I
mentioned in a recent article the
importance of regular communication
between agents and consumers.
I repeatedly see cases where the agent’s
failure to communicate adequately or at
all has severely disadvantaged the
complainant and I wanted to highlight
a few of these cases. I also consider that
clear and precise communication must go
hand in hand with the keeping of detailed
progress notes in order that the agent has
evidence that they regularly communicated
with the complainant.
I dealt with a case recently where a
property was being marketed on behalf
of the seller complainant. An indication of
whether or not a property is priced keenly
is the interest it attracts but, during five
months of marketing, no viewings were
conducted. There was no evidence within
the branch file to show that the marketing
strategy was discussed during this period,
or that the need for a price reduction was
mentioned, until the complainant emailed
the branch to complain about the lack of
contact. At that point, the branch
representative visited the property and
a price reduction was agreed.

Paragraph 2c of the TPO Code of
Practice requires an agent to keep their
general marketing strategy under regular
review with their client. I was extremely
critical of the agent in this example in that
no attempt had been made over a five
month period to regularly review the
marketing of the property and suggest
price reductions in the light of the
deteriorating market and lack of viewers.
Consequently I upheld the complaint
concerning communication failures and
made an award in respect of the
aggravation caused to the complainant.
I receive a significant number of cases concerning dual fee situations. Leaving
aside the issue of introduction, the aspect
that I often have to consider is whether the
agent has advised the complainant that he
may incur the possibility of incurring two
fees. Failure to do so may place the
complainant in the situation of proceeding
with a second agent, unaware of the
potential increased liability.
Under the
TPO Code I expect any agent to fully
explain to their seller client, at the point
of instruction, that there may be a dual fee
liability if they have previously instructed
another agent to sell the property or if they
chose to instruct another agent during or
after the period of agency with the first
agent. This obligation is clearly set out in
Paragraph 3m. Additionally, under
Paragraph 3n, at the time of termination,
an agent must explain, in writing, any
continuing liability a seller may have to pay
a commission fee, or the circumstances in
which he may have to pay more than one
fee. I have seen cases where no such
warning has been put in writing but the
agent advises that, on dis-instruction, he
had verbal discussions with the seller.
While this may be the case, it is not
sufficient to satisfy the requirements of the
Code and, furthermore, an agent is often in
difficulties when called upon to prove that such conversation took place. Although
it is not my role to alter the contractual
entitlement, I will make an award if the
agent’s actions have resulted in the
complainant proceeding, not fully being
aware of the consequences of the situation,
and hence being severely disadvantaged.
Finally, I wanted to mention one recent
lettings case. The complainant (the tenant)
complained that the agent had
misrepresented the extent of the works
required at the property prior to her
entering into the tenancy agreement.
The complainant also asserted that the
agent’s communications regarding the
maintenance and repairs were not
adequate and that, as result, the required
works were not carried out when they
should have been, leaving her and her son
to inhabit a damp and mouldy property,
without central heating, during the winter
months, which had an effect on their
health. I found that, while the agent had
stated that they dealt with all maintenance
issues promptly and efficiently, they failed
to provide any evidence to support their
argument. While I was unable to establish
the extent of the works required as
conveyed to the complainant prior to the
tenancy starting, due to the lack of an
inventory and the property’s marketing
particulars, I did support the complaint
concerning communication, as well as
noting several serious complaint handling
failures. I made an award of £300.
Lessons to be learned: regular
communication is of the utmost
importance; marketing should be kept
under review and detailed records kept of all
conversations within the progress notes.