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  4. Society backs attempt to devolve estate agency regulation

Society backs attempt to devolve estate agency regulation

6th July 2015 | government-administration , professional regulation

Regulation of estate agency should be devolved to the Scottish Parliament in the interests of better consumer protection, the Law Society of Scotland said today.

The call comes ahead of the final committee session on the Scotland Bill in the House of Commons, in which Liberal Democrat MP Alistair Carmichael will move an amendment that would achieve this.

With this additional power, the Society argues, the Scottish Parliament could create law that is more closely aligned to the Scottish legal system. It could also help avoid unnecessary bureaucracy and increased costs for new forms of legal services providers carrying out estate agency work.

In evidence to the Smith Commission last year, the Society argued strongly for estate agency to be devolved, highlighting the different practice of law in Scotland. The subject did not feature in the Commission's report.

Christine McLintock, the Society's President, said: “Conveyancing law and the property market in Scotland operate quite differently from the rest of the UK. There is also a far greater practice of solicitors carrying out estate agency work, providing an integrated service to those with property to sell or rent.

“Legislation passed by the Scottish Parliament in 2010 allows for new forms of solicitor and non-solicitor owned legal practices. We hope to become a regulator of these new firms by the end of this year. However, the 2010 Act was unable to allow approved regulators of these new providers to regulate their estate agency work alongside legal services.

“It means these new providers would be regulated by one regulator for legal services and regulated by another for their estate agency work. This all risks unnecessary bureaucracy for these new providers as they have to work to the requirements of multiple regulators. It also risks increased costs for consumers and creating a complex and confusing system.

“By devolving the regulation of estate agency to the Scottish Parliament, the law could be more easily changed to allow the same regulator to regulate estate agency and legal services, like conveyancing, on a more consistent basis.”

 

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