Estate Agent Negligence

As a profession, estate agency does not always have the best reputation. Most of the time, this criticism is unjustified. The majority of estate agents work hard to provide a professional and trustworthy service and deliver good results for their clients.

However, there are cases where estate agents do not fulfill their responsibilities properly and this can lead to serious consequences for their clients. Not every mistake made by an estate agent constitutes negligence. However, if they fail to act competently in their duties, then you may have grounds to pursue a claim against them.

What is estate agent negligence?

Professional negligence has a specific meaning in law. In the context of estate agents and letting agents, negligence is when an agent breaches their duty of care to their client by failing to carry out their duties with reasonable skill and care, and this results in financial loss or damage to you.

This can include a wide range of actions, such as:

• Marketing a property substantially below its market value (resulting in financial loss).
• Marketing a property substantially above its market value (resulting in a slow sale or no sale).
• Providing incorrect or misleading information about a property.
• Failing to prepare and distribute sales particulars of a property.
• Failing to disclose important information, such as known structural issues.
• Not carrying out necessary checks on tenants.
• Failing to properly manage and maintain a property on behalf of the landlord.
• Breaching confidentiality by sharing sensitive information without permission.
• Misrepresenting their qualifications, experience or services.

There are many more scenarios that could constitute estate agent negligence. If you are not sure whether you have a claim, speak to our property negligence team. We can advise on whether you may be able to secure damages to help you deal with the consequences of estate agent mistakes.

What standard of service can I expect from an estate agent?

Estate agents are largely unregulated in the UK.

Unlike other property professionals, such as conveyancers or architects, estate agents do not have to be licensed or adhere to specific codes of conduct.

This means that there is no “official” standard of service that you can expect from an estate agent.

However, this does not mean that estate agents are exempt from liability for their actions. They have a statutory duty to act in the best interests of their client and treat all parties fairly, and the law of negligence requires them to carry out their duties in line with what a competent professional would do in similar circumstances.

Some estate agents voluntarily register with a professional organisation, like Propertymark (formerly the National Association of Estate Agents), the Association of Residential Letting Agents or the UK Association of Letting Agents. These bodies uphold standards of professionalism for their members. These standards serve as a benchmark of good practice, and also provide a complaints mechanism for consumers.

What is the Property Redress Scheme?

Since 2008, all estate agents in the UK who engage in residential estate agency work are required to belong to an approved redress scheme, either The Property Ombudsman or the Property Redress Scheme.

These schemes provide a free, independent service for resolving disputes between estate agents and clients. Their objective is to resolve disputes in full and final settlement, using techniques such as mediation or formal adjudication to resolve the matter. Compared to court proceedings, resolving the dispute can be relatively swift.

However, redress schemes will only consider complaints where you have exhausted the complaints procedure of the estate agent first. As specialists in this area of law, we can help you navigate the complaints process and hold the estate agent to account through the redress scheme, if this is appropriate in your case.

How do I pursue a claim through the courts for estate agent negligence?

Redress schemes are not suitable in every instance. For example, while the Property Ombudsman has the power to grant awards up to £25,000, in practice, awards of this magnitude are extremely rare. Most compensation awards are less than £500. If you are seeking a greater damages payout, or the claim is commercial or technical in nature, then court proceedings may offer a better route.

Launching court proceedings does not mean that your case will go to trial. The court will require you to seek an amicable resolution first, which may involve roundtable discussions, a mediation session, or another form of alternative dispute resolution.

At all stages of the process, having an experienced professional negligence solicitor by your side can make all the difference. At Osbornes, we have extensive experience in litigating complex and higher-value professional negligence claims. We can help put together a strong case of evidence, including expert witnesses who can testify to the standards of service expected of estate agents, and recover damages that properly reflect your loss.

How much compensation can I expect for estate agent negligence?

The amount of damages you receive for estate agent negligence depends on the specific circumstances of your case. The compensation should put you in the financial position you would have been in if the negligence had not occurred.

Some factors that can affect the amount of compensation you receive include:

• The amount you overpaid or undersold on a property deal.
• The amount you paid to resolve problems.
• Any extra costs incurred due to delays or errors, such as alternative accommodation or legal fees.
• Lost rent.
• Interest on the financial losses.

Our property negligence solicitors will value your claim at the earliest opportunity and work to secure the maximum amount of compensation possible for you.

All estate agents should have professional indemnity insurance to cover claims of professional negligence. While the claim is made against the individual agent or agency, any compensation awarded will be paid by their insurance company.

Work with an experienced estate agent negligence solicitor

Estate agent negligence claims are assessed on a case-by-case basis. Your chances of receiving the maximum compensation for your losses are greatly improved by working with an experienced solicitor in this specialist area, who can provide professional, pragmatic advice.

Our team brings over 40 years of experience to the table. We will ensure that you are robustly represented in your estate agent negligence claim, and will happily provide a free assessment to discuss your case and whether your claim is suitable for our No Win, No Fee funding scheme.

To learn more about our estate agent negligence service, call Osbornes’ specialist property litigation lawyers by:

• Filling in our online enquiry form; or
• Calling us on 020 4502 8784