee)
any other sales or service contract you agree with a consumer. has an interest, you must by law, before negotiations begin, immediately make this
1l You must use and display material promoting the Code of Practice as provided by TPO. known, in writing. The person who is selling should not participate in the direct sale of
You must prominently display the TPO logo in the window of all your offices, your the property.
website(s), your letterheads (including emails and other digital communications) and
your marketing material (including advertisements). 3. Advertising for New Business (Canvassing)
1m You must have available, free of charge, copies of this Code of Practice and Consumer 3a You must not use unfair methods when seeking new business. Advertising material
Guide to give to consumers in all your offices. should be in accordance with the Advertising Standards Authority’s (ASA) Codes and
must be truthful, not misleading and fully explain who the message is from, its purposes
2. Duty of Care and Conflict of Interest and how the consumer’s interest can be followed up.
2a You must treat all those involved in the proposed sale or purchase including sellers and 3b In your canvassing material, if you seek to use a property you have recently sold and where
buyers fairly and with courtesy. completion has occurred, you must obtain the new owner’s prior permission in writing.
2b When instructed, your duty of care is to the client (*). You must offer suitable advice to 3c Fees must be shown inclusive of VAT alongside a statement confirming that VAT is included.
meet the client’s aims and needs. Where the law and the interests of the client conflicts, 3d If a consumer is interested in using your services, you must draw to their attention, and
adherence to the law must prevail. explain before they are committed to another contract, the potential of paying fees to
2c You must avoid any conflict of interest. You must disclose at the earliest opportunity in more than one agent where another agent has been previously instructed.
writing (*) to consumers or any relevant third party any existing conflict of interest, or 3e You must take decisions on the content of your advertisements independent of your
any circumstances which might give rise to a conflict of interest. competitors, such as how you advertise your fees, charges or any additional costs, or
2d If you intend to offer or recommend to consumers surveying, financial, investment, any special offers, discounts or other value offering.
insurance, conveyancing or other services, or those of an associate (*) or connected 3f You must act promptly if a consumer asks you to stop canvassing them.
person (*), where the service provider rewards you for the referral by way of money,
gifts or any other form of benefit, you must disclose this arrangement to consumers in
accordance with the National Trading Standards Estate Agency Team’s ‘Guidance On 4. Market Appraisal
Transparency of Fees Involving Property Sales’2. 4a When you give advice to someone selling their property, that advice must be in the
2e Consumer requirements are key and this applies to the buyer as well as the seller. You consumer’s best interests and within the law. The potential benefits and disadvantages
should complete a consumer fact find to ensure that any specific requirements are of any recommended method of sale must be explained in clear terms and take into
taken into consideration. account consumer (*) requirements as outlined in paragraph 2e.

1
https://ico.org.uk/for-organisations/resources-and-support/
2 3
https://en.powys.gov.uk/article/3989/Business-Information-NTSEAT http://www.legislation.gov.uk/uksi/1991/859/contents/made
4b Any figure you advise, either as a recommended asking price or as a possible selling Fair Contracts
price must be given in good faith and must reflect available information about the 5h Your Terms of Business and your contract must be consistent with the provisions of this
property and current market conditions and must be supported by comparable evidence. Code of Practice and comply with Part 2 of the Consumer Rights Act 2015.
You must never deliberately misrepresent the market value of a property.
5i Your Terms of Business should be written in plain and intelligible language. In particular
4c Any evidence relating to comparables of similar properties in a similar location must you must use in your Terms of Business the specific definitions in the Estate Agents
be retained on file for future reference. (Provision of Information) Regulations 1991. You must take particular care for example
4d You must keep your marketing strategy under regular review with your client. 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
4e For leasehold, commonhold or managed freehold properties you should make the seller full, display them prominently and clearly explain the implications of the terms to your
aware that they should contact their lease administrator, commonhold association, or client, especially where multiple definitions are used.
freehold manager to obtain material information required by potential buyers, as set out
in paragraph 7k. Fees and Charges
5j All fees and additional costs must be included in your Terms of Business. They must be
5. Instructions, Terms of Business, Commission and Termination fully explained, clearly and unambiguously stated in writing, along with an explanation
of the specific circumstances in which those fees and costs will become due, before the
Instruction client is committed to the contract.
