The Property Redress Scheme – Do I need to join the PRS?
The PRS or Property Redress Scheme is a government authorised redress scheme and it is a legal requirement for all lettings, property management and sourcing agents to a member of a redress scheme.
So, if you are an agent, in a word YES, you need to join a Redress Scheme. But, before you run off and sign up, it’s important to understand more about these schemes and that they will not help execute your processes and procedures.
Who are the PRS (Property Redress Scheme) & TPO?
The PRS or Property Redress Scheme is not the only official body. You may also have heard of The Property Ombudsman or TPO which is very similar.
The Property Redress Scheme (PRS) is a regulatory organisation that serves both public and private entities. Ultimately owned by the Hamilton Fraser group, a large insurer, the PRS and the TPO are the 2 redress schemes currently operating in the UK.
These regulatory bodies oversee the processes and professionalism of all agents in the property industry. Their remit is to set out policy procedures, processes and advice so that tenants, purchasers and investors can have confidence that they are dealing with a reputable agent that adheres to industry standards.
What powers do the Property Redress Scheme & TPO have?
The PRS and TPO have limited powers and can only assist “after the fact”. They help customers who have had difficulty with agents operating unprofessionally after the event has taken place. This means that customers have to initiate the claim for the regulatory bodies to act and help them. This, therefore, means that customers are not necessarily successful, and the results of any outcome can take many months if not years.
They have the power to fine and/or expel any agent that has failed to adhere to the regulations.
How can you avoid the need for redress through the schemes?
In an ideal world customers, tenants, investors and agents in the property industry would be able to control and resolve problems/situations before they reached a stage requiring intervention e.g. agent fees going missing.
So, is there any way to protect agents and their clients?
Yes. This is where Sourcing Investments have taken a stance to completely change how investors and customers operate with agents in the property industry.
We have invested in technology to create a transparent, controlled marketplace to protect not only investors and purchasers but also the agents.
This gives agents and investors confidence to deal globally knowing that there are layers of legal as well as fund protection. To date, we have facilitated over £55 million worth of property transactions in the UK.
And there’s more. We recently released a fully integrated Compliance Vault for agents. This solves a compliance headache that has plagued the industry for years.
It includes all your registrations, including the PRS – Property Redress Scheme as well as HMRC, ICO, AML, GDPR, Compliance Documentation and comprehensive Professional Indemnity Insurance.
By operating through the Sourcing Investments Global Platform and Compliance Vault, you are giving yourself the best level of protection, the least amount of hassle and with our on-hand power teams you’ll hopefully never need to use a redress scheme.
Our goal was to solve the issues presented by ever-changing regulations and compliance so that you could get back to what you do best, finding amazing properties and making money.
Should I join the Compliance Vault or PRS?
Well, I think you know my answer!
What I would say is… For agents, the PRS advises processes and procedures. But does not help them facilitate and execute these on a day-to-day basis for best practice.
Here at Sourcing investments, we will help you to get your procedures and processes set up. Then combined with the agent platform you’ll have all the tools and experts you’ll ever need in one place. We have also put that power in the palm of your hand so you can manage your business on the go in the SINC App. Now you can release an escrow payment for a refurbishment whilst you a viewing a property.
As an agent, if any of this resonates with you, please do not hesitate to contact us. Our team will be happy to discuss what the Compliance Vault and Agent Platform can do for you and your business.
Right now there are thousands of international and UK investors who want to buy your properties.
Let’s grow your business and make this year the best ever!
Register in less than 60 seconds ↓
https://sourcinginvestments.co.uk/agents
Thanks for reading
Chris Dowty
CEO, Sourcing Investments
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