The world of real estate is complex and attracts many different kinds of people, including those who might defraud you as you try to buy or sell a home. Whilst most home buying and selling endeavours don’t experience any real problems, there are times when these transactions also go wrong, and either the buyer or the seller ends up frustrated and upset. Unfortunately, in the past, you had little recourse to deal with the problem. Often there was only the legal system, but given how slow and expensive that can be, few sought helps there. Luckily, today, there’s a better choice – the Property Ombudsman. A free alternative to the court system, it’s the ideal solution to problems in the world of buying and selling homes today.
What It Is
The Property Ombudsman Service was created in 1990 to help consumers overcome unfair issues in the real estate industry. The office offers both advice and dispute resolution where it’s possible. Ombudsmen are free, unbiased, and independent schemes that assist consumers with any type of dispute in the industry. There are two options in the UK:
- The Property Ombudsman (Sometimes called TPOs)
- The Property Redress Scheme
The office with which you consult depends greatly on your individual situation. While neither has legal powers, they can make recommendations for change. When one party has erred, both schemes do have the ability to offer financial help of £25,000. To get help, the party that wronged you must participate in one of the two schemes. Always ask estate agents, conveyancing solicitors, and others involved in the real estate market whether they participate in these schemes before you hire them. It gives you an opportunity to ensure any wrongs done to you during the process of trying to buy or sell a home can be addressed outside of the court system.
Wondering why this works so well? If any company or individual participating in the scheme fails to obey what the ombudsman has recommended correcting the error, the company or agency will most likely be expelled. In the long run, that can have negative consequences for them. In order for most firms and property businesses to function, they have to participate in one of the authorised groups. If they do not become a member, they are not able to trade to partake in any real estate transactions. Should the company or individual decide to rejoin either of the two schemes, it is unlikely that they will be re-admitted unless they fulfil the earlier obligations.
Understanding the Process
While you can make any type of complaint to the organisation, it has to be valid and real. The majority of people who go to the ombudsman make a complaint about lack of communication, poor marketing, or lack of record keeping. Other complaints may include:
- Violation of your legal rights
- Biased treatment
- Poor service
- Failing to abide by the Code of Practice
- Failing to return a deposit even though no work was done
In most cases when there is a dispute between the two parties, the consumer has to first make a complaint to the company’s consumer department complaints office. It is only after this avenue to resolve the issue has been exhausted and there is no resolution of the dispute that one can then move on to the ombudsman. A company needs at least 8 weeks to respond before the ombudsman will step in.
If the issue at heart is complex and difficult, the ombudsman’s office will first review the evidence from everyone involved before any decisions are made. Thus, for the consumer, it is vital to submit all the supporting information on the dispute, including photos, emails, voicemails, or any correspondence with the opposing party. If the ombudsman agrees that you have been wronged, then he or she will reach out to the other party regarding your complaint. The other party will then have 2 weeks to accept either move forward or file an appeal. However, the other party can only file an appeal if there is proof that the ombudsman’s review is in error or that they have new evidence to prove that they are right.
The ombudsman will reach out to you in writing regarding the decision made by the other party and you will have 4 weeks to respond.
If your claim is supported by TPOS, the agency can award you up to £25,000, but in most cases, the award is much less. On average even after the ombudsman votes in your favour, the claims usually settle for under £500.
If for any reason the Ombudsman process doesn’t work for you, you can still file a lawsuit.