5a You must, at the point of instruction, inform your client in writing that you are a Member
5k Where the fee is a percentage it must be quoted inclusive of VAT. The example amount
of TPO and subscribe to this Code of Practice.
should be based on the asking price. However, you must make it clear that, should the
5b You must not directly or indirectly harass (*) any person in order to gain instructions, nor selling price be higher or lower than the asking price, your commission fee will be
must you repeatedly try to gain instructions in a way likely to cause offence. correspondingly higher or lower.
5c You must not instruct other agencies to assist you in selling a property without the 5l Where you charge a fixed fee you must state the actual amount payable inclusive of VAT
seller’s permission. If the seller gives permission, as the instructing agent, you are liable in the contract and ensure that the client understands that the fee will not vary whatever
at law for the actions of the sub-instructed agent and will be held responsible for any the sale price.
failures to comply with this Code of Practice by that sub-instructed agent even if that
5m Except for any previously agreed additional costs, commission fees will become due on
sub-agent is not a TPO Member.
exchange of contracts.
5d Notwithstanding paragraph 5c if you are instructed as a sub-agent or share listings via
5n Where your Terms of Business include options for sellers to use associated and/or
a website, you must continue to act in accordance with all relevant provisions of this
recommended services (such as conveyancing), sellers should be presented with the
Code of Practice.
opportunity to actively opt-in to use the service. Requiring sellers to actively opt-out of
5e You should take reasonable steps to satisfy yourself that the seller is entitled to instruct any additional or recommended service should be avoided. Charges made for not using
you (such as obtaining title information from the Land Registry; declaration of trust; a service must be disclosed in accordance with the National Trading Standards Estate
deed of variation; power of attorney) and to sign on behalf of all co-sellers. Agency Team’s ‘Guidance On Transparency of Fees Involving Property Sales’4.
5f In accordance with the Money Laundering, Terrorist Financing and Transfer of Funds 5o In the circumstances where a buyer may become liable for your fees, this liability must
(Information on the Payer) Regulations 2017, you must undertake Customer Due Diligence be communicated at the earliest opportunity such that in all forms of media, the
(*) and, where appropriate Enhanced Due Diligence (*), on the seller before you establish property asking price is accompanied by a statement that ‘buyer’s fees apply’ and that
a business relationship. Should you have suspicion, knowledge or reasonable ground to websites allow for a click-through to an information pack and FAQs. Appropriate
suspect that money laundering is taking place, you must report this in accordance with arrangements should be made to provide the same information where non-electronic
your money laundering policy and procedures. You must keep records of your Customer access is present. The information pack should have ‘key features’ of the approach as
Due Diligence checks for five years from the date of the transaction. 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
Signing amount may be considered as part of the chargeable consideration for the property and
5g You must give your client written confirmation of their instruction for you to act in the be included in the calculation for stamp duty land tax liability.
buying or selling of property on their behalf. You must by law give the client written
details of your Terms of Business including your fees and charges before they are
committed or have any liability towards you. You must sign and date your Terms of
Business before they are given to your client. The client must be given sufficient time
to read them before signing and agreeing to instruct you (refer also to paragraph 5p).
The client should be given a copy, signed by both parties, to retain. 4
https://en.powys.gov.uk/article/3989/Business-Information-NTSEAT
Duration and Termination 5u At the time of the termination of the instruction, you must explain clearly in writing any
5p Your Terms of Business must clearly state the minimum duration of your instruction, continuing liability the client may have to pay you a commission fee and any circumstances
and how it can be terminated by either party. When a contract is signed by a client during in which the client may otherwise have to pay more than one commission fee. Your
a visit by you to their home, at their place of work, away from your premises or online, explanation must include a list of parties that you have introduced to the property.
then they must be given a right to cancel that contract within 14 calendar days after the 5v Your action in pursuing a commission fee or additional charges must be proportionate
day of signing. The client should be given a ‘Notice of Right to Cancel’. Where the client
and reasonable and not intimidatory.
