Legalize / United Kingdom / Public General Act

Estate Agents Act 1979

Type Public General Act

Publication 1979-04-04

State In force

Department Statute Law Database

Source legislation.gov.uk

Reform history JSON API

Application of Act

Estate agency work.

1

(1) This Act applies, subject to subsections (2) to (4) below to things done by any person in the course of a business (including a business in which he is employed) pursuant to instructions received from another person (in this section referred to as “the client”) who wishes to dispose of or acquire an interest in land—

(a) for the purpose of, or with a view to, effecting the introduction to the client of a third person who wishes to acquire or, as the case may be, dispose of such an interest; and

(b) after such an introduction has been effected in the course of that business, for the purpose of securing the disposal or, as the case may be, the acquisition of that interest;

and in this Act the expression “estate agency work” refers to things done as mentioned above to which this Act applies.

(2) This Act does not apply to things done—

(a) in the course of his profession by a practising solicitor or a person employed by him or by an incorporated practice (within the meaning of the Solicitors (Scotland) Act 1980) or a person employed by it; or

(b) in the course of credit brokerage, within the meaning of the Consumer Credit Act 1974; or

(d) in the course of carrying out any survey or valuation pursuant to a contract which is distinct from that under which other things falling within subsection (1) above are done; or

(e) in connection with applications and other matters arising under the Town and Country Planning Act 1990, the Planning (Listed Buildings and Conservation Areas) Act 1990, Parts 3 to 5 of the Historic Environment (Wales) Act 2023, the Planning (Hazardous Substances) Act 1990 or the Town and Country Planning (Scotland) Act 1997, the Planning (Listed Buildings and Conservation Areas) (Scotland) Act 1997, the Planning (Hazardous Substances) (Scotland) Act 1997 or the Planning (Northern Ireland) Order 1991 Planning Act (Northern Ireland) 2011 .

(3) This Act does not apply to things done by any person—

(a) pursuant to instructions received by him in the course of his employment in relation to an interest in land if his employer is the person who, on his own behalf, wishes to dispose of or acquire that interest; or

(b) in relation to any interest in any property if the property is subject to a mortgage and he is the receiver of the income of it; or

(c) in relation to a present, prospective or former employee of his or of any person by whom he also is employed if the things are done by reason of the employment (whether past, present or future).

(4) This Act does not apply to the following things when done by a person who does no other things which fall within subsection (1) above—

(a) publishing advertisements or disseminating information;

(b) providing a means by which—

(i) a person who wishes to acquire or dispose of an interest in land can, in response to such an advertisement or dissemination of information, make direct contact with a person who wishes to dispose of or, as the case may be, acquire an interest in land;

(ii) the persons mentioned in sub-paragraph (i) can continue to communicate directly with each other.

(5) In this section—

(a) “practising solicitor” means, except in Scotland, a solicitor who is qualified to act as such under section 1 of the Solicitors Act 1974 or Article 4 of the Solicitors (Northern Ireland) Order 1976, and in Scotland includes a firm of practising solicitors;

(b) “mortgage” includes a debenture and any other charge on property for securing money or money’s worth; and

Interests in land.

2

(1) Subject to subsection (3) below, any reference in this Act to disposing of an interest in land is a reference to—

(a) transferring a legal estate in fee simple absolute in possession; or

(b) transferring or creating, elsewhere than in Scotland, a lease which, by reason of the level of the rent, the length of the term or both, has a capital value which may be lawfully realised on the open market; or

(c) transferring or creating in Scotland any estate or interest in land which is capable of being owned or held as a separate interest and to which a title may be recorded in the Register of Sasines;

and any reference to acquiring an interest in land shall be construed accordingly.

(2) In subsection (1)(b) above the expression “lease” includes the rights and obligations arising under an agreement to grant a lease.

(3) Notwithstanding anything in subsections (1) and (2) above, references in this Act to disposing of an interest in land do not extend to disposing of—

(a) the interest of a creditor whose debt is secured by way of a mortgage or charge of any kind over land or an agreement for any such mortgage or charge; or

(b) in Scotland, the interest of a creditor in a heritable security as defined in section 9(8) of the Conveyancing and Feudal Reform (Scotland) Act 1970.

Orders by the lead enforcement authority

Orders prohibiting unfit persons from doing estate agency work.

