The Scheme

The Ombudsman for Estate Agents (OEA) Scheme provides a free, fair and independent service for dealing with unresolved disputes between Member Agents and tenants and landlords of residential property in the UK. The OEA is a member of the British and Irish Ombudsman Association and follows the standards and rules of the association. The Ombudsman is totally independent of the OEA Member Agents and reports directly to the OEA Council, which has a majority of non-industry members.

Why should you choose a letting agent who belongs to the OEA Scheme?

• Member Agents must follow the Letting Code of Practice adopted by the Ombudsman for Estate Agents Scheme and the National Association of Estate Agents (NAEA). This sets out the framework within which Member Agents must operate and the standards of service they must provide for both tenants and landlords.
• The Code is compulsory and is rigorously applied in our complaints handling.
• Member Agents must have Professional Indemnity Insurance.
• Member Agents must have an in-house complaints system with written procedures; inform you how to refer any unresolved disputes to the OEA; and co-operate with any investigation by the Ombudsman.
• Member Agents agree to pay compensation of up to £25,000, in full and final settlement of the complaints made in the dispute, if this is awarded and is accepted by you as the complainant. This award must be paid promptly.
• In rare cases when a Member Agent fails repeatedly to comply with the Code or has seriously breached the Code, the Member Agent can be reprimanded or expelled form the Scheme.

What can Tenants and Landlords expect from an OEA Member Agent?

The OEA/NAEA Letting Code of Practice requires Member Agents to meet all their legal obligations when acting as letting agents, but it goes above and beyond that - by requiring the Member Agents to adopt and follow 'best practice'. This includes:

• Duty of care. A letting agent must always work in the best interests of the client, that is to say the person who is paying for the letting agency services (usually the landlord). But the Member Agent must also always treat fairly, and with courtesy, all those involved in the proposed renting or letting. If the Member Agent or one of its staff has any personal or business interest in the property, the landlord must be told.
• Impartiality. A Member Agent must make sure that no tenants or landlords are disadvantaged because they are unfamiliar with any aspect of the letting process. A Member Agent will offer the appropriate explanations and assistance to all - regardless of age, race, experience, language, or physical ability.
• Access. The Member Agent must keep accurate records of keys held, and inform current tenants of any access required - except in cases of genuine emergency.

What else can Tenants expect from an OEA Member Agent?

• Offers. When an offer has been accepted but before the tenancy agreement is in force the Member Agent must inform the applicant whether or not marketing is to continue.
• Deposits. Any deposit that the tenant may be required to pay at the beginning of a tenancy which is held by the Member Agent will be held in a special client's deposit account. From the 6 April 2007, the law may require that any deposit taken on an Assured a Tenancy is held by an approved Tenants Deposit Scheme unless the letting agent has approved insurance to safeguard the tenant's deposit.
• Tenancy Agreement. Tenants should expect to be supplied with a draft Tenancy Agreement to read before signing, recording the terms of the letting including the rent, deposit or ancillary fees and charges, duration and repair obligations.
• Inventory. The Member Agent should ensure that the tenant receives an inventory of furniture, fittings and equipment at the beginning of the tenancy to record the condition of the property and/or the contents.

What else can Landlords expect from an OEA Member Agent?

• Recommended rents. The rental figure given by the Member Agent must represent current market conditions. The Member Agent must be able to support any figure given - and, wherever possible, it must be based upon comparisons with similar properties in a similar location.
• Terms of Business. The Member Agent must give you written Terms of Business that confirm your requirements and clearly state and explain all fees and charges.
• Marketing your property. The Member Agent must comply with various requirements about how 'To Let' boards are displayed, how viewings are conducted, and whether marketing should continue after an offer is received.
• Viewings. The Member Agent must follow the landlord's instructions on how viewings should be conducted. He will record and pass on to the landlord any feedback from viewings.
• References. The Member Agent will take due care in obtaining the references of potential tenants.

How do you tell if a Letting Agent is an OEA Member Agent?

All Member Agents display the OEA logo on windows, advertising and stationery. If you need help in finding a Member Agent you can contact the Ombudsman's Office.

What happens if you have a complaint?

Tell the Member Agent that you have a complaint and ask them to look at it under their internal complaints procedure. The Ombudsman will not consider your complaint unless you have done this first. If the Member Agent does not deal with your complaint within eight weeks of receiving it in writing, then you may take it direct to the Ombudsman.

When the Member Agent has finished considering your complaint he will normally tell you so, and if you are still dissatisfied, you can write to the Ombudsman* with brief details of your complaint. Please contact the Ombudsman's Office if you are not sure whether he can look at your complaint.

What complaints can be dealt with by the Ombudsman?

Both the landlords and the tenants can ask the Ombudsman to look into a complaint. Your complaint may be considered by the Ombudsman if you believe the Member Agent has:

• infringed your legal rights or not complied with the OEA Letting Code of Practice; or
• treated you unfairly; or
• been guilty of maladministration (including inefficiency or undue delay);

in a way that results in you losing money or suffering avoidable stress or inconvenience.

What complaints cannot be dealt with by the Ombudsman?

Broadly speaking, the Ombudsman cannot deal with your complaint if:

• your complaint is not against a Member Agent.
• your complaint is being, or has been, dealt with by a court or similar body.
• your claim is for more than £25,000
• your complaint refers to something that happened before the Agent joined the letting part of the OEA Scheme or more than 12 months before you complained in writing to the Member Agent.
• you refer your complaint to the Ombudsman more than six months after you receive the Member Agent's final answer or offer of settlement.

What will the OEA Scheme do?

The OEA works in partnership with The Dispute Service (TDS), an impartial redress scheme, to resolve complaints involving lettings and property management disputes. Complaints are handled using the normal rules of the OEA Scheme, but the cases are examined by the TDS.

When your complaint is received, the Ombudsman's Office will send you a Complaints Form with guidance on how best to present your side of the case. At the same time you will receive full information about how we will reach a fair and reasonable decision. When the OEA has decided that we can look into your complaint, we will pass the case to The Dispute Service and ask their Independent Case Examiner to examine the case and decide whether or not an award of financial compensation is merited. Even if he finds in your favour, he may decide that a financial award is not justified - for example, by concluding that it is sufficient for the Member Agent to change his procedures.

You can accept or reject the Independent Case Examiner's final decision. Where he has made an award of financial compensation, and you accept it, you do so in full and final settlement of your dispute with the agent. However, you can reject his final decision; if so, you give up your entitlement to the award - and you are free to do as you wish, including taking legal action against the Member Agent. Your legal rights are not affected by the Independent Case Examiner's decision. If you have any concerns about the process by which the case has been handled, please contact the Ombudsman. However, you should note that he will not re-open cases that the Independent Case Examiner has dealt with; he will only look to ensure that the correct process has been followed.