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 5w Although nothing precludes you taking court action to pursue payment of your
during this cancellation period you must obtain the client’s agreement in writing to commission account, it is generally expected that you will not take court action when a
those specific costs before work commences. complainant has referred the matter to the Ombudsman. If however you do pursue
5q If you intend to charge the client a fee or recover costs for terminating the instruction, payment of your commission fee through the courts you must agree to the Ombudsman
you must make this clear in your Terms of Business and specify the amount of the fee considering any outstanding service-related complaints after the court action has been
and additional costs and their purpose. Fees and costs should reasonably reflect the determined.
activity undertaken and not include a penalty charge.
Subsequent Changes
5r On receipt of the client’s instruction (includes executor, trustee, person holding power
of attorney), or on your own decision, to terminate your instruction, you must promptly 5x Any subsequent changes to the Terms of Business must be:
give the client written confirmation that you are no longer acting for them, confirm the • Mutually agreed by you and your client.
actual date of termination, and give details of any fees or additional costs the client
owes you (see 5u below). • Promptly confirmed in writing.

5s Your contract must allow for the required notice of termination to be given before the • Where appropriate, contained in a new Terms of Business signed and dated by your
end of the term, such that termination by the client can occur at the expiry of the client.
minimum term.
6. Energy Performance Certificates
Fee Entitlement and Client Liability
5t At the time of receiving instructions from a seller you must: 6a The relevant provisions set out in Section 5 should be followed when entering into an
agreement with a seller for the supply of an Energy Performance Certificate (EPC) in
• point out and explain clearly in your written Terms of Business that you may be entitled
relation to the property to be marketed.
to a commission fee if that seller terminates your instruction and a memorandum of
sale is issued by another agent to a buyer that you have introduced (see definition of 6b You must provide adequate information to the seller to enable the seller to understand
effective introduction (*) and supplementary TPO ‘Dual Fee’ guidance) within 6 months the basic legal requirement for and content of an EPC, and use in relation to the
of the date your instruction ended and where a subsequent exchange of contracts marketing of the property.
takes place.
6c You must advise the seller in writing of all charges relating to the supply of an EPC and
If no other estate agent is involved this time limit extends to 2 years. the terms of payment.
• advise that the seller may be liable to pay more than one fee if they instruct another
agent during or after the period of your agency. 7. Marketing and Advertising
• ask the seller if they have previously instructed another agent in respect of the
7a You must not put any property on the market for sale without permission from the seller
property, and if advised yes:
and without a valid EPC compiled in accordance with the relevant legislation or evidence
• ask to see a copy of the previous agency agreement to ensure that by instructing that a valid EPC has been commissioned. If a buyer requests a copy of an EPC, this
you, the seller will not be in breach of contract (note that if the seller is unable or must be provided free of charge.
refuses to supply a copy, you must advise, in writing, that you are unable to advise
as to whether the seller is in breach of their agreement with the previous agent); For Sale Boards
• specifically advise of the possible liability to pay more than one agent; 7b You must not erect any form of estate agency board at a property unless you have been
• establish if an interested party has previously viewed through another agent; instructed to market that property.
• if an interested party has previously viewed through another agent and makes an 7c You can only erect an estate agency board with the specific permission of the seller.
offer through you, you must disclose this information and refer the sale back to Where the property is leasehold or commonhold, you should advise the seller to check
that agent as they will be deemed to have introduced the buyer (please refer to for any restrictions within their lease or commonhold community statement and obtain
supplementary TPO ‘Dual Fee’ guidance). their response before erecting the board.
7d Any board you do erect must be appropriate. • Approximate total amount of reserve fund;
7e When you put up a board you must by law comply with the appropriate regulations. You • Details of any event-related fees and charges payable under the lease that are
must accept liability for any claim arising under these regulations in connection with triggered by certain circumstances or events;
the board. • Details of any other fees / charges contained in the lease, commonhold community
7f If your board relates to part of a building in multiple occupation, it should indicate the statement or title deeds.
part of the building to which it relates. For all properties, material information would include, but is not limited to the following;
7g You must not replace another agent’s board with your own, hide it or remove it from a • Details of any unusual restrictions or covenants affecting the use and enjoyment of
property, without the seller’s permission or without notifying the other agent. the property.
