There has been much consternation among sales agents in regards to the disclosure and possible ban of referral fees. Now the industry regulator has stepped in to clarify that its new guidance will also apply to letting agents.
Although the National Trading Standards Estate Agency (NTSEAT) does not regulate the lettings industry, its new guidance falls within Consumer Protection Regulations – which lettings agents are bound by – so they too are being urged to disclose referral fee arrangements in their terms and conditions. A breach of the new Act may render an agent liable for criminal prosecution under Consumer Protection Regulations, with a court deciding the agent’s fate.
NTSEAT intends to provide the Government with regular updates over the next 12 months on the level of referral fee transparency that is being achieved; with the threat of an outright ban if compliance is not forthcoming.
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