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Code of Practice for

Residential Estate Agents

(England, Wales and Northern Ireland)

Effective from 1 June 2019

The Property Ombudsman

Milford House, 43-55 Milford Street, Salisbury, Wiltshire SP1 2BP

Complaints Enquiries: 01722 333 306 Email: admin@tpos.co.uk

Membership Enquiries: 01722 335 458 Email: membership@tpos.co.uk

accounts@tpos.co.uk

membershipcompliance@tpos.co.uk

@TPOmb facebook.com/PropertyOmbudsman www.tpos.co.uk

TPOE27-8

Registered Office: The Property Ombudsman Limited, Milford House, 43-55 Milford Street, Salisbury, Wiltshire SP1 2BP.

Registered in England: 3339975.

All references to the singular include the plural.

Terms marked (*) - the first time they appear are defined in a Glossary of Terms at Section 18.

All references to ‘sellers’ include potential sellers.

All references to ‘buyers’ include potential buyers and viewers.

1. General Provisions

Applicability

1a This Code applies to estate agency work (*) in England, Wales and Northern Ireland

undertaken by a person or organisation who has agreed or is required to comply with it

for the marketing of residential property (*). Note that letting and buying agents in the

United Kingdom and letting, management and sales agents operating in Scotland and

the Channel Islands are covered by separate Codes of Practice.

General Obligations

1b You (*) must comply with this Code of Practice. You must comply with all laws (as

amended, re-enacted or substituted with or without modification from time to time)

relating to residential estate agency and in particular the Estate Agents Act 1979, the

Consumers, Estate Agents and Redress Act 2007, the General Data Protection Regulation

(or any successor legislation), Competition Act 1998, the Consumer Protection from

Unfair Trading Regulations 2008 (CPRs), Business Protection from Misleading Marketing

Regulations 2008 (BPRs), Consumer Contracts (Information, Cancellation and Additional

Charges) Regulations 2013, Consumer Rights Act 2015, Energy Act 2011 (Green Deal)

and all other current and relevant primary or secondary legislation.

1c You must register with the appropriate authority in accordance with the Money

Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer)

Regulations 2017.

1d You must ensure that all staff are fully conversant with all aspects of this Code of

Practice and their legal responsibilities. Such staff must observe this Code and their

legal responsibilities in all their dealings with consumers. Staff must have a good

working knowledge of the law of estate agency work, the law of contract, and all relevant

estate agency legislation; and familiarity with the basic conveyancing and mortgage

application processes.

1e You should provide a service to both buyers and sellers consistent with fairness, integrity

and best practice; and you should not seek business by methods that are dishonest,

deceitful, manipulative or involve misrepresentation. You must avoid any course of action

that can be construed as aggressive behaviour (*) or harassment (*).

1f You must treat consumers equally regardless of their race, religion or belief, sex, sexual

orientation, gender recognition, disability, pregnancy or maternity, or nationality.

Unlawful discrimination includes giving less favourable treatment because someone is

perceived to have one of these personal characteristics or because they are associated

with a person with such a characteristic.

1g You should take special care when dealing with consumers who might be disadvantaged

because of factors such as their age, infirmity, lack of knowledge, lack of linguistic or

numeracy ability, economic circumstances, bereavement or do not speak English as

their first language.

Contents:

1. General Provisions

2. Duty of Care and Conflict of Interest

3. Advertising for New Business

(Canvassing)

4. Market Appraisal

5. Instructions, Terms of Business,

Commission and Termination

6. Energy Performance Certificates

7. Marketing and Advertising

8. Viewing and Access to Premises

9. Offers

10. Financial Evaluation

11. Deposits

12. Between Acceptance and

Exchange of Contracts

13. Exchange and Completion

14. In-house Complaints Handling

15. Referrals to the Ombudsman

16. Compliance Monitoring

17. Non-Compliance with the Code

18. Glossary of Terms

This Code of Practice is mandatory for all Property Ombudsman (TPO)

Members who are entitled to display the above TPO and ‘Approved Code’

logos and who engage in estate agency work in England, Wales and

Northern Ireland. Copies of this Code of Practice and the TPO Consumer

Guide should be made available to consumers. You should prominently

display the logos in the window of all your offices, your website(s), your

letterheads (including emails and other digital communications) and

your marketing material.

This Code comprises of two elements:

• Best Practice - standards set above the minimum level required by law.

• Legal Obligations - standards set by law.

TPO Members are expected to conduct their business practices in-line with both elements of

the Code, as such, the Code intentionally does not differentiate between the two elements. In

line with the Ombudsman’s Terms of Reference, TPO can consider complaints raised by

consumers against TPO Members against these obligations.