7h You must comply with local legislation in relation to erecting your boards. You must take all reasonable precautions and exercise all due diligence by asking the
seller to declare such information in writing (see paragraph 4e and/or via the completion
Published Material and Information about a Property
of a property information questionnaire signed by the seller). Where you have doubt or
7i You must by law comply with the Consumer Protection from Unfair Trading Regulations information is missing you should ask further relevant questions of the seller. If all
2008 (or the Business Protection from Misleading Marketing Regulations 2008 where reasonable enquiries with the seller have been carried out and certain information is
applicable). The Consumer Protection from Unfair Trading Regulations 2008 require you still unavailable, the fact that the information is unknown should be clearly disclosed
to disclose any information of which you are aware or should be aware of in relation to to buyers, to enable them to make an informed transactional decision.
the property in a clear, intelligible and timely fashion and to take all reasonable steps
to ensure that all statements that you make about a property, whether oral, pictorial or 7l In regard to properties being re-sold with existing building warranties, you should ask
written, are accurate and are not misleading. All material information (*) must be the seller to declare in writing (for example via the completion of a property information
disclosed and there must be no material omissions which may impact on the average questionnaire signed by the seller) the remaining length of the warranty and whether
consumer’s (*) transactional decision (*). Where information is given to consumers any claim has been made against the policy. This information should be made available
and/or their representatives, it must be accurate and not misleading. to buyers to enable them to make an informed transactional decision.

7j Prior to commencement of marketing, the written details of a property (sales 7m You will be liable if you include anything in the sales particulars which you have reason
particulars) must be agreed with the seller to confirm that the details are accurate. to doubt is correct.
Sales particulars that have not been agreed by the seller must be marked as ‘draft’, 7n All advertisements must be legal, decent, honest and truthful in accordance with the
‘subject to approval’ or similar to ensure buyers are aware that the property details ASA Codes. Manipulating internet portals (and other channels of marketing) to give the
could be subject to change. impression a property is new to the market, when it is not; inflating your market share
7k In accordance with paragraph 5e, where the title is registered at HM Land Registry, you by listing properties multiple times; listing properties that are not currently available to
should seek to obtain title information to verify the tenure of the property. buy; or claiming to have sold a property which was sold by another agent, is misleading.
• In regard to leasehold properties, in accordance with paragraph 4e, you must provide 7o If you intend to include material produced by a third party, you must obtain that party’s
material information to the consumer so they can make an informed transactional permission to do so prior to the commencement of marketing.
decision. Material information in respect of the lease includes, but is not limited to,
the following: 8. Viewing and Access to Premises
• Number of years remaining on the lease;
Viewings
• Amount of ground rent (*) and when payable, together with details of how this will
8a You must take a seller’s instructions regarding viewings, specifically whether or not they
increase over time, if applicable;
should be conducted by you.
• Rent payable in the case of a shared ownership arrangement;
8b You must record any viewings that have been arranged for that property, feedback from
For leasehold, commonhold and freehold properties where the owner has a legal those viewings and pass this to the seller within an agreed timescale. If this feedback
obligation to contribute towards the maintenance costs of a shared amenity, material is an offer, you should refer to section 9.
information would include, but is not limited to the following:
8c Before arranging any viewing, you must tell the buyer if you are aware of an offer that
• Amount of service charge (*), and when payable; has already been accepted subject to contract by the seller.
• Amount of any event fees (*), and when payable; 8d In accordance with paragraph 5t, when you know the property has been, or is being
• Amount of reserve fund (*) contribution and when payable (if not already included marketed by another agent you should establish if your buyer has previously viewed the
in other charges); property through that or any other agent.
