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OFT warns Surrey estate agent

105/08    15 September 2008

The OFT has issued a warning order against Raja Padcham, owner of RSR Estate Agents, London Road, Croydon.

The order is based on Mr Padcham's failure to disclose to a vendor, in writing, his personal interest in the purchase of a property as well as his failure to pass on, in writing, offers made on the same property to the vendor, as required by the Estate Agents (Undesirable Practices) (No.2) Order 1991.

Mike Haley, OFT Director of Consumer Protection, said:

'Estate agents must be transparent with their clients about any personal interest in a property that is marketed by them. The OFT has powers to take tough action against agents to ensure they meet their legal obligations in the interest of consumers.'

NOTES

1. The OFT can make a warning order if it is satisfied that a person in the course of estate agency has failed to comply with a statutory obligation or has engaged in a practice which has been declared undesirable by the Secretary of State. The OFT can bar from estate agency work a person who fails to comply with the order and/or continues these undesirable practices in future.

2. Before a warning order is issued, the person concerned has the right to make representations to the OFT as to why the order should not be made. If these representations are unsuccessful, an appeal against the decision to make an order can be made to the Tribunals Service, an executive agency of the Ministry of Justice, on behalf of the Secretary of State.

3. Adjudicators issue and determine warning notices under the Estate Agents Act 1979 (the Act). They do so on behalf of the OFT, but make individual and independent decisions based on the contentions in a notice, the evidence attached to a notice and the representations of those to whom a notice is addressed. Representations may be made in writing and at an oral hearing.

4. An adjudicator determined that Mr Padcham of RSR Estate Agents, 781 London Road, Thornton Heath, Croydon CR7 6AW, had engaged in conduct which constituted practices, declared undesirable by the Estate Agents (Undesirable Practices) (No.2) Order 1991. A warning order was made in respect of Mr Padcham on 13 August 2008, and he had until 10 September 2008 to lodge an appeal. Mr Padcham did not exercise this right so the order has now come into force.

5. Under the Estate Agents (Undesirable Practices) (No.2) Order 1991 ('the UPO') an estate agent must forward to his client promptly and in writing that he has, or is seeking to acquire a beneficial interest in the land or in the proceeds of sale of any interest in the land. Also, under the UPO, an estate agent is required to pass on to his client promptly and in writing accurate details (other than those his client has indicated in writing that he does not wish to receive) of any offer he has received from a prospective purchaser in respect of an interest in the land.

6. After an order has been made, the person affected can at any time, and on payment of a fee, currently £2,500, apply to the OFT for the order to be varied or revoked. The OFT will then consider the request in the light of current circumstances.

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