The new law will require every estate agent, who engages in residential estate agency work, to belong to an approved redress scheme.
The Estate Agents (Redress Scheme) Order 2008, which will take effect across the UK from 1 October 2008, will allow buyers and sellers of residential property to refer complaints about estate agents to an ombudsman, free of charge.
The ombudsman will have the power to take a range of actions, including requiring the estate agent to pay compensation.
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The ombudsman's decision will be binding on the estate agent, however complainants will also have the right to reject the decision, and pursue their complaint through the courts.
Estate agents who fail to join an approved scheme by 1 October 2008 will be subject to a £1,000 penalty charge, and those who refuse to join a scheme could ultimately be banned by the Office of Fair Trading (OFT) from carrying out estate agency work.
In Northern Ireland, the legislation will be enforced by the Trading Standards Service (TSS) of the Department of Enterprise, Trade and Investment.
David Livingstone, Head of Trading Standards Service, said: "Trading Standards Service has written to all estate agents in Northern Ireland to notify them about the new law, and to advise on what action is required.
"While we hope that it will not become necessary to impose penalty charges on any estate agents in Northern Ireland for non-compliance, nonetheless we are duty bound to enforce this new law. If any agents fail to join one of the approved schemes, we will have no option but to take enforcement action."
(PR/JM)
