Estate agents – no certificate risks no commission

If you are an agent struggling to get your current fidelity fund certificate out of the Estate Agents Affairs Board, be aware that a recent Supreme Court of Appeal judgment highlights a very significant danger for you.

But first the good news - even though the legislation provides that "no estate agent shall be entitled to any remuneration or other payment in respect of or arising from the performance of any act [of an estate agent] unless at the time of the performance of the act a valid fidelity fund certificate has been issued to ... such estate agent", you can keep commission if it has already been paid over - the seller cannot reclaim it.

The bad news is that, if the commission hasn't been paid yet, you will find it very difficult to enforce a claim to it - because the court held further that an agent without a valid certificate "will be prevented from enforcing his or her claim" and "is prohibited from enforcing a claim for remuneration that has become due". Moreover, claiming "remuneration" in such a case is actually a statutory offence.

Don't delay - get your fidelity fund certificate now!
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