Note: TPO is not authorised to take enforcement action or make decisions on potential breaches

of legislation. Where potential breaches or criminal activity is found by TPO, we will report the

matter to the appropriate authority. Local Trading Standards (and/or appointed lead enforcement

authority) are responsible for enforcement of legislation and regulations. The Courts are

empowered to determine whether legal obligations have been met. References made to

legislation and regulations within this Code are made for information and education purposes.

1h You must not release or use confidential information for any purpose other than that

for which it was given by consumers (*) during the process of selling or buying

residential property without the consumer’s permission, unless legally required to do

so. Personal data should be processed in line with data protection legislation and your

business’s privacy notice

(*).

1i Save where you are required to delete such records sooner under applicable law, you

must keep clear and full written (*) records (*) of all transactions for a period of 6 years

and produce them when required by the Ombudsman and/or any enforcement authority,

such as Trading Standards.

1j As a TPO Member (*) you must not take, or be involved in any action which would bring

the scheme into disrepute.

Publicity

1k In accordance with the Alternative Dispute Resolution for Consumer Disputes

(Competent Authorities and Information) Regulations 2015, you must include TPO’s

name and website address on your website, within your terms of business and within

any other sales or service contract you agree with a consumer.

1l You must use and display material promoting the Code of Practice as provided by TPO.

You must prominently display the TPO logo in the window of all your offices, your

website(s), your letterheads (including emails and other digital communications) and

your marketing material (including advertisements).

1m You must have available, free of charge, copies of this Code of Practice and Consumer

Guide to give to consumers in all your offices.

2. Duty of Care and Conflict of Interest

2a You must treat all those involved in the proposed sale or purchase including sellers and

buyers fairly and with courtesy.

2b When instructed, your duty of care is to the client (*). You must offer suitable advice to

meet the client’s aims and needs. Where the law and the interests of the client conflicts,

adherence to the law must prevail.

2c You must avoid any conflict of interest. You must disclose at the earliest opportunity in

writing (*) to consumers or any relevant third party any existing conflict of interest, or

any circumstances which might give rise to a conflict of interest.

2d If you intend to offer or recommend to consumers surveying, financial, investment,

insurance, conveyancing or other services, or those of an associate (*) or connected

person (*), where the service provider rewards you for the referral by way of money,

gifts or any other form of benefit, you must disclose this arrangement to consumers in

accordance with the National Trading Standards Estate Agency Team’s ‘Guidance On

Transparency of Fees Involving Property Sales’

2e Consumer requirements are key and this applies to the buyer as well as the seller. You

should complete a consumer fact find to ensure that any specific requirements are

taken into consideration.

2f You must by law

tell the seller if you intend to offer buyers surveying, financial,

investment, insurance, conveyancing or other services or those of an associate or

connected person in connection with that purchase, before the seller has committed

any liability to you. Thereafter, you must inform the client in writing or in the

memorandum of sale, as soon as reasonably possible after you find out that a buyer,

who has made an offer, has applied to use one or more of these services in connection

with that purchase.

2g If your firm is instructed to sell a property and you, an employee or an associate (or an

associate of the employee of your firm) is intending to buy it you must by law, before

negotiations begin, give all the relevant facts, in writing, to the seller; and as soon as

possible to the seller’s representative.

2h If you, an employee or an associate is intending to buy a property which your firm is

instructed to sell, that person must take no further direct part in the sale of that property

on behalf of your business.

2i If you are selling a property that is owned by you, an employee or an associate (or an

associate of an employee) or in which you, an employee (or an associate of an employee)

has an interest, you must by law, before negotiations begin, immediately make this

known, in writing. The person who is selling should not participate in the direct sale of

the property.

3. Advertising for New Business (Canvassing)

3a You must not use unfair methods when seeking new business. Advertising material

should be in accordance with the Advertising Standards Authority’s (ASA) Codes and

must be truthful, not misleading and fully explain who the message is from, its purposes

and how the consumer’s interest can be followed up.

3b In your canvassing material, if you seek to use a property you have recently sold and where

completion has occurred, you must obtain the new owner’s prior permission in writing.

3c Fees must be shown inclusive of VAT alongside a statement confirming that VAT is included.

3d If a consumer is interested in using your services, you must draw to their attention, and

explain before they are committed to another contract, the potential of paying fees to

more than one agent where another agent has been previously instructed.

3e You must take decisions on the content of your advertisements independent of your

competitors, such as how you advertise your fees, charges or any additional costs, or

any special offers, discounts or other value offering.

3f You must act promptly if a consumer asks you to stop canvassing them.

