9:47 AM, 7th September 2012, About 9 years ago 23
I am very concerned about the number of readers letters that I receive from both landlords and vendors of properties who feel they have been ripped off by unscrupulous and unlicensed agents calling themselves “Property Sourcers“.
There is very little I can do about this other than offer sympathy as Property118 is neither an arbitrator nor a regulator.
These “Property Sourcers” (which sometimes also refer to themselves as “buyers agents, property mentors, property clubs etc.) regularly use the phrase “Instant Equity” or “below market value” in advertisements for investment properties for sale. I am not convinced that many of these deals are even a bargain, let alone how it can be possible to justify advertising properties using such terminology. Surely a property is only worth as much as somebody is prepared to pay and if a vendor could get a better deal they would do so?
If people or businesses claim to act as an agent for a buyer or a seller of a property, my understanding of the Estate Agency Act 1979 is that they are “Estate Agents” regardless of what other fancy title they want to dress up their activities as and should therefore comply with The Estate Agency Act 1979 in terms of registering with an Ombudsman service and satisfying the criteria of membership. I quote a section from the OFT website (in blue text below) which, to my way of thinking, is quite clear on this:-
By law, you are an estate agent if:
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.