PART 5

Housing, estate agents and rentcharges: other changes

Client money protection schemes for property agents

Power to require property agents to join client money protection schemes
133
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 person who engages in English letting agency work within the meaning of section 54, or
  2. 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.
S. 133 in force at 19.3.2018 by S.I. 2018/251, reg. 3(a)