Estate Agents Act 1979

Supervision, enforcement, publicity, etc.U.K.

20 Prohibition of pre-contract deposits in Scotland.U.K.

(1)No person may, in the course of estate agency work in Scotland, seek or accept from any person (in this section referred to as a “prospective purchaser”) who wishes to acquire an interest in land in the United Kingdom a payment which, if made, would constitute a pre-contract deposit or, as the case may be, which constitutes such a deposit.

(2)If, in the course of estate agency work in Scotland, any person receives from a prospective purchaser a payment which constitutes a pre-contract deposit, it shall forthwith be either repaid to the prospective purchaser or paid to such person as the prospective purchaser shall direct.

(3)Failure by any person to comply with subsection (1) or subsection (2) above may be taken into account by the [F1lead enforcement authority] in accordance with section 3(1)(c) above but shall not render that person liable to any criminal penalty nor constitute a ground for any civil claim, other than a claim under subsection (2) above for the recovery of the pre-contract deposit.

(4)This section forms part of the law of Scotland only.

21 Transactions in which an estate agent has a personal interest.U.K.

(1)A person who is engaged in estate agency work (in this section referred to as an “estate agent”) and has a personal interest in any land shall not enter into negotiations with any person with respect to the acquisition or disposal by that person of any interest in that land until the estate agent has disclosed to that person the nature and extent of his personal interest in it.

(2)In any case where the result of a proposed disposal of an interest in land or of such a proposed disposal and other transactions would be that an estate agent would have a personal interest in that land, the estate agent shall not enter into negotiations with any person with respect to the proposed disposal until he has disclosed to that person the nature and extent of that personal interest.

(3)Subsections (1) and (2) above apply where an estate agent is negotiating on his own behalf as well as where he is negotiating in the course of estate agency work.

(4)An estate agent may not seek or receive a contract or pre-contract deposit in respect of the acquisition or proposed acquisition of—

(a)a personal interest of his in land in the United Kingdom; or

(b)any other interest in any such land in which he has a personal interest.

(5)For the purposes of this section, an estate agent has a personal interest in land if—

(a)he has a beneficial interest in the land or in the proceeds of sale of any interest in it; or

(b)he knows or might reasonably be expected to know that any of the following persons has such a beneficial interest, namely,—

(i)his employer or principal, or

(ii)any employee or agent of his, or

(iii)any associate of his or of any person mentioned in sub-paragraphs (i) and (ii) above.

(6)Failure by an estate agent to comply with any of the preceding provisions of this section may be taken into account by the [F2lead enforcement authority] in accordance with section 3(1)(c) above but shall not render the estate agent liable to any criminal penalty nor constitute a ground for any civil claim.

23 Bankrupts not to engage in estate agency work.U.K.

(1)An individual who is [F3made] bankrupt after the day appointed for the coming into force of this section or, in Scotland, whose estate is sequestrated after that day shall not engage in estate agency work of any description except as an employee of another person.

[F4(1A)An individual in respect of whom a debt relief order (under Part 7A of the Insolvency Act 1986) is made shall not engage in estate agency work of any description except as an employee of another person]

(2)The prohibition imposed on an individual by subsection (1) above shall cease to have effect if and when—

(a)the [F5bankruptcy order made] against him is annulled, or, in Scotland, the sequestration of his estate is recalled [F6or reduced]; or

[F7(b)he is discharged from bankruptcy.]

[F8(2A)The prohibition imposed on an individual by subsection (1A) shall cease to have effect if and when—

(a)the debt relief order is revoked for reasons falling within section 251(L)(2)(a) or (c) of the Insolvency Act 1986;

(b)the individual is discharged from all the qualifying debts specified under the debt relief order at the end of the moratorium period applicable to the order; or

(c)the debt relief order is revoked and a period of one year has elapsed beginning with the effective date for the order.]

(3)[F9The references in this section] to employment of an individual by another person does not include employment of him by a body corporate of which he is a director or controller.

(4)If a person engages in estate agency work in contravention [F10of this section] he shall be liable on conviction on indictment or on summary conviction to a fine which on summary conviction shall not exceed the statutory maximum.