PART 5Housing, estate agents and rentcharges: other changes

Client money protection schemes for property agents

133Power to require property agents to join client money protection schemes

1

The Secretary of State may by regulations require a property agent to be a member of—

a

a client money protection scheme approved by the Secretary of State for the purpose of the regulations, or

b

a government administered client money protection scheme that is designated by the Secretary of State for the purpose of the regulations.

2

The regulations may impose requirements about the nature of the membership that a property agent must obtain (for example, by requiring a property agent to obtain membership that results in a particular level of compensation being available).

3

The regulations shall—

a

require a property agent to obtain a certificate confirming the property agent's membership of the scheme;

b

require the property agent to display or publish the certificate in accordance with the regulations;

c

require the property agent to produce a copy of the certificate, on request, in accordance with the regulations.

4

In this section—

  • “client money protection scheme” means a scheme which enables a person on whose behalf a property agent holds money to be compensated if all or part of that money is not repaid in circumstances in which the scheme applies;

  • “government administered client money protection scheme” means a client money protection scheme that is administered by or on behalf of the Secretary of State;

  • “property agent” means—

    1. a

      a person who engages in English letting agency work within the meaning of section 54, or

    2. b

      a person who engages in English property management work within the meaning of section 55,

    other than a person who engages in that work in the course of the person's employment under a contract of employment.