3

(1) The power of the lead enforcement authority to make an order under this section with respect to any person shall not be exercisable unless the lead enforcement authority is satisfied that that person—

(a) has committed —

(i) an offence involving fraud or other dishonesty or violence, or

(ii) an offence under any provision of this Act, other than section 10(6), section 22(3) or section 23(4), or

(iii) any other offence which, at the time it was committed, was specified for the purposes of this section by an order made by the Secretary of State; or

(b) has committed discrimination in the course of estate agency work; or

(ba) has failed to comply with an undertaking accepted from him under section 156, 159, 163 or 185 of the Digital Markets, Competition and Consumers Act 2024 and given in relation to estate agency work; or

(bb) has failed to comply with an enforcement order under section 156 of the Digital Markets, Competition and Consumers Act 2024 which was made against him in relation to estate agency work; or

(bc) has failed to comply with a requirement imposed by a final infringement notice given under section 182 of that Act in relation to estate agency work; or

(ca) has engaged in estate agency work in relation to residential property in breach of the duty imposed by an order under section 23A(1) below; or

(cb) has failed to comply with any requirement imposed on him under paragraph 14 or 27 of Schedule 5 to the Consumer Rights Act 2015 ; or

(d) has engaged in a practice which, in relation to estate agency work, has been declared undesirable by an order made by the Secretary of State;

and the provisions of Schedule 1 to the Act shall have effect for supplementing paragraphs (a) and (b) above.

(2) Subject to subsection (1) above, if the lead enforcement authority is satisfied that any person is unfit to carry on estate agency work generally or of a particular description it may make an order prohibiting that person—

(a) from doing any estate agency work at all; or

(b) from doing estate agency work of a description specified in the order;

and in determining whether a person is so unfit the lead enforcement authority may, in addition to taking account of any matters falling within subsection (1) above, also take account of whether, in the course of estate agency work or any other business activity, that person has engaged in any practice which involves breaches of a duty owed by virtue of any enactment, contract or rule of law and which is material to his fitness to carry on estate agency work.

(3) For the purposes of paragraphs (ba) to (d) of subsection (1) above,—

(a) anything done by a person in the course of his employment shall be treated as done by his employer as well as by him, whether or not it was done with the employer’s knowledge or approval, unless the employer shows that he took such steps as were reasonably practicable to prevent the employee from doing that act, or from doing in the course of his employment acts of that description; and

(b) anything done by a person as agent for another person with the authority (whether express or implied, and whether precedent or subsequent) of that person shall be treated as done by that other person as well as by him; and

(c) anything done by a business associate of a person shall be treated as done by that person as well, unless he can show that the act was done without his connivance or consent.

(4) In an order under this section the lead enforcement authority shall specify as the grounds for the order those matters falling within paragraphs (a) to (d) of subsection (1) above as to which it is satisfied and on which, accordingly, it relies to give it power to make the order.

(5) If the lead enforcement authority considers it appropriate, it may in an order under this section limit the scope of the prohibition imposed by the order to a particular part of or area within the United Kingdom.

(6) An order under paragraph (a)(iii) or paragraph (d) of subsection (1) above—

(a) shall be made by statutory instrument;

(b) shall be laid before Parliament after being made; and

(c) shall cease to have effect (without prejudice to anything previously done in reliance on the order) after the expiry of the period of twenty-eight days beginning with the date on which it was made unless within that period it has been approved by a resolution of each House of Parliament.

(7) In reckoning for the purposes of subsection (6)(c) above any period of twenty-eight days, no account shall be taken of any period during which Parliament is dissolved or prorogued or during which both Houses are adjourned for more than four days.

(8) A person who fails without reasonable excuse to comply with an order of the lead enforcement authority under this section shall be liable on conviction on indictment or on summary conviction to a fine which on summary conviction shall not exceed the statutory maximum.

Warning orders.

4

(1) If the lead enforcement authority is satisfied that any of subsections (1A), (1B) or (1C) apply in relation to a person it may by order notify that person that it is satisfied of the matters mentioned in that subsection.

(1A) This subsection applies in relation to a person if—

(a) in the course of estate agency work, he has engaged in conduct falling within paragraph (a), (b), (c), (ca) or (cb) of section 3(1); and

(b) were he to engage again in any conduct falling within that paragraph, the lead enforcement authority would consider him unfit and proceed to make a prohibition order.

(1B) This subsection applies in relation to a person if—

(a) in the course of estate agency work, he has engaged in conduct constituting a failure to comply with—

(i) an undertaking mentioned in section 3(1)(ba); or

(ii) an enforcement order mentioned in section 3(1)(bb); and

(b) were he to fail again to comply with that undertaking or order by engaging in the same or similar conduct, the lead enforcement authority would consider him unfit and proceed to make a prohibition order.

(1C) This subsection applies in relation to a person if—

(a) in the course of estate agency work, he has engaged in a practice mentioned in section 3(1)(d); and

(b) were he to engage again in that practice, the lead enforcement authority would consider him unfit and proceed to make a prohibition order.