Access to Premises or continue to be marketed. In the latter case, you must advise the buyer in writing and
8e Unless otherwise instructed by the seller, if you hold the keys to a property you must ensure your marketing clearly explains that an offer has been accepted subject to
accompany any viewings of that property. If you are arranging for someone to view an contract. The buyer must also be informed in writing should the seller later decide to
occupied property, you must agree the arrangements with the occupier (including any put the property back on the market. You remain under the legal obligation to pass on
tenants) beforehand, wherever possible. offers, as defined in 9a.
8f You must make sure that all the keys you have are coded and kept secure. You must 9f You must keep all buyers who have recently made offers through you, and which have
maintain records of when you issue keys and to whom, and when they are returned. not already been rejected, informed of the existence of other offers you have submitted
These records must be kept secure and separate from the actual keys. You must only to the seller.
give keys to people providing you with satisfactory identification.
9g You must be fair and not misleading when disclosing the amount of any offers made to
8g If access to a property is required by a person on behalf of the buyer (e.g. a surveyor, other buyers. Before disclosing the amount of an offer, you must advise the seller of
builder, tradesman etc) and you hold the key but are not able to accompany that person, such intention and get the seller’s agreement; and you must warn all buyers who make
this must be made clear to the seller beforehand and the seller’s express permission offers that it is your practice to do so. If you do disclose any offer to one buyer, then all
obtained before you hand over the key. offers must be immediately disclosed to all buyers with a current interest in negotiations
8h You must exercise reasonable diligence to ensure that, after any visit by you, a property for the property.
is left secure. 9h After an offer has been accepted subject to contract, you must promptly tell that buyer
if the seller accepts another offer.
9. Offers 9i By law you must not misrepresent or invent the existence, or any details, of any other
9a By law, you must tell sellers as soon as is reasonably possible about all offers that you offer made or the status of any other person who has made an offer. If you know that
receive at any time until contracts have been exchanged unless the offer is an amount the seller has instructed a legal representative to send a contract to an alternative buyer,
or type which the seller has specifically instructed you, in writing, not to pass on. You you must then tell your buyer in writing.
must confirm each offer in writing to the seller, and to the buyer who made it, within 2
working days.
10. Financial Evaluation
9b In accordance with the Money Laundering, Terrorist Financing and Transfer of Funds
(Information on the Payer) Regulations 2017, you must undertake Customer Due Diligence 10a At the time that an offer has been made and is being considered by the seller, you must
and, where appropriate Enhanced Due Diligence, on the buyer before a binding contract has take reasonable steps to find out from the buyer the source and availability of their funds
been entered into (for example, exchange of contracts). Should you have suspicion, for buying the property and pass this information to the seller. Such information will
knowledge or reasonable ground to suspect that money laundering is taking place, you must include whether the buyer needs to sell a property, requires a mortgage, claims to be
report this in accordance with your money laundering policy and procedures. You must keep a cash buyer (*) or any combination of these. Such relevant information that is available
records of your Customer Due Diligence checks for five years from the date of the transaction. should be included in the memorandum of sale having regard to data protection laws.
9c You must keep a written or electronic contemporaneous record of all offers you receive 10b You must put all offers to your seller client even if the buyer has not been financially
including the date and time of such offers and the seller’s response. qualified at that stage.
9d By law you cannot make it a condition of passing on offers to the seller that the buyer 10c These reasonable steps must continue after acceptance of the offer until exchange of
must use services offered by you or another party. You must not discriminate, or contracts and must include regular monitoring of the buyer’s progress in achieving the
threaten to discriminate, against a buyer because that person declines to accept that funds required, and reporting such progress to the seller.
you will (directly or indirectly) provide related services to them. Discrimination includes
but is not limited to the following:
11. Deposits
• Failing to tell the seller of an offer to buy the property.
