Since the enactment of the Property Services (Regulation) Act 2011, property service providers have had to abide by the new regulations. We have set out below some tips to help avoid common breaches to these regulations;

Know which license is required

Typically, property service providers will provide different types of service. Depending on the services provided by them, they may require one or both of the following; License type 1- Auctioneers & Estate Agents engaging in the purchase, sale, letting or auctioning of land or property. License type 2- Property Management Agents

Client Account Name

The client account maintained by the property service provider should contain the word “client” in its title. If it doesn’t then this is a breach of the regulations.

Office expenditure

Office expenditure should not be paid from the client account. Client funds belong to the clients and any non-client related expenditure made from the client bank account is a breach of the regulations.

Documentation

Adequate documentation must be kept on file to prove that payments from and receipts to the client account are correct and fully authorised. For example, if rental income is received to the client account on behalf of a landlord there should be a contract on file between the property service provider and the landlord. Any fees due to the property provider in providing these services should also be documented in the contract and paid over to the office account in accordance with the agreement.

What questions do you have?

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