(2) An order under this section shall state whether, in the opinion of the lead enforcement authority, further conduct as mentioned in subsection (1A)(b) or (1B)(b) or engaging again in the practice specified in the order, as the case may be, is addressed unfit to carry on estate agency work generally or estate agency work of a description specified in the order.

(3) If, after an order has been made under this section, the person to whom it is addressed engages in further conduct as mentioned in subsection (1A)(b) or (1B)(b) or engages again in the practice specified in the order, as the case may be, in accordance with subsection (2) above; and the lead enforcement authority may proceed to make an order under section 3 above accordingly.

(4) In this section “unfit” means unfit as mentioned in subsection (2) of section 3 and “prohibition order” means an order under that section.

Supplementary provisions as to orders under sections 3 and 4.

5

(1) The provisions of Part I of Schedule 2 to this Act shall have effect—

(a) with respect to the procedure to be followed before an order is made by the lead enforcement authority under section 3 or section 4 above; and

(b) in connection with the making and coming into operation of any such order.

(2) Where an order is made by the lead enforcement authority under section 3 or section 4 above against a partnership, it may, if the lead enforcement authority thinks it appropriate, have effect also as an order against some or all of the partners individually, and in such a case the order shall so provide and shall specify the names of the partners affected by the order.

(3) Nothing in section 113 of the Equality Act 2010 (proceedings) or Article 62 of the Sex Discrimination (Northern Ireland) Order 1976 or Article 51 of the Race Relations (Northern Ireland) Order 1997 (restriction of sanctions for breaches of ... those Orders) shall be construed as applying to the making of an order by the lead enforcement authority under section 3 above.

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) In any case where—

(a) an order of the lead enforcement authority under section 3 above specifies as grounds for the order the fact that the person concerned committed discrimination by reason of the existence of any such finding or notice as is referred to in paragraph 2 of Schedule 1 to this Act, and

(b) the period expires at the end of which, by virtue of paragraph 3 of that Schedule, the person concerned would no longer be treated for the purposes of section 3(1)(b) above as having committed discrimination by reason only of that finding or notice,

then, unless the order also specifies other grounds which remain valid, the order shall cease to have effect at the end of that period.

Revocation and variation of orders under sections 3 and 4.

6

(1) On an application made to it by the person in respect of whom the lead enforcement authority has made an order under section 3 or section 4 above, the lead enforcement authority may revoke or vary the order.

(2) An application under subsection (1) above—

(a) shall state the reasons why the applicant considers that the order should be revoked or varied;

(b) in the case of an application for a variation, shall indicate the variation which the applicant seeks; and

(3) If the lead enforcement authority decides to accede to an application under subsection (1) above, it shall give notice in writing of its decision to the applicant and, upon the giving of that notice, the revocation or, as the case may be, the variation specified in the application shall take effect.

(4) The lead enforcement authority may decide to refuse an application under subsection (1) above—

(a) where it relates to an order under section 3 above, if it considers that the applicant remains unfit to carry on any estate agency work at all or, as the case may be, estate agency work of the description which is prohibited by the order; and

(b) where it relates to an order under section 4 above, if it considers that the applicant may engage in further conduct as mentioned in subsection (1A)(b) or (1B)(b) of that section or engage again in the practice specified in the order, as the case may be. .

(5) If, on an application under subsection (1) above, the lead enforcement authority decides that—

(a) it cannot accede to the application because it considers that the applicant remains unfit to carry on any estate agency work at all in a particular part of or area within the United Kingdom or remains unfit to carry on estate agency work of a particular description (either throughout the United Kingdom or in a particular part of or area within it) or, as the case may be, remains likely to fail to comply with a relevant statutory obligation or to engage in a particular practice, but

(b) the order to which the application relates could, without detriment to the public, be varied in favour of the applicant,

the lead enforcement authority may make such a variation accordingly.

(6) The provisions of Part II of Schedule 2 to this Act shall have effect in relation to any application to the lead enforcement authority under subsection (1) above and the provisions of Part I of that Schedule shall have effect—

(a) with respect to the procedure to be followed before the lead enforcement authority comes to a decision under subsection (4) or subsection (5) above; and

(b) in connection with the making and coming into operation of such a decision.

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Appeals.

7

(1) A person who receives notice under paragraph 9 of Schedule 2 to this Act of—

(a) a decision of the lead enforcement authority to make an order in respect of him under section 3 or section 4 above, or

(b) a decision of the lead enforcement authority under subsection (4) or subsection (5) of section 6 above on an application made by him,

may appeal against the decision to the First-tier Tribunal.

(2) On an appeal under subsection (1) above the First-tier Tribunal may give such directions for disposing of the appeal as it thinks just... .

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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