Three property firms have been expelled from The Property Ombudsman after failing to pay compensation to landlords and a homebuyer.

One landlord complained about how North Walsham-based letting agent Musgrove & Co handled a residential tenancy. He said the agent refused to transfer a holding deposit to the landlord, and a tenancy agreement contained errors, but no suitable replacement was provided. The firm failed to respond to the formal complaint.

The landlord later contacted the tenants directly and arranged the tenancy, allowing them to move into the property so he could receive rental income.

Musgrove & Co did not provide evidence requested by the Ombudsman during the investigation and the firm was told to pay £300.

Management

Another landlord complained about Coles Property Management, registered as C.P.M (NW) Ltd in Blackpool, about the management of two rental properties, after the firm’s management agreement was terminated and responsibility for the properties transferred to a new agent.

The Ombudsman found that there had been delays by Coles Property Management in transferring tenants’ deposits and forwarding rent for one property which was mistakenly paid to the business instead of the new agent. The Ombudsman also identified service failings around communication and awarded the landlord £100 award for the inconvenience.

Tothill Residential Surveying Ltd, trading as Tothill Residential Surveying, based in Mundon, Essex, was the subject of a complaint from a buyer who had paid £500 for a survey report.

Failures

The complaint related to the survey report not being provided and the agent’s failures to deal adequately with the complainant’s concerns. The Ombudsman awarded £800 in compensation.

Chief Ombudsman Lesley Horton (pictured) says these cases underline the importance of businesses engaging with complaints, cooperating with investigations and paying awards when directed.

“An Ombudsman award is not optional,” she adds. “When a complaint is upheld and compensation is directed, registered businesses are expected to comply with that decision.

"Expulsion is always a last resort. We work with businesses throughout the compliance process to help them meet their obligations and ensure consumers receive the awards they are due.”

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