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Are you acting as an Agent but didn’t know it?

Under Section 46 of the Housing (Scotland) Act 2014 (“the 2014 Act’) Scottish Ministers are allowed to set out a code of practise that requires all letting agents to comply with a new Code of Practice, professional indemnity arrangements and client money protection, among other things.

The Code forms part of a broader regulatory framework for letting agents, which has a few key features as follows:

  • a mandatory register for letting agents with an associated ‘fit and proper’ person test;
  • powers for Scottish Ministers to set training requirements that must be met before an applicant can be accepted on to the register;

  • a means of redress for breaches of the Code to the First-tier Tribunal for landlords and tenants; and

  • powers for Scottish Ministers to obtain information, and powers of inspection to help them monitor compliance.

The Code applies to every person who carries out letting agency work in Scotland and full details can be found here.  However what this will mean in practise is that if a private individual is managing a property that does not belong to them – such as a parent looking after their child’s property – they are in fact operating as an agent and should therefore be applying to the new register (2018), meeting the new training requirements and pass the ‘fit and proper’ person test.  

Chapmans are proud to be among the first agents to go through the training.  The training we have elected to undertake involves 5 full days of training and 3 written assessments.  If you think you may be affected by this please call us to find out more about what the impact will be for you.

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