With effect from 1st April 2019 there is an obligation for all agents to be members of an approved Clients’ Money Protection scheme. Without this cover it will no longer be permissible to operate as a letting agent.
The agent must subscribe to one of the three Government approved provider schemes and must have a client account. The membership certificate must be displayed within the office and on the agent’s website.
The Housing and Planning Act 2016 introduced powers to bring in legislation making membership of an approved or designated clients’ money protection (CMP) scheme mandatory for property agents in the private rented sector.
CMP schemes give landlords and tenants confidence that their money is safe when it is being handled by an agent. Where an agent is a member of a CMP scheme, it enables a tenant or landlord to recover any money held by the agent on that person’s behalf that the agent fails to repay—for example due to misappropriation or insolvency.
Hazells has had this arrangement in place through its membership of the Royal Institution of Chartered Surveyors for many years.
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