Three estate agents and two letting agents have been expelled from The Property Ombudsman after failing to pay compensation to customers.
Prime Property Agents, based on Clarendon Street in Nottingham, was told to pay a buyer £7,400 after not returning a £7,200 reservation fee when a purchase fell through.
The agent did not follow its own terms and conditions and failed to offer a suitable alternative or refund the full amount.
Cowlings Estate Agents, on The Quay in Bideford, Devon, owed £1,087 after not checking a buyer’s proof of funds.
The agent marked the sale as cash, but the sellers found out the buyer was seeking finance.
The sale collapsed and the sellers withdrew, with the Ombudsman awarding costs.
Nexmove, registered as NXMVETGN Ltd on Den Road in Teignmouth, Devon, also failed to tell sellers the source of a buyer’s funds, claiming the buyer was using cash.
The sale fell through and the Ombudsman directed a payment of £400.
The Jolly Landlord, on Dunnings Lane in Bulphan, Essex, did not transfer a tenant’s deposit and first month’s rent to the landlord.
The landlord ended the management agreement and asked for the tenancy to be terminated, though the tenancy stayed in place and the landlord had not tried to recover the money directly.
The Ombudsman awarded the tenant £350 for stress and inconvenience.
Lilypad Estates London, on Honor Oak Park in Forest Hill, did not transfer eight months of rent to a landlord and then stopped all contact.
The Ombudsman upheld the complaint in full and ordered the agent to pay £200 plus the missing rent.
All five businesses were referred to the Ombudsman’s Compliance Committee and excluded from the scheme.
Interim ombudsman Lesley Horton (pictured) said: “Expulsion is a last resort and that’s evident in the low numbers.
“We always strive to be very clear and explain the evidence that has led to our decisions and any award we make, both to businesses and to consumers.
“This approach works well, with 99% of businesses complying with our decisions and paying awards when directed.
“We also highlight where agents can improve their service and proactively carry out audits to check that they are following best practice and regulations.”
All relevant bodies, including trading standards and property portals, have been notified.
