Tonbridge estate agent expelled from The Property Ombudsman owing a tenant £1,400

Buyers, sellers, tenants and landlords in Tonbridge, Kent, are being warned that a local estate and letting agent, The Olive Branch Estate Limited (trading as The Olive Branch), has been expelled from The Property Ombudsman (TPO) scheme owing a tenant £1,400. This means that the agent can no longer legally trade until the outstanding award is paid, although appears to have ceased trading. A tenant complained to The Property Ombudsman with issues regarding the condition of the property he let from the start of the tenancy, stating that it was cold, had not been cleaned as promised and there was a rat infestation. He also said the agent did not refund his security deposit or confirm that it had been registered with a deposit protection scheme. The tenant vacated the property after spending only one night there, but The Olive Branch refused to release him from the Tenancy Agreement or return the security deposit. The agent did not respond to the tenant’s complaint and so the tenant brought it to the attention of The Property Ombudsman. The agent failed to provide TPO with its company file when requested, and upon investigation, the Ombudsman found that works that The Olive Branch said they would undertake prior to the commencement of the tenancy had not been carried out. The agent had also not responded to or addressed any of the issues raised by the tenant when he moved into the property. With regard to the deposit, as the tenant entered into a Licence Agreement, rather than an Assured Shorthold Tenancy, there was no requirement for the deposit to be registered. However, the agent had acknowledged that the deposit was to be returned but had not actioned this. The Ombudsman made a £750 award of compensation for the shortcomings identified and also directed that The Olive Branch to return the tenant's deposit of £650, making a total payable by the agent of £1,400. The Olive Branch failed to pay the award and The Ombudsman referred the agent to the scheme’s independent Compliance Committee, which ruled it should be expelled from The Property Ombudsman scheme. The Olive Branch is not currently registered with a redress scheme, which is a requirement of every sales and letting agent in order to trade legally*.   They also do no not appear to be a member of a Client Money Protection scheme, also a legal requirement and do not have any professional memberships. The Olive Branch 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 The Olive Branch has failed to do. It appears that this agent is no longer trading, which is frustrating for the tenant who is owed outstanding monies. We would like to remind consumers to ensure they always use an agent which is a member of a redress scheme (The Property Ombudsman or The Property Redress Scheme) and holds Client Money Protection**.” Every sales and lettings agent in England is required to register with a Government-approved redress scheme, which enables consumers to have their complaint reviewed independently in the event of a dispute arising that the consumer is unable to resolve with the agent directly. An agreement between the two Government-approved redress schemes (The Property Ombudsman and The Property Redress Scheme, means The Olive Branch 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.