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UK retailing giant Tesco has suspended its online DIY home selling service following a decision by the Office of Fair Trading.
The company had launched its Tesco Property Market site in July offering customers a listing on their website and a For Sale sign for £199. The decision to suspend the site follows an enquiry by the Ombudsman for Estate Agents who contacted the Office of Fair Trading to ask if the Tesco site was operating as an estate agent under the provisions of the 1979 Estate Agency Act. Tesco states that becoming an online estate agent “was never our immediate intention” however the Office of Fair Trading has responded saying that they are to be considered as an estate agent under the act.
Tesco has now suspended the relevant section of its site and offered to refund customers and stated that they are “now reviewing our business with a view to launching a new and exciting on-line estate agency service”. Additionally Tesco has stated that they may be seeking to list properties on existing internet sales portals as a full estate agency and see on reason why, as a fully fledged estate agent, they should not be listed.
A spokesman for the National Association of Estate Agents believes that the decision by the Office of Fair Trading was partly influenced by the possibility that customer could be charged twice if they “find themselves in a situation where a sale was agreed by someone introduced through the property portal, but at the same time they had a contract with another estate agent - therefore they would be liable for two fees."
The stance taken by the office of fair trading is likely to have a significant impact on many online services in the property sector with many being judged to be estate agents under the legislation.
13 October 2007
Author: Katie Morgan
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