Three property businesses have been expelled from The Property Ombudsman after failing to pay compensation awards following complaints from landlords and a homebuyer.
Musgrove & Co, Tothill Residential Surveying and Coles Property Management were removed from the redress scheme after their cases were reviewed by its independent Finance, Performance and Compliance Committee.
The awards ranged from £100 to £800 and followed complaints involving residential lettings, property management and surveying.
The Property Ombudsman says its decisions are binding on registered businesses and warns that firms which ultimately fail to comply can face expulsion.
LETTINGS COMPLAINT
Musgrove & Co, registered as Musco Property Limited and based in North Walsham, Norfolk, was ordered to pay £300 following a landlord complaint over the handling of a residential tenancy.
The complaint included the agent’s refusal to transfer a holding deposit, errors in a tenancy agreement and its failure to respond to a formal complaint.
The Ombudsman also says the firm failed to provide evidence requested during its investigation.
Coles Property Management, registered as C.P.M (NW) Limited and based in Blackpool, was directed to pay £100 following a complaint from a landlord concerning the management of two rental properties.
The Ombudsman identified delays in transferring tenants’ deposits and forwarding rent following the transfer of the properties to another agent, as well as communication failings.
SURVEY REPORT
Tothill Residential Surveying Ltd, based in Mundon, Essex, was the subject of a complaint from a buyer who had paid £500 for a survey report which was not provided.
The Ombudsman directed the business to pay the complainant £800.
Chief Ombudsman Lesley Horton (main picture) says: “An Ombudsman award is not optional. When a complaint is upheld and compensation is directed, registered businesses are expected to comply with that decision.
“Expulsion is always a last resort. We work with businesses throughout the compliance process to help them meet their obligations and ensure consumers receive the awards they are due.
“That only three businesses reached the point of expulsion this quarter demonstrates how rarely that ultimate sanction is required from The Property Ombudsman.”
She adds: “Consumers must be able to trust that redress has real meaning. Where a business ultimately fails to comply, we will take appropriate action to protect consumers and maintain confidence in the scheme.”