4. Market Appraisal

4a When you give advice to someone selling their property, that advice must be in the

consumer’s best interests and within the law. The potential benefits and disadvantages

of any recommended method of sale must be explained in clear terms and take into

account consumer (*) requirements as outlined in paragraph 2e.

https://ico.org.uk/for-organisations/resources-and-support/

https://en.powys.gov.uk/article/3989/Business-Information-NTSEAT

http://www.legislation.gov.uk/uksi/1991/859/contents/made

4b Any figure you advise, either as a recommended asking price or as a possible selling

price must be given in good faith and must reflect available information about the

property and current market conditions and must be supported by comparable evidence.

You must never deliberately misrepresent the market value of a property.

4c Any evidence relating to comparables of similar properties in a similar location must

be retained on file for future reference.

4d You must keep your marketing strategy under regular review with your client.

4e For leasehold, commonhold or managed freehold properties you should make the seller

aware that they should contact their lease administrator, commonhold association, or

freehold manager to obtain material information required by potential buyers, as set out

in paragraph 7k.

5. Instructions, Terms of Business, Commission and Termination

Instruction

5a You must, at the point of instruction, inform your client in writing that you are a Member

of TPO and subscribe to this Code of Practice.

5b You must not directly or indirectly harass (*) any person in order to gain instructions, nor

must you repeatedly try to gain instructions in a way likely to cause offence.

5c You must not instruct other agencies to assist you in selling a property without the

seller’s permission. If the seller gives permission, as the instructing agent, you are liable

at law for the actions of the sub-instructed agent and will be held responsible for any

failures to comply with this Code of Practice by that sub-instructed agent even if that

sub-agent is not a TPO Member.

5d Notwithstanding paragraph 5c if you are instructed as a sub-agent or share listings via

a website, you must continue to act in accordance with all relevant provisions of this

Code of Practice.

5e You should take reasonable steps to satisfy yourself that the seller is entitled to instruct

you (such as obtaining title information from the Land Registry; declaration of trust;

deed of variation; power of attorney) and to sign on behalf of all co-sellers.

5f In accordance with the Money Laundering, Terrorist Financing and Transfer of Funds

(Information on the Payer) Regulations 2017, you must undertake Customer Due Diligence

(*) and, where appropriate Enhanced Due Diligence (*), on the seller before you establish

a business relationship. Should you have suspicion, knowledge or reasonable ground to

suspect that money laundering is taking place, you must report this in accordance with

your money laundering policy and procedures. You must keep records of your Customer

Due Diligence checks for five years from the date of the transaction.

Signing

5g You must give your client written confirmation of their instruction for you to act in the

buying or selling of property on their behalf. You must by law give the client written

details of your Terms of Business including your fees and charges before they are

committed or have any liability towards you. You must sign and date your Terms of

Business before they are given to your client. The client must be given sufficient time

to read them before signing and agreeing to instruct you (refer also to paragraph 5p).

The client should be given a copy, signed by both parties, to retain.

Fair Contracts

5h Your Terms of Business and your contract must be consistent with the provisions of this

Code of Practice and comply with Part 2 of the Consumer Rights Act 2015.

5i Your Terms of Business should be written in plain and intelligible language. In particular

you must use in your Terms of Business the specific definitions in the Estate Agents

(Provision of Information) Regulations 1991. You must take particular care for example

in defining and distinguishing between ‘sole agency’ and ‘sole selling rights’; and in

describing a ‘ready, willing and able’ contract. You must use the relevant definitions in

full, display them prominently and clearly explain the implications of the terms to your

client, especially where multiple definitions are used.

Fees and Charges

5j All fees and additional costs must be included in your Terms of Business. They must be

fully explained, clearly and unambiguously stated in writing, along with an explanation

of the specific circumstances in which those fees and costs will become due, before the

client is committed to the contract.

5k Where the fee is a percentage it must be quoted inclusive of VAT. The example amount

should be based on the asking price. However, you must make it clear that, should the

selling price be higher or lower than the asking price, your commission fee will be

correspondingly higher or lower.

5l Where you charge a fixed fee you must state the actual amount payable inclusive of VAT

in the contract and ensure that the client understands that the fee will not vary whatever

the sale price.

5m Except for any previously agreed additional costs, commission fees will become due on

exchange of contracts.

5n Where your Terms of Business include options for sellers to use associated and/or

recommended services (such as conveyancing), sellers should be presented with the

opportunity to actively opt-in to use the service. Requiring sellers to actively opt-out of

any additional or recommended service should be avoided. Charges made for not using

a service must be disclosed in accordance with the National Trading Standards Estate

Agency Team’s ‘Guidance On Transparency of Fees Involving Property Sales’

5o In the circumstances where a buyer may become liable for your fees, this liability must

be communicated at the earliest opportunity such that in all forms of media, the

property asking price is accompanied by a statement that ‘buyer’s fees apply’ and that

websites allow for a click-through to an information pack and FAQs. Appropriate

arrangements should be made to provide the same information where non-electronic

access is present. The information pack should have ‘key features’ of the approach as

the first page and include a full explanation of all fees and additional costs, the

circumstances upon which they become due and advise that by paying your fee, that

amount may be considered as part of the chargeable consideration for the property and

be included in the calculation for stamp duty land tax liability.

https://en.powys.gov.uk/article/3989/Business-Information-NTSEAT

5u At the time of the termination of the instruction, you must explain clearly in writing any

continuing liability the client may have to pay you a commission fee and any circumstances

in which the client may otherwise have to pay more than one commission fee. Your

explanation must include a list of parties that you have introduced to the property.