11a Unless the buyer and seller wish to utilise a reservation agreement, you should not
• Telling the seller of an offer less quickly than other offers you have received. generally facilitate pre-contract deposits. However, if you are instructed to do so, you
• Misrepresenting the nature of the offer or that of rival offers. must ensure that before a deposit is taken, the circumstances under which the deposit
is to be held, refunded, forfeited or used towards the purchase, are clearly stated in
• Giving details of properties for sale first to buyers who have indicated they are
writing, agreed by the relevant parties and a copy of the agreement provided to those
prepared to let you provide services to them.
parties. In each circumstance the beneficiary of the deposit (and any interest accrued)
Continuation of Marketing must be clearly defined.
9e When an offer has been accepted subject to contract you must take and confirm the 11b You must not hold a deposit, or any other money belonging to a seller or buyer, unless
seller’s instructions as to whether the property should be withdrawn from the market, you are covered by adequate insurance.
11c Any client money held must by law be in a separate client account or accounts, as set complaint. A senior member of staff, or designated complaint handler, not directly
out in the Estate Agents (Accounts) Regulations 1981. You must be able to account involved in the transaction should deal with the complaint. In exceptional cases, where
immediately for all money you are holding on behalf of a seller or buyer. the timescale needs to be extended beyond this limit, the Complainant should be kept
fully informed and an explanation provided.
11d By law you must not deduct any cost or charges from any money you hold, unless your
client has given you written authority to do so. You should ensure that your client’s 14e If the Complainant remains dissatisfied, the Complainant must be told how the complaint
authority is obtained at the time of the deduction or that you give your client sufficient can be further pursued within your business. This should provide the opportunity for a
notice prior to the deduction to object to it. 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.
12. Between Acceptance and Exchange of Contracts 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
12a After acceptance of the offer by the seller, and until exchange of contracts you have no
the Complainant how the matter can be referred to the Ombudsman, pointing out that
direct influence on such matters as the conveyancing process or the mortgage lending
any such referral by the Complainant must be made within 12 months of your final view.
process. Your obligations to the client are:
14g You must not imply that payment of any outstanding commission fee or additional costs
• to monitor progress;
is a condition of a review by the Ombudsman.
• to assist where possible, as asked;
• to report information deemed helpful to bringing the transaction to fruition; 15. Referrals to the Ombudsman
• where there is a chain, routinely check the immediate transactions and communicate 15a You must co-operate with any investigations by the Ombudsman being conducted in
information helpful to bringing your client’s transaction to fruition. accordance with the Ombudsman’s Terms of Reference.
You must keep written or electronic records of such activity. 15b You must:
12b If a buyer becomes involved in a contract race, the buyer should be told promptly of the • comply with any award and/or direction made by the Ombudsman against you and
situation and given such information which comes to your attention as is consistent accepted by the Complainant and which is binding upon you under the Terms of
with your duty to the seller and the other buyer(s). Reference; and
• pay the Complainant the amount of any such award if accepted by the Complainant
13. Exchange and Completion within the period for payment required by the Ombudsman.
13a After exchange of contracts you must not give the buyer the keys to the property without
the specific permission of the seller or the seller’s legal representative. 16. Compliance Monitoring
13b Where you become aware that the seller must contractually vacate the property by a 16a You must comply with the requirements of any code compliance monitoring or compliance
specific time on the day of completion, this should be conveyed to the seller at the survey procedure used by TPO Limited.
earliest possible opportunity. 16b You must inform consumers that their contact details may be used in any
13c At completion, you should offer to assist with the handover of keys during your office monitoring/survey process in order to ensure compliance with data protection
working hours and maintain a record of what has been agreed. If the seller so requests, legislation (in particular, the General Data Protection Regulation or any successor
you must assist. legislation). You must also inform consumers of the lawful basis of such processing,
which might be, for example, that the processing is necessary for the purposes of your
legitimate business interests.
14. In-house Complaints Handling
14a You must maintain and operate an in-house complaints procedure. Such procedures 17. Non-Compliance with the Code
must be in writing; explain how to complain to your business and to the Ombudsman;
be readily available in each office and on your website; and be available for inspection 17a Cases of non-compliance will be dealt with by the Compliance Committee (CC) of the
by the Ombudsman and/or TPO Limited. TPO Board.

