New Regulations for Tenants and Landlords…
Is your money protected?
New regulations come into force with effect from the 1st April 2019.
The regulations are designed to protect both landlords’ and tenants’ money which is handled by private residential property agents. By the 1st April 2019, ALL private residential property agents will have to sign up to a Government approved scheme. Failure to do so could result in fines of up to £30,000.
What is the Client Money Protection Scheme?
The Client Money Protection Scheme will allow both landlords and tenants to be compensated if their money, which an Agent handles, is not repaid. The scheme must provide compensation of at least the amount of client money being held.
Membership of such schemes has previously been voluntary. However in an attempt to boost consumer confidence, and to ensure that both landlords and tenants are adequately protected, regardless of who the property agent is, the scheme will now be mandatory.
Property agents will be required to not only join an approved scheme; but also display in its’ premises a certificate of the scheme joined. They must also publish a copy of the certificate on their website.
A failure to display the certificate could also result in a fine of £5,000. Agents must also notify their clients of their scheme membership.
If you’d like any further advice on the topic, please do get in touch either via telepone on 01332 364436, or via email on r.delluongo@timms-law.com
You can also find more information about the new Government regulations on the Government website. There is also a whole host of information on conveyancing and the surronding topics on the Conveyancing Page of our website too.