5v Your action in pursuing a commission fee or additional charges must be proportionate

and reasonable and not intimidatory.

5w Although nothing precludes you taking court action to pursue payment of your

commission account, it is generally expected that you will not take court action when a

complainant has referred the matter to the Ombudsman.If howeveryou dopursue

payment of your commission fee through the courts you must agree to the Ombudsman

considering any outstanding service-related complaints after the court action has been

determined.

Subsequent Changes

5x Any subsequent changes to the Terms of Business must be:

• Mutually agreed by you and your client.

• Promptly confirmed in writing.

• Where appropriate, contained in a new Terms of Business signed and dated by your

client.

6. Energy Performance Certificates

6a The relevant provisions set out in Section 5 should be followed when entering into an

agreement with a seller for the supply of an Energy Performance Certificate (EPC) in

relation to the property to be marketed.

6b You must provide adequate information to the seller to enable the seller to understand

the basic legal requirement for and content of an EPC, and use in relation to the

marketing of the property.

6c You must advise the seller in writing of all charges relating to the supply of an EPC and

the terms of payment.

7. Marketing and Advertising

7a You must not put any property on the market for sale without permission from the seller

and without a valid EPC compiled in accordance with the relevant legislation or evidence

that a valid EPC has been commissioned. If a buyer requests a copy of an EPC, this

must be provided free of charge.

For Sale Boards

7b You must not erect any form of estate agency board at a property unless you have been

instructed to market that property.

7c You can only erect an estate agency board with the specific permission of the seller.

Where the property is leasehold or commonhold, you should advise the seller to check

for any restrictions within their lease or commonhold community statement and obtain

their response before erecting the board.

Duration and Termination

5p Your Terms of Business must clearly state the minimum duration of your instruction,

and how it can be terminated by either party. When a contract is signed by a client during

a visit by you to their home, at their place of work, away from your premises or online,

then they must be given a right to cancel that contract within 14 calendar days after the

day of signing. The client should be given a ‘Notice of Right to Cancel’. Where the client

wishes the contract to begin before the end of the 14 day cancellation period you must

obtain confirmation of that request in writing. Where you intend to recover costs incurred

during this cancellation period you must obtain the client’s agreement in writing to

those specific costs before work commences.

5q If you intend to charge the client a fee or recover costs for terminating the instruction,

you must make this clear in your Terms of Business and specify the amount of the fee

and additional costs and their purpose. Fees and costs should reasonably reflect the

activity undertaken and not include a penalty charge.

5r On receipt of the client’s instruction (includes executor, trustee, person holding power

of attorney), or on your own decision, to terminate your instruction, you must promptly

give the client written confirmation that you are no longer acting for them, confirm the

actual date of termination, and give details of any fees or additional costs the client

owes you (see 5u below).

5s Your contract must allow for the required notice of termination to be given before the

end of the term, such that termination by the client can occur at the expiry of the

minimum term.

Fee Entitlement and Client Liability

5t At the time of receiving instructions from a seller you must:

• point out and explain clearly in your written Terms of Business that you may be entitled

to a commission fee if that seller terminates your instruction and a memorandum of

sale is issued by another agent to a buyer that you have introduced (see definition of

effective introduction (*) and supplementary TPO ‘Dual Fee’ guidance) within 6 months

of the date your instruction ended and where a subsequent exchange of contracts

takes place.

If no other estate agent is involved this time limit extends to 2 years.

• advise that the seller may be liable to pay more than one fee if they instruct another

agent during or after the period of your agency.

• ask the seller if they have previously instructed another agent in respect of the

property, and if advised yes:

• ask to see a copy of the previous agency agreement to ensure that by instructing

you, the seller will not be in breach of contract (note that if the seller is unable or

refuses to supply a copy, you must advise, in writing, that you are unable to advise

as to whether the seller is in breach of their agreement with the previous agent);

• specifically advise of the possible liability to pay more than one agent;

• establish if an interested party has previously viewed through another agent;

• if an interested party has previously viewed through another agent and makes an

offer through you, you must disclose this information and refer the sale back to

that agent as they will be deemed to have introduced the buyer (please refer to

supplementary TPO ‘Dual Fee’ guidance).