14b All verbal and written complaints must be recorded by you at the time they are made. 17b The CC will consider those cases brought to its attention by the Ombudsman, acting
within the Ombudsman’s Terms of Reference, where the Ombudsman considers there
14c You must agree to deal with any properly appointed representative of a Complainant (*). has been any single flagrant breach and/or any persistent breaches of the Code by any
14d All written complaints must be acknowledged in writing within 3 working days and a Member Agent. When considering such cases the CC will also consider whether the
proper investigation promptly undertaken. A formal written outcome of your investigation conduct is such that it raises issues concerning the Member’s continuing registration
must be sent to the Complainant within 15 working days of receipt of the original under the Consumers, Estate Agents and Redress Act 2007.
17c The CC will also consider cases of non-compliance where there may have been a single average member of that group, not the average consumer generally. This will be relevant
flagrant breach and/or any persistent breaches of the Code, failure to complete to you if you are targeting your commercial practice at a particular group of consumers.
compliance monitoring, where it is considered that the Member has brought the scheme 18d Cash Buyer. A ‘cash buyer’ can only be described as such if they have realisable cash
into disrepute or where the Member has seriously failed to comply with their assets, that is:
membership obligations in another way.
• the buyer has sufficient cash in the bank, building society or other investments,
17d The CC will determine any disciplinary sanction in accordance with its terms of which can be realised in a reasonable time, that is, it will be available by the
reference as defined from time to time. estimated or proposed exchange of contracts and completion dates; or
• the buyer has actually sold a property, that has exchanged contracts and is expected
18. Glossary of Terms to achieve completion before exchange on the purchase and the buyer does not require
In this Code, the following interpretations and definitions apply: a mortgage to make up any difference in the purchase price of the new property.
18a Aggressive Behaviour. Here are some illustrative examples of aggressive behaviour or 18e Client. A person who has instructed you to sell or to buy a property on their behalf, in
practices. It is not an exhaustive list. In each case, the test is whether the average the United Kingdom (excluding Scotland, the Channel Islands and the Isle of Man).
consumer’s freedom of choice or conduct is (or would be likely to be) impaired and, as Where appropriate, this definition includes a client’s properly appointed representative.
a result, they take (or would be likely to take) a different transactional decision. When 18f Complainant. Someone who is an actual or potential seller or buyer of residential
you gain new clients and instructions, when you market property, when you negotiate property making a complaint against a Member Agent. Where appropriate, this
and make sales. definition includes a Complainant’s properly appointed representative, third parties and
• Imposing onerous or disproportionate requirements which prevent a client from other definitions as set out in the Ombudsman’s Terms of Reference.
exercising rights to terminate an agreement or switch to another property sales 18g Connected Person. Includes:
business.
• Your employer or principal.
• Refusing to allow a consumer to cancel their contract with you, where a cancellation
• Your employee or agent.
period applies and has not expired.
• Any associate including the term “business associate” as defined within Sections
• Pressuring a potential buyer to use associated services, for example to take out a
31 and 32 of the Estate Agents Act 1979.
mortgage through the in-house mortgage advisor or to use a particular firm of
solicitors or licensed conveyancers. 18h Consumer. Refers to an actual or potential seller or buyer.
• Pressuring (for example by persistent and/or aggressive telephone calls) the buyer 18i Customer Due Diligence. Taking steps to identify your customers and checking they are
to act quickly to put in an offer, raise their price, skip the survey, finalise the sale who they say they are. It is a cumulative process and means obtaining the customers’:
and/or exchange contracts. • Full name
• In order to make commission quickly, pressure a seller client to accept an offer at • Official documentation which confirms their identity (normally a form of photo ID)
a lower price than is reasonable for their property, for example by telling them that
they cannot get a better offer. • Residential address and date of birth

• Pursuing commission to which you are not entitled. • Details of any resulting beneficial owners

• Intimidating, pressuring or coercing consumers into dropping complaints against Estate Agency Business Guidance on money laundering obligations is available on the
your business.  UK Government’s website.
