Save agents from unfair bribe jibes
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A recent Office of Fair Trading investigation concluded that there isn’t a strong case for introducing full regulation or licensing of estate agents.
EDDIE GOLDSMITH: SENIOR PARTNER GOLDSMITH WILLIAMS
Pretty much every other sector of the housing market is regulated so why not estate agency? It makes no sense that the process of buying and selling property falls outside regulatory control.
The OFT also expressed concern that the payment of fees to estate agents for referring buyers to third parties such as mortgage advisers, conveyancers and surveyors could encourage them to favour one buyer over another.
Some newspapers have latched onto this and described such fees as bribes, thus encouraging consumers to believe such practices should be banned. This is too simplistic a view of a reasonable arrangement that helps consumers navigate their way through a maze of housing-related services.
Most consumers choose lawyers or financial advisers on recommendations so why shouldn’t the party making the recommendation get a fee?
If estate agents were regulated there would be less concern about such issues. Under common law anyone who receives a fee must disclose it to avoid making a secret profit. But let’s not allow the facts get in the way of a media story.
The sensible solution is to put agents on a level playing field with other housing professionals, which means full regulation. This would help them avoid silly accusations of bribery.
