While there has been much opposition to the introduction of HIPs and concerns over their regulation, the OFT has made clear that it has the power to judge whether an estate agent is fit to practice under the Estate Agents Act. It can therefore impose a ban on any estate agent found to be flouting the Act and can also issue a warning order.
Once a warning order has been issued, if the agent continues to breach the Act, the OFT could make a prohibition order banning the agent from practising as an estate agent in the future.
Mike Haley, OFT head of consumer protection, said: “It is important that agents are aware of their obligations and the consequences if they fail to comply. If an agent fails to comply, this could trigger an investigation into an agent’s fitness to continue estate agency work.”
HIPs were finally introduced into England and Wales on 1 August after the government delayed their introduction by two months and restricted their mandatory use to properties of four or more bedrooms.
Peter Bolton King, chief executive for the National Association of Estate Agency, commented: “As far as our members are concerned, they know they have to comply with the laws of the country and we expect them to keep to the rules of HIPs. We’re pleased to see this warning going out, but believe it is aimed at those who are willing to contravene the rules. While we don’t imagine there will be many, we will be monitoring the situation very closely.”
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