• Approximate total amount of reserve fund;

• Details of any event-related fees and charges payable under the lease that are

triggered by certain circumstances or events;

• Details of any other fees / charges contained in the lease, commonhold community

statement or title deeds.

For all properties, material information would include, but is not limited to the following;

• Details of any unusual restrictions or covenants affecting the use and enjoyment of

the property.

You must take all reasonable precautions and exercise all due diligence by asking the

seller to declare such information in writing (see paragraph 4e and/or via the completion

of a property information questionnaire signed by the seller). Where you have doubt or

information is missing you should ask further relevant questions of the seller. If all

reasonable enquiries with the seller have been carried out and certain information is

still unavailable, the fact that the information is unknown should be clearly disclosed

to buyers, to enable them to make an informed transactional decision.

7l In regard to properties being re-sold with existing building warranties, you should ask

the seller to declare in writing (for example via the completion of a property information

questionnaire signed by the seller) the remaining length of the warranty and whether

any claim has been made against the policy. This information should be made available

to buyers to enable them to make an informed transactional decision.

7m You will be liable if you include anything in the sales particulars which you have reason

to doubt is correct.

7n All advertisements must be legal, decent, honest and truthful in accordance with the

ASA Codes. Manipulating internet portals (and other channels of marketing) to give the

impression a property is new to the market, when it is not; inflating your market share

by listing properties multiple times; listing properties that are not currently available to

buy; or claiming to have sold a property which was sold by another agent, is misleading.

7o If you intend to include material produced by a third party, you must obtain that party’s

permission to do so prior to the commencement of marketing.

8. Viewing and Access to Premises

Viewings

8a You must take a seller’s instructions regarding viewings, specifically whether or not they

should be conducted by you.

8b You must record any viewings that have been arranged for that property, feedback from

those viewings and pass this to the seller within an agreed timescale. If this feedback

is an offer, you should refer to section 9.

8c Before arranging any viewing, you must tell the buyer if you are aware of an offer that

has already been accepted subject to contract by the seller.

8d In accordance with paragraph 5t, when you know the property has been, or is being

marketed by another agent you should establish if your buyer has previously viewed the

property through that or any other agent.

7d Any board you do erect must be appropriate.

7e When you put up a board you must by law comply with the appropriate regulations. You

must accept liability for any claim arising under these regulations in connection with

the board.

7f If your board relates to part of a building in multiple occupation, it should indicate the

part of the building to which it relates.

7g You must not replace another agent’s board with your own, hide it or remove it from a

property, without the seller’s permission or without notifying the other agent.

7h You must comply with local legislation in relation to erecting your boards.

Published Material and Information about a Property

7i You must by law comply with the Consumer Protection from Unfair Trading Regulations

2008 (or the Business Protection from Misleading Marketing Regulations 2008 where

applicable). The Consumer Protection from Unfair Trading Regulations 2008 require you

to disclose any information of which you are aware or should be aware of in relation to

the property in a clear, intelligible and timely fashion and to take all reasonable steps

to ensure that all statements that you make about a property, whether oral, pictorial or

written, are accurate and are not misleading. All material information (*) must be

disclosed and there must be no material omissions which may impact on the average

consumer’s (*) transactional decision (*). Where information is given to consumers

and/or their representatives, it must be accurate and not misleading.

7j Prior to commencement of marketing, the written details of a property (sales

particulars) must be agreed with the seller to confirm that the details are accurate.

Sales particulars that have not been agreed by the seller must be marked as ‘draft’,

‘subject to approval’ or similar to ensure buyers are aware that the property details

could be subject to change.

7k In accordance with paragraph 5e, where the title is registered at HM Land Registry, you

should seek to obtain title information to verify the tenure of the property.

• In regard to leasehold properties, in accordance with paragraph 4e, you must provide

material information to the consumer so they can make an informed transactional

decision. Material information in respect of the lease includes, but is not limited to,

the following:

• Number of years remaining on the lease;

• Amount of ground rent (*) and when payable, together with details of how this will

increase over time, if applicable;

• Rent payable in the case of a shared ownership arrangement;

For leasehold, commonhold and freehold properties where the owner has a legal

obligation to contribute towards the maintenance costs of a shared amenity, material

information would include, but is not limited to the following:

• Amount of service charge (*), and when payable;

• Amount of any event fees (*), and when payable;

• Amount of reserve fund (*) contribution and when payable (if not already included

in other charges);

or continue to be marketed. In the latter case, you must advise the buyer in writing and

ensure your marketing clearly explains that an offer has been accepted subject to

contract. The buyer must also be informed in writing should the seller later decide to

put the property back on the market. You remain under the legal obligation to pass on

offers, as defined in 9a.

