Code of Practice for Residential Estate Agents – page 7 of 8
18. Glossary of Terms
In this Code, the following interpretations and definitions apply:
18a Aggressive Behaviour. Here are some illustrative examples
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f aggressive behaviour or practices. It is not an exhaustive
list. In each case, the test is whether the average consumer’s
freedom of choice or conduct is (or would be likely to be)
impaired and, as a result, they take (or would be likely to take)
a different transactional decision. When you gain new clients
and instructions, when you market property, when you
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egotiate and make sales.
• Imposing onerous or disproportionate requirements which
prevent a client from exercising rights to terminate an
agreement or switch to another property sales business.
• Refusing to allow a consumer to cancel their contract with
you, where a cancellation period applies and has not expired.
• Pressurising a potential buyer to use associated services,
for example to take out a mortgage through the in-house
mortgage advisor or to use a particular firm of solicitors
or licensed conveyancers.
• Pressurising (for example by persistent and/or aggressive
telephone calls) the buyer to act quickly to put in an offer,
raise their price, skip the survey, finalise the sale and/or
exchange contracts.
• In order to make commission quickly, pressurising a seller
client to accept an offer at a lower price than is reasonable
for their property, for example by telling them that they
cannot get a better offer.
• Pursuing commission to which you are not entitled.
• Intimidating, pressurising or coercing consumers into
dropping complaints against your business, for example
by the use of threatening or abusive when you deal with
complaints.
18b Associate. Includes a brother, sister, husband, wife, civil
partner, aunt, uncle, nephew, niece, parents, grandparents,
children and grandchildren. The definition also includes
business associates.
18c Average Consumer. The ‘average consumer’ is someone who
is reasonably well-informed, and reasonably observant and
circumspect. For example, an average consumer would pay
some attention to documentation given to them, but not
necessarily to the small print unless key points in it are
brought to their attention. An average consumer would check
out publicly available facts for themselves where this is
straightforward to do, although what checks they actually
make will be influenced by the information that you have given
them. The CPRs do, however, provide for where a commercial
practice is targeted at a particular group of consumers. In
these cases, the ‘average consumer’ will refer to the average
member of that group, not the average consumer generally.
This will be relevant to you if you are targeting your
commercial practice at a particular group of consumers.
18d Cash Buyer. A ‘cash buyer’ can only be described as such if
he has realisable cash assets, that is:
• he has sufficient cash in the bank, building society or other
investments, which can be realised in a reasonable time,
that is, it will be available by the estimated or proposed
exchange of contracts and completion dates; or
• he has actually sold a property, that he has exchanged
contracts and is expected to achieve completion on his
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ale before exchange on his purchase and he does not
require a mortgage to make up any difference in the
purchase price of the new property.
18e Client. A person who has instructed you to sell or, for a fee,
to buy, a property on his or her behalf, in the United Kingdom
(including the Channel Islands and the Isle of Man). Where
appropriate, this definition includes a client’s properly
appointed representative.
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8f Customer. Customer refers to an actual or potential seller or
buyer.
18g Complainant. Someone who is an actual or potential seller or
buyer of residential property making a complaint against a
Member Agent. Where appropriate, this definition includes a
Complainant’s properly appointed representative.
18h Connected Person. Includes:
• Your employer or principal.
• Your employee or agent.
• Any associate including the term “business associate” as
defined within Sections 31 and 32 of the Estate Agents Act
1979.
18i Estate Agency Services. Things done by any person in the
course of a business (including a business in which he is
employed) pursuant to instructions received from a Consumer
(the “client”) who wishes to sell or buy any residential property
in the United Kingdom:
• for the purpose of, or with a view to, effecting the introduction
to the client of a third person who wishes to buy or, as the
case may be, sell such residential property; and
• after such an introduction has been effected in the course
of that business, for the purpose of securing the sale or,
as the case may be, the purchase of that property.
18j Event Fees. Fees connected with the sale of sheltered
housing and other events such as subletting.
18k Harass/Harassment. The Equality Act 2010 (Section 26)
defines harassment as:
Unwanted conduct related to disability, sex, gender
reassignment or race and which has the purpose or effect of:
• violating someone’s dignity;
• creating an intimidating, hostile, degrading, humiliating or
offensive environment for the service user.
Harassment also includes sexual harassment and less
favourable treatment of a service user because they submit
or reject sexual harassment, or to harassment related to sex
or gender reassignment.
Harassment because of someone’s sexual orientation or
religion would amount to unlawful direct discrimination and
is also prohibited under the Equality Act.
18l Material Information. In the most straightforward sales, the
material information that you should give to potential buyers
may be quite basic. Little more than the asking price, location,
number and size of rooms, and whether the property is freehold
or leasehold. However, depending on the circumstances of
each sale, material facts could include the length of the lease,