The investigation revealed unscrupulous practices by some estate agents in England, raising serious concerns for home buyers and sellers during one of the most significant financial transactions of their lives. 

At ESPC, alongside our 130 solicitor estate agent member firms, we value openness, honesty and clear communication – qualities that were notably absent in the cases highlighted.  However, these examples do not reflect the entire estate agent market, particularly not solicitor estate agents, who are regulated by the Law Society of Scotland.

This regulation provides a robust framework for ethical standards and client protection.  

The investigation highlighted concerns with overvaluing, with agents inflating prices to win the instruction, and clear conflicts of interest by the agents, prioritising commissions and additional sales opportunities over the interest of sellers. Conditional selling was also exposed. This is where offers from buyers not using the selling agents mortgage broker are prejudiced against. There were clear cases where commission was prioritised over sellers’ interests. 

Most sellers in Scotland choose a solicitor estate agent to manage the entire transaction —a practice we strongly advocate. This ensures that the sellers’ best interests are prioritised throughout the process and mitigates many of the issues raised in the investigation, as both Buyers and sellers are each represented by their own legal professionals who are duty-bound to act in their clients’ best interests.  Sellers also benefit from a partner who understands the full scope of the transaction, from the local market, marketing to conveyancing and completion, offering greater protection, clarity, and service.  

I’ve been speaking with Laura Walker from ESPC member firm Deans Solicitors & Estate Agents LLP on this. She said: “Solicitor estate agents are regulated by the Law Society of Scotland, whilst estate agents do not have the same level of regulation. Regulation provides the public better protection throughout the whole process of both buying and selling a property. Solicitors maintain professional practices held to the highest of standards, who at all times must act in the best interests of their clients.  

“Selecting a solicitor estate agent means you’re getting expert legal advice and a comprehensive, start-to-finish service — all under one roof, backed by the Law Society of Scotland’s rigorous regulatory framework.” 

There are additional measures we recommend to prevent such unethical practices altogether: 

There were many recommendations in the ROPA report which, if introduced, would mitigate a number of these risks. This introduces the concept of an independent property-agent regulator, something which is currently missing. It also centres on a single, mandatory and legally enforceable Code of Practise for property agents and ensuring that there are minimum entry requirements and continuous professional development for property agents, again something that currently is not mandatory.

We’ve been taking strides with this at ESPC, with the introduction of the SPC Property Practice Certification which has been developed with the Law Society of Scotland. 

Clarity on valuations should also be provided. How has that figure been reached? Through the ESPC Charter, ESPC firms are already well adapt at doing this.

A further roll out of the Scottish model should also be considered. Offers should be submitted via a third party to the selling agent. This ensures that there is no conflict of interest between buyers, sellers and commission. 

We encourage home buyers and sellers to choose solicitor estate agents for a safer, more transparent property journey.