9f You must keep all buyers who have recently made offers through you, and which have

not already been rejected, informed of the existence of other offers you have submitted

to the seller.

9g You must be fair and not misleading when disclosing the amount of any offers made to

other buyers. Before disclosing the amount of an offer, you must advise the seller of

such intention and get the seller’s agreement; and you must warn all buyers who make

offers that it is your practice to do so. If you do disclose any offer to one buyer, then all

offers must be immediately disclosed to all buyers with a current interest in negotiations

for the property.

9h After an offer has been accepted subject to contract, you must promptly tell that buyer

if the seller accepts another offer.

9i By law you must not misrepresent or invent the existence, or any details, of any other

offer made or the status of any other person who has made an offer. If you know that

the seller has instructed a legal representative to send a contract to an alternative buyer,

you must then tell your buyer in writing.

10. Financial Evaluation

10a At the time that an offer has been made and is being considered by the seller, you must

take reasonable steps to find out from the buyer the source and availability of their funds

for buying the property and pass this information to the seller. Such information will

include whether the buyer needs to sell a property, requires a mortgage, claims to be

a cash buyer (*) or any combination of these. Such relevant information that is available

should be included in the memorandum of sale having regard to data protection laws.

10b You must put all offers to your seller client even if the buyer has not been financially

qualified at that stage.

10c These reasonable steps must continue after acceptance of the offer until exchange of

contracts and must include regular monitoring of the buyer’s progress in achieving the

funds required, and reporting such progress to the seller.

11. Deposits

11a Unless the buyer and seller wish to utilise a reservation agreement, you should not

generally facilitate pre-contract deposits. However, if you are instructed to do so, you

must ensure that before a deposit is taken, the circumstances under which the deposit

is to be held, refunded, forfeited or used towards the purchase, are clearly stated in

writing, agreed by the relevant parties and a copy of the agreement provided to those

parties. In each circumstance the beneficiary of the deposit (and any interest accrued)

must be clearly defined.

11b You must not hold a deposit, or any other money belonging to a seller or buyer, unless

you are covered by adequate insurance.

Access to Premises

8e Unless otherwise instructed by the seller, if you hold the keys to a property you must

accompany any viewings of that property. If you are arranging for someone to view an

occupied property, you must agree the arrangements with the occupier (including any

tenants) beforehand, wherever possible.

8f You must make sure that all the keys you have are coded and kept secure. You must

maintain records of when you issue keys and to whom, and when they are returned.

These records must be kept secure and separate from the actual keys. You must only

give keys to people providing you with satisfactory identification.

8g If access to a property is required by a person on behalf of the buyer (e.g. a surveyor,

builder, tradesman etc) and you hold the key but are not able to accompany that person,

this must be made clear to the seller beforehand and the seller’s express permission

obtained before you hand over the key.

8h You must exercise reasonable diligence to ensure that, after any visit by you, a property

is left secure.

9. Offers

9a By law, you must tell sellers as soon as is reasonably possible about all offers that you

receive at any time until contracts have been exchanged unless the offer is an amount

or type which the seller has specifically instructed you, in writing, not to pass on. You

must confirm each offer in writing to the seller, and to the buyer who made it, within 2

working days.

9b In accordance with the Money Laundering, Terrorist Financing and Transfer of Funds

(Information on the Payer) Regulations 2017, you must undertake Customer Due Diligence

and, where appropriate Enhanced Due Diligence, on the buyer before a binding contract has

been entered into (for example, exchange of contracts). Should you have suspicion,

knowledge or reasonable ground to suspect that money laundering is taking place, you must

report this in accordance with your money laundering policy and procedures. You must keep

records of your Customer Due Diligence checks for five years from the date of the transaction.

9c You must keep a written or electronic contemporaneous record of all offers you receive

including the date and time of such offers and the seller’s response.

9d By law you cannot make it a condition of passing on offers to the seller that the buyer

must use services offered by you or another party. You must not discriminate, or

threaten to discriminate, against a buyer because that person declines to accept that

you will (directly or indirectly) provide related services to them. Discrimination includes

but is not limited to the following:

• Failing to tell the seller of an offer to buy the property.

• Telling the seller of an offer less quickly than other offers you have received.

• Misrepresenting the nature of the offer or that of rival offers.

• Giving details of properties for sale first to buyers who have indicated they are

prepared to let you provide services to them.

Continuation of Marketing

9e When an offer has been accepted subject to contract you must take and confirm the

seller’s instructions as to whether the property should be withdrawn from the market,

complaint. A senior member of staff, or designated complaint handler, not directly

involved in the transaction should deal with the complaint. In exceptional cases, where

the timescale needs to be extended beyond this limit, the Complainant should be kept

fully informed and an explanation provided.

