Membership rules, obligations and disciplinary

Company obligations

Not all of the property industry is regulated, Principals, Partners and Directors (PPDs) join Propertymark voluntarily to demonstrate transparency and ensure that they (and their company) are at the forefront of developments in the industry.

PPDs are required to regulate all relevant companies for which they are legally responsible. They must provide evidence that their company meets our company obligations during the application process and annually thereafter whilst they are in membership. New applicants will not be accepted into membership until all obligations have been met.

Accountant's Report

An Accountant's Report or financial 'HealthCheck' is required to ensure your company handles client money correctly. Client money is any money held which you are not beneficially entitled to, e.g. tenants' deposits, rent, service charges, arbitration fees etc.

Client Money Protection (CMP)

CMP reimburses landlords and tenants should an agent misappropriate their rent, deposit or other client funds. It became a legal requirement for all agencies handling client money on 1 April 2019. The Tenancy Deposit Scheme (TDS) will offer a £1.50 discount per tenancy deposit if you have CMP through our scheme.

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Company Declaration Form

PPDs will be contacted annually and asked to complete an online Company Declaration Form for every company they are legally responsible for (which operates in a relevant business area). We also ask for a copy of the company's letterhead displaying information as required by the Companies Act 2006, and anyone operating in residential lettings will also need to provide a copy of their Terms of Business and tenancy agreement.

Independent redress scheme

It is a legal requirement that estate and letting agents belong to one of the two Government-approved independent redress schemes. Redress schemes provide fair and reasonable resolutions to disputes with members of the public.

Whilst in membership, PPDs must provide evidence of which scheme they belong to—that goes for auctioneers too. Auctioneers must belong to The Property Ombudsman (TPO), only companies that deal solely in valuations are exempt along with inventory providers. The two Government-approved schemes are:

Information Commissioner's Office (ICO)

The Data Protection (Charges and Information) Regulations 2018 requires every organisation or sole trader who processes personal information to pay a data protection fee to the ICO, unless they are exempt. As part of your Company Obligations, we require your company's ICO registration number.

Money Laundering Regulations 2017

It is a legal requirement for certain businesses to be registered with HMRC for Anti-Money Laundering supervision, this helps ensure compliance with the Money Laundering Regulations 2017. You can check if you need to register your business with HMRC on the Government website. We require confirmation of your registration with HMRC as either a reference number or supporting documentation from HMRC.

Professional indemnity insurance

Professional indemnity insurance, often referred to as PI insurance, covers your company for legal costs and expenses in claims resulting from negligence or breach of professional duty. You must ensure your company has the correct level of cover for your business activities and annual fee income.

The Property Ombudsman Codes of Practice

PPDs must follow The Property Ombudsman (TPO) Codes of Practice. TPO have worked closely with the Chartered Trading Standards Institute (CTSI) to obtain approval of their Codes of Practice.

Late submissions
Late payment of the CMP levy and submission of documentation may be pursued as a disciplinary matter and dealt with outside of the disciplinary procedures. This means that members may not have an opportunity to explain why the delay occurred. However, you will be sent reminders via email and text informing you that something is due.

Late submission in most cases results in a fine of up to £200 for each breach of the documentation requirements (e.g. professional indemnity insurance, Accountant's Report etc). Members who persistently fail to provide payment or documents may have their membership terminated.