18j Effective Introduction. An effective introduction must evidence that the agent carried
18b Associate. Includes a brother, sister, husband, wife, civil partner, aunt, uncle, nephew,
out an act that initiated the buyer’s reaction to the property. As such, there is a need for
niece, parents, grandparents, children and grandchildren. The definition also includes
a defined transaction event to occur. This can be most clearly evidenced by an agent
business associates.
carrying out a viewing.
18c Average Consumer. The ‘average consumer’ is someone who is reasonably well-informed,
18k Enhanced Due Diligence. Applies in situations where there is a higher risk of money
and reasonably observant and circumspect. For example, an average consumer would pay
laundering or terrorist finance. You must do this when:
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 • The transaction is complex or unusually large.
out publicly available facts for themselves where this is straightforward to do, although • A person is a Politically Exposed Person.
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 • Your risk assessment has identified that there is a high risk of money laundering.
particular group of consumers. In these cases, the ‘average consumer’ will refer to the • A seller or buyer is from a high risk country as identified by the UK Government.
 • You have been notified that a situation is high risk. 18v Service Charge. The amount payable by a lessee as a contribution to the costs of
Estate Agency Business Guidance on money laundering obligations is available on the services, repairs, maintenance, insurance, improvements or costs of management etc.
UK Government’s website. as set out in the lease. The amount payable may vary according to the costs incurred or
to be incurred.
18l Estate Agency Work. Things done by any person in the course of a business (including a
business in which they are employed) pursuant to instructions received from a Consumer 18w Transactional Decision. Informed decisions made by consumers, which include, but
(the “client”) who wishes to sell or buy any residential property in the United Kingdom: are not limited to:

• for the purpose of, or with a view to, effecting the introduction to the client of a third • A decision to find out more about your services, or to rule out using the services of
person who wishes to buy or, as the case may be, sell such residential property; and one of your competitors.

• after such an introduction has been effected in the course of that business, for the • A client’s decision whether and on what terms to sign or renew an agreement with
purpose of securing the sale or, as the case may be, the purchase of that property. you, or their decision to end an agreement.

18m Event Fees. Fees include “transfer”, “contingency”, “deferred-management” and “selling- • A seller’s decision whether to put their property up for sale or take it off the market,
service” fees and are triggered by an event (such as resale or sub-letting). Leases of to accept or turn down an offer, or to exchange on the sale or not.
retirement flats and bungalows often include a fee triggered by certain events, such as • A buyer’s decision whether to view an advertised property, or whether and on what
when the owner sells or sub-lets their property. 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.
18n Ground Rent. The rent payable to the landlord by the lessee as required by the lease.
18x Written, in Writing. Includes typed or hand-written letters, records or notes, emails,
18o Harass/Harassment. Unwanted conduct which has the purpose or effect of:
texts, other forms of digital messages and faxes. Electronic signatures are acceptable.
• violating a person’s dignity;
18y You. Applies to all those Estate Agents and their staff providing services bound by this
• creating an intimidating, hostile, degrading, humiliating or offensive environment Code.
for a person.
18p 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, the level of charges payable under a lease, uncertainties known
about 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.
18q Member. An estate agent who is a Member of the TPO voluntary scheme and who has
undertaken to abide by all provisions of the Code of Practice.
18r Privacy Notice. A published notice to consumers explaining how collected personal
data will be used and the lawful basis for processing it.
18s Property or Residential Property. Means property (land and/or buildings) used, last
used, or to be used for residential purposes.
18t Records. Means all written correspondence, file notes, contracts and agreements in
hard or digital copy or electronic communications including emails, texts and other
forms of digital messages or faxes.
18u Reserve Fund. Used interchangeably with the term ‘sinking fund reserve’. A fund
collected from the Lessees which allows the build-up of monies to pay for repairs and
the replacement of major items (such as lifts) or to equalise cyclical expenditure (such
as external decoration), avoiding excessive peaks in the Service Charge. Reference to Copyright © The Property Ombudsman Limited, Registered in England No: 3339975 2003. All rights reserved
Reserve Fund includes any sinking fund or replacement fund. and asserted under the Copyright Designs and Patents Act 1988. No unauthorised copying permitted.