Compensation against Gazumping

Getting Compensation from Estate agents is getting easier. But only if they are a member of the National Association of Estate Agents (NAEA).

From April 3 all of its 10,000 members will have to join the Ombudsman for Estate Agents (OEA), which offers compensation if you have lost money or been inconvenienced by an estate agent.

But because the Government has so far failed to make becoming a member of an independent complaints scheme compulsory, it is estimated that less than 50% of the market will actually be covered by the OEA or the compensation scheme run by the Royal Institution of Chartered Surveyors (RICS).

Peter Bolton King, chief executive of the NAEA says: 'The Housing Bill originally said that every estate agent should belong to an independent redress scheme. But when it became an Act the compulsion only related to Home Information Packs (HIPs).

'We have long called for every agent to be made to join a professional body and we have been in discussion with the Department of Trade and Industry about making the Ombudsman compulsory for all.'

Despite Trade and Industry Secretary Alan Johnson announcing he wants all estate agents to be made to join the Ombudsman scheme last October, a DTI spokesman says: 'No decision has been made as to whether the Government intends to make it compulsory for all estate agents to offer access to an independent scheme for all areas of their business.'

Homebuyers using a member of the OEA can claim up to £25,000 compensation if they feel they have been badly treated by their agent. Reasons to complain include: misleading small print in the contract terms, conflicts of interest and encouraging gazumping. The service is free and the Ombudsman aims to resolve claims within two to three months.

£197,000
House

• A charming one-bedroom property in a classic ex-local authority style with plenty of opportunity for modernisation.
• Fully-fitted kitchen incorporated into open-plan lounge and bedroom.
• Amazing views of nearby railway line.
• Sociable neighbours.
• Offered to the market chain free.
• Ideal for first time buyers or DIY enthusiast.

Complaints about a survey or property valuation should be made to the RICS not the OEA, and you must complain within 12 months of the offence taking place or six months after you received a final offer of settlement from the agent. The firm must have been a member of the OEA when the offence took place.

The RICS arbitration scheme covers areas such as fees, surveys and property valuations. It costs £117.50 for consumers and will look at any complaints after September 1, 1998. The maximum compensation is £50,000.

RICS is also piloting an Ombudsman scheme in Scotland. This can pay out up to £25,000 in compensation and £500 on top for maladministration for incidents taking place in Scotland after October 1, 2004. It is free to homebuyers and should be rolled out across the country next year.

Tenants will also receive an added layer of protection from October 1 when the requirement for tenants' deposits to be protected comes into effect. Landlords will have to either put deposits into a secure account or keep the money and pay an insurance premium to safeguard the money in case of maladministration.

At the end of the tenancy the money is either paid back in full or, if there is a dispute, referred to an independent disputes resolution service, which, if agreed to by both parties, will be legally binding.

Foxtons Notting Hill: A dialogue

Foxtons, Notting Hill (londons' most assy estate agents)
91-95 Notting Hill Gate
London W11 3JZ

this is the day i decided to call my buddies from foxtons.

tel 0845 337 0754

Foxtons: [cheery female voice, almost shattering but not that flattering] Hello Foxtons, how can i help?

Me: i saw this property down the road.. here's the reference...

Foxtons: oh, yes the one which is under offer?

Me: what?

Foxtons: one moment i'll just put you through to the right person.

Me: [i didn't get a chance to say a word and i'm put on hold for about 2 minutes]

Foxtons: hello, edward speaking.

Me: yes, hello my name is so and so and i would like some information about this property.

Edward from Foxtons:oh yes, this property has been taken off the market.

Me: oh i see, that's why it's still on the website.

Edward from Foxtons: well it shouldn't, we are not allowed to show it anymore.

Me: may i ask you a question?

Foxtons: sure.

Me: how long is the lease on that property?

Edward from Foxtons:i think there is about 102 years left.

Me: so can you tell me how many years there are left?

Edward from Foxtons:well you know the information is given to us by the vendor and sometimes mistakes happen.

Me: well i would think that on a property for that price you would at least check this.

Edward from Foxtons: we've got millions of properties we cannot check all the time.

Me: would you mind to find out for me?

Edward from Foxtons: why do you want to know this?

Me: perhaps i want to put in an offer.

Edward from Foxtons: well the property is taken off the market.

Me: you seem not to be a good business man, how long have you been with this company?

Edward from Foxtons: 6 months. i do not think this is relevant to this conversation.

Me: well i think it is, because you cannot give me accurate information.

Edward from Foxtons: this conversation is a waste of time.

Me: well it would not have been fine if you have said to me "listen mr. so and so, i don't know the exact length of the lease but i will call the seller and call you back." but obviously it's too complicated to pick up the phone and call the seller.

Edward from Foxtons: this is a waste of time talking to you.

Me: [hanging up]


voicemail, 10 minutes later from edward:

hi, its' ed from foxtons 0207616709 i just rung the vendor of so and so and unfortunately they didn't pick up the phone. please call me back in regards of lease length. thanks.

this is how a good customer service is perceived? i will never call them again.

(c) 2007 Foxtons - another useless Estate agent in London

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Property in switzerland

Buying Property in Switzerland is more popular than ever before with British skiers, as the French market hardens and becomes more expensive. There are restrictions on foreign ownership — Switzerland is not a member of the EU — but these are loosening up and it is now possible to buy in most resorts. Simon Malster, who owns the specialist ski chalet agency Investors In Property, says that Switzerland offers much better value than France.

One reason is that Most British people ski in France, so they are inclined to buy property in France. But this has pushed the prices up. I am convinced that some of the smaller resorts in Switzerland offer much better value. You get more for your money and you’re often not very far from the airport.

Do not, however, imagine that anything will be cheap. “You will need at least £200,000 for a decent place anywhere in the Alps. The fact is there isn’t much land left to build on — and prices will continue to go up.” Malster recommends Villars and Verbier as reasonably priced Swiss alternatives to Chamonix and Morzine.

ON THE SLOPES

Chalet Lärche in Klosters, with panoramic mountain views. It has six bedrooms, five bathrooms and three balconies and is £1,265,308

The Balcon des Alpes, just above Villars, is a spacious first-floor, two-bedroom apartment with a large balcony and a garage. It is £232,000

The last phase of these apartments, in Les Arcs, will soon be available. Studios are from £150,000, two-, three- and four-beds are from £250,000

If you are thinking of buying an apartment, consider its transport links. Don’t assume that deals on low-cost flights are on permanent offer but at least they are always on time.

Interestingly, i would rather look away from buying in the slopes but actually buy in the main cities such as Zurich, Bern or Basel.

In zurich a recent sale of a one bedroom flat resulted in £230.-/sqf. In comparison a similiar property in London would be priced at £560.-/sqf. Zurich having the Googlers coming over now is definitely good investment!