14e If the Complainant remains dissatisfied, the Complainant must be told how the complaint

can be further pursued within your business. This should provide the opportunity for a

speedy, separate and detached review of the complaint by staff not directly involved in

the transaction. Such a review must be sent to the Complainant within 15 working days.

14f Following the conclusion of your investigation, a written statement of your final view, and

including any offer made, must be sent to the Complainant. This letter must also tell

the Complainant how the matter can be referred to the Ombudsman, pointing out that

any such referral by the Complainant must be made within 12 months of your final view.

14g You must not imply that payment of any outstanding commission fee or additional costs

is a condition of a review by the Ombudsman.

15. Referrals to the Ombudsman

15a You must co-operate with any investigations by the Ombudsman being conducted in

accordance with the Ombudsman’s Terms of Reference.

15b You must:

• comply with any award and/or direction made by the Ombudsman against you and

accepted by the Complainant and which is binding upon you under the Terms of

Reference; and

• pay the Complainant the amount of any such award if accepted by the Complainant

within the period for payment required by the Ombudsman.

16. Compliance Monitoring

16a You must comply with the requirements of any code compliance monitoring or compliance

survey procedure used by TPO Limited.

16b You must inform consumers that their contact details may be used in any

monitoring/survey process in order to ensure compliance with data protection

legislation (in particular, the General Data Protection Regulation or any successor

legislation). You must also inform consumers of the lawful basis of such processing,

which might be, for example, that the processing is necessary for the purposes of your

legitimate business interests.

17. Non-Compliance with the Code

17a Cases of non-compliance will be dealt with by the Compliance Committee (CC) of the

TPO Board.

17b The CC will consider those cases brought to its attention by the Ombudsman, acting

within the Ombudsman’s Terms of Reference, where the Ombudsman considers there

has been any single flagrant breach and/or any persistent breaches of the Code by any

Member Agent. When considering such cases the CC will also consider whether the

conduct is such that it raises issues concerning the Member’s continuing registration

under the Consumers, Estate Agents and Redress Act 2007.

11c Any client money held must by law be in a separate client account or accounts, as set

out in the Estate Agents (Accounts) Regulations 1981. You must be able to account

immediately for all money you are holding on behalf of a seller or buyer.

11d By law you must not deduct any cost or charges from any money you hold, unless your

client has given you written authority to do so. You should ensure that your client’s

authority is obtained at the time of the deduction or that you give your client sufficient

notice prior to the deduction to object to it.

12. Between Acceptance and Exchange of Contracts

12a After acceptance of the offer by the seller, and until exchange of contracts you have no

direct influence on such matters as the conveyancing process or the mortgage lending

process. Your obligations to the client are:

• to monitor progress;

• to assist where possible, as asked;

• to report information deemed helpful to bringing the transaction to fruition;

• where there is a chain, routinely check the immediate transactions and communicate

information helpful to bringing your client’s transaction to fruition.

You must keep written or electronic records of such activity.

12b If a buyer becomes involved in a contract race, the buyer should be told promptly of the

situation and given such information which comes to your attention as is consistent

with your duty to the seller and the other buyer(s).

13. Exchange and Completion

13a After exchange of contracts you must not give the buyer the keys to the property without

the specific permission of the seller or the seller’s legal representative.

13b Where you become aware that the seller must contractually vacate the property by a

specific time on the day of completion, this should be conveyed to the seller at the

earliest possible opportunity.

13c At completion, you should offer to assist with the handover of keys during your office

working hours and maintain a record of what has been agreed. If the seller so requests,

you must assist.

14. In-house Complaints Handling

14a You must maintain and operate an in-house complaints procedure. Such procedures

must be in writing; explain how to complain to your business and to the Ombudsman;

be readily available in each office and on your website; and be available for inspection

by the Ombudsman and/or TPO Limited.

14b All verbal and written complaints must be recorded by you at the time they are made.

14c You must agree to deal with any properly appointed representative of a Complainant (*).

14d All written complaints must be acknowledged in writing within 3 working days and a

proper investigation promptly undertaken. A formal written outcome of your investigation

must be sent to the Complainant within 15 working days of receipt of the original

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 they have realisable cash

assets, that is:

• the buyer 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

• the buyer has actually sold a property, that has exchanged contracts and is expected

to achieve completion before exchange on the purchase and the buyer 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 to buy a property on their behalf, in

the United Kingdom (excluding Scotland, the Channel Islands and the Isle of Man).

Where appropriate, this definition includes a client’s properly appointed representative.

18f 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, third parties and

other definitions as set out in the Ombudsman’s Terms of Reference.

18g 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.

18h Consumer. Refers to an actual or potential seller or buyer.

