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Hertfordshire estate agent banned

76/08    20 June 2008

The OFT has made a prohibition order against Daniel Zane, director of former Hertfordshire estate agents Vue Estates Ltd, banning him from estate agency work.

An independent adjudicator found that Mr Zane failed to comply with an obligation under section 18 of the Estate Agents Act to provide written details of his fees and charges before a contractual agreement was entered into with a prospective purchaser. The adjudicator also found that he failed to pass on offers promptly and in writing, misrepresented the status of a prospective purchaser and failed to provide his client with prompt written details of services provided for a prospective purchaser.

Mr Zane also breached his duty to his client by seeking to obtain a 'secret commission' from a prospective purchaser without the informed consent of his client.
 
Mike Haley, OFT Director of Consumer Protection, said:

'This is a very serious example of an estate agent abusing his position to act for his own benefit and again demonstrates how the OFT will take action to ban those who are unfit to work in the industry.'

Mr Zane had until 18 June 2008 to appeal.

NOTES

1. The OFT can take action with a view to banning from estate agency work a person (and for the purposes of the Estate Agents Act 1979 this can also be a company or a partnership) who has been convicted of certain specified offences such as fraud, or other dishonesty or violence; or who has committed racial or sexual discrimination in the course of estate agency work; or who has failed to comply with the requirements placed on estate agents by the Estate Agents Act 1979 and its associated regulations (the Act), or who has engaged in specified undesirable practices, if an adjudicator finds that the person in question is unfit to act as an agent.

2. Before a Prohibition 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 determination to make an Order can be made to the Secretary of State.

3. Adjudicators issue and determine Prohibition and Warning Notices under the Act. They do so on behalf of the OFT, but make individual and independent decisions based upon 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 Zane breached the Estate Agents Act 1979 and the Estate Agents (Undesirable Practices)(No.2) Order 1991. A Prohibition Order was made in respect of Mr Zane on 21 May 2008. The Order does not come into operation until the period in which any appeal could be made under section 7(1) of the Act has expired.

5. Under section 18 of the Estate Agents Act, an estate agent must, before entering into any contract for estate agency services, give his client particulars of the circumstances in which the client will become liable to pay remuneration, and particulars of the amount of the agent's remuneration for carrying out estate agency work; or if this is not possible, details of the way in which it will be calculated.

6. Under the Estate Agents (Undesirable Practices)(No.2) Order 1991 an estate agent; must forward to his client promptly and in writing accurate details of any offer the estate agent has received from a prospective purchaser in respect of an interest in the land; must not make, knowingly or recklessly, a misrepresentation as to the existence or status of any prospective purchaser of an interest in the land; must forward to his client promptly and in writing an accurate list of the services that they have been asked by the prospective purchaser to provide.

7. 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.

8. The Act covers anyone who, in the course of business, is engaged in 'estate agency work'. This means introducing to someone else a person who wishes to buy, sell or lease land or property, and/or being involved in negotiating the subsequent deal. The work must be in the course of business, whether as employer or employee, and as a result of instructions from a client. The land or property may be commercial, industrial, agricultural or residential.

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