Redhill based Estate Agent expelled from The Property Ombudsman following a complaint

Buyers, sellers, tenants and landlords in Redhill, North Somerset, are being warned that a local estate and letting agent PM Premier Limited (trading as PM Premier Ltd) has been expelled from The Property Ombudsman (TPO) scheme. This means the agent can no longer legally trade until the outstanding award of £500 is paid. A complainant (a potential commercial tenant) referred his issue to The Property Ombudsman stating that that PM Premier pressured him into paying a holding deposit, to which he was not provided with any paperwork. The complainant said he withdrew from the lease due to delays from the landlord and was asked to sign an agreement to agree to have a portion of the deposit refunded, which had already been passed to the Landlord. The agent’s response was that the landlord required a deposit and that the complainant withdrew from the let. The Ombudsman was not satisfied that PM Premier had complied with their obligations (under Paragraph 7a of the Commercial Code), as they did not clearly state in writing the terms of the deposit. There was a clear dispute regarding which party withdrew from the let, which resulted in aggravation, distress and inconvenience as both the landlord and the complainant felt the deposit was owed to them. The Ombudsman supported the complaint and made an award of £500 for the aggravation, distress and inconvenience caused to the complainant. The agent was not directed to return the deposit as this had been passed to the landlord and the agent had gone into voluntary liquidation. However, the liquidator’s contact details were provided to the complaint so that he could make a claim directly with the landlord if desired. PM Premier Limited failed to pay the award of £500 so The Ombudsman referred the agent to the scheme’s independent Compliance Committee, which ruled the firm should be expelled from The Property Ombudsman scheme. PM Premier Limited has been referred to Trading Standards. Gerry Fitzjohn, Non-Executive Director and Chairman of TPO’s Finance Committee: “As a member of TPO, agents are obliged to comply with awards made by the Ombudsman, which PM Premier has failed to do. Although the company has gone into liquidation and has therefore ceased trading, the directors have a number of other active directorships at companies house, including The Letting Station. This company has an active website http://thelettingstation.co.uk which appears to be actively trading from the previous address of PM Premier.” An agreement between the two Government-approved redress schemes (The Property Ombudsman and The Property Redress Scheme), means PM Premier Limited will not be able to register for any form of redress until the award is paid. Redress registration is required for the agents to trade legally.