18i Customer Due Diligence. Taking steps to identify your customers and checking they are

who they say they are. It is a cumulative process and means obtaining the customers’:

• Full name

• Official documentation which confirms their identity (normally a form of photo ID)

• Residential address and date of birth

• Details of any resulting beneficial owners

Estate Agency Business Guidance on money laundering obligations is available on the

UK Government’s website.

18j Effective Introduction. An effective introduction must evidence that the agent carried

out an act that initiated the buyer’s reaction to the property. As such, there is a need for

a defined transaction event to occur. This can be most clearly evidenced by an agent

carrying out a viewing.

18k Enhanced Due Diligence. Applies in situations where there is a higher risk of money

laundering or terrorist finance. You must do this when:

• The transaction is complex or unusually large.

• A person is a Politically Exposed Person.

• Your risk assessment has identified that there is a high risk of money laundering.

• A seller or buyer is from a high risk country as identified by the UK Government.

17c The CC will also consider cases of non-compliance where there may have been a single

flagrant breach and/or any persistent breaches of the Code, failure to complete

compliance monitoring, where it is considered that the Member has brought the scheme

into disrepute or where the Member has seriously failed to comply with their

membership obligations in another way.

17d The CC will determine any disciplinary sanction in accordance with its terms of

reference as defined from time to time.

18. Glossary of Terms

In this Code, the following interpretations and definitions apply:

18a Aggressive Behaviour. Here are some illustrative examples of 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 negotiate

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.

• Pressuring 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.

• Pressuring (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, pressure 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, pressuring or coercing consumers into dropping complaints against

your business.

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

18v Service Charge. The amount payable by a lessee as a contribution to the costs of

services, repairs, maintenance, insurance, improvements or costs of management etc.

as set out in the lease. The amount payable may vary according to the costs incurred or

to be incurred.

18w Transactional Decision. Informed decisions made by consumers, which include, but

are not limited to:

• A decision to find out more about your services, or to rule out using the services of

one of your competitors.

• A client’s decision whether and on what terms to sign or renew an agreement with

you, or their decision to end an agreement.

• A seller’s decision whether to put their property up for sale or take it off the market,

to accept or turn down an offer, or to exchange on the sale or not.

• A buyer’s decision whether to view an advertised property, or whether and on what

terms to make an offer on a property, instruct a solicitor or licensed conveyancer,

commission a survey, apply for a mortgage, or exchange on the purchase.

18x Written, in Writing. Includes typed or hand-written letters, records or notes, emails,

texts, other forms of digital messages and faxes. Electronic signatures are acceptable.

18y You. Applies to all those Estate Agents and their staff providing services bound by this

Code.

• You have been notified that a situation is high risk.

Estate Agency Business Guidance on money laundering obligations is available on the

UK Government’s website.

18l Estate Agency Work. Things done by any person in the course of a business (including a

business in which they are 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.

18m Event Fees. Fees include “transfer”, “contingency”, “deferred-management” and “selling-

service” fees and are triggered by an event (such as resale or sub-letting). Leases of

retirement flats and bungalows often include a fee triggered by certain events, such as

when the owner sells or sub-lets their property.

18n Ground Rent. The rent payable to the landlord by the lessee as required by the lease.

18o Harass/Harassment. Unwanted conduct which has the purpose or effect of:

• violating a person’s dignity;

• creating an intimidating, hostile, degrading, humiliating or offensive environment

for a person.

18p 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, the level of charges payable under a lease, uncertainties known

about title, major structural defects, lack of connection to mains services, etc. At the

outset of the marketing process, you are not expected to research issues that are

outside your line of business, for example, where your business is marketing property

and the issues are ones that a surveyor or conveyancer would investigate. However,

should you become aware of such information later on, you cannot ignore or suppress

it. If the information is material, you will need to disclose it.

18q Member. An estate agent who is a Member of the TPO voluntary scheme and who has

undertaken to abide by all provisions of the Code of Practice.

18r Privacy Notice. A published notice to consumers explaining how collected personal

data will be used and the lawful basis for processing it.

18s Property or Residential Property. Means property (land and/or buildings) used, last

used, or to be used for residential purposes.

18t Records. Means all written correspondence, file notes, contracts and agreements in

hard or digital copy or electronic communications including emails, texts and other

forms of digital messages or faxes.

18u Reserve Fund. Used interchangeably with the term ‘sinking fund reserve’. A fund

collected from the Lessees which allows the build-up of monies to pay for repairs and

the replacement of major items (such as lifts) or to equalise cyclical expenditure (such

as external decoration), avoiding excessive peaks in the Service Charge. Reference to

Reserve Fund includes any sinking fund or replacement fund.

and asserted under the Copyright Designs and Patents Act 1988. No unauthorised copying permitted.