From 1st April 2019, all Letting Agents will be required to have Client Money Protection Insurance.
If you take or hold any money from Tenants or on behalf of Landlords you will not be able to trade without CMP. You will also be required to have a statutory client’s account. The fine for trading without CMP is up to £30,000.
Requirement to belong to a client money protection scheme
A property agent who holds client money must be a member of an approved or designated Client Money Protection scheme. The requirement does not only relate to deposits but also rent, maintenance monies etc.
The agent will be required to display their CMP certificate in each office in England which deals face to face with customers in a place where the certificate is likely to be seen. The certificate must also be published on their website page and must be provided free of charge to any person requiring it. The fine for not complying with these transparency requirements is up to £5000.
The Government will shortly confirm a list of providers which are approved. This will likely be the industry bodies such as ARLA, UKALA, NALS, RICS. If your agent is not a member of any of the approved providers and you are unable to identify whether they have the relevant CMP in place, then you need to clarify this with them as soon as possible. If you have any questions or concerns please don’t hesitate to contact your local Northwood office, we will be more than happy to help.
Should you have any questions or concerns, your local Northwood office will be more than happy to help. You can find their contact details using office finder here.