Offering services like conveyancing, mortgages or surveys is common practice - but it's a practice that needs to be handled carefully. To help agents stay on the right side of compliance, our Compliance Officer, Paul Offley, has outlined four clear steps every agent should follow:
Step 1: Disclose in your terms of business details of any services which you would offer to buyers and/or tenants.
Step 2: Prior to offering a referral to a third party provider, you must inform consumers in writing of any fees/commission you will be paid from that supplier. This includes payments to your firm or individuals, and any form of payment including vouchers. Confirm that the consumer is under no obligation to take up the services and are free to find an alternative supplier.
Step 3: By law, you cannot make it a condition of passing on offers to the seller/landlord that the buyer /tenant must use services offered by you or another party. You must not discriminate, or threaten to discriminate, because that person declines your offer of related services. You must not favour one party over another because the other party accepts one of your services offered.
Step 4: If a buyer/tenant decides to use one of your services offered, you must advise the seller/landlord in writing. This can be included in the notification of offer, sale memorandum or by separate letter/email.
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