Lesson 2 – Common Third-Party Property Services

2.1 Mortgage brokers

Estate agents may introduce buyers to mortgage brokers for:

• Affordability discussions;
• Agreements in principle;
• Mortgage applications;
• Remortgages; or
• General mortgage advice.

Mortgage advice is regulated activity. MyEstate staff must not provide regulated mortgage advice unless appropriately authorised.

Employees may explain that a broker’s service is available but must not advise a customer that a particular mortgage product is suitable.

2.2 Conveyancers and solicitors

Customers may be introduced to conveyancers or solicitors for:

• Property purchases;
• Property sales;
• Remortgages;
• Lease extensions;
• Transfers of ownership; or
• Other legal work.

The customer must remain free to select their own legal representative.

MyEstate should not imply that using the recommended conveyancer will guarantee:

• Acceptance of an offer;
• Preferential treatment;
• A faster sale;
• A successful transaction; or
• Better treatment from the seller.

2.3 Surveyors

Buyers may be referred to surveyors for:

• Valuations;
• Home surveys;
• Building surveys;
• Damp reports;
• Structural inspections; or
• Specialist investigations.

Staff should accurately describe the provider’s role and avoid suggesting that a particular survey guarantees that a property has no defects.

2.4 Insurance providers

Referrals may involve:

• Buildings insurance;
• Contents insurance;
• Rent guarantee insurance;
• Landlord insurance;
• Legal-expenses insurance;
• Tenant liability products; or
• Home emergency cover.

Insurance sales may be regulated. Employees must not recommend a specific insurance product unless authorised to do so.

2.5 Utility-switching and home-moving services

A customer may be introduced to a business providing:

• Gas or electricity switching;
• Broadband services;
• Water-account notifications;
• Council tax notifications;
• Removal services; or
• Home-moving assistance.

The customer’s details must not be transferred without an appropriate data-protection basis and any required consent.

2.6 Referencing companies

Letting agents may use external companies to conduct:

• Credit checks;
• Employment verification;
• Income checks;
• Previous landlord references;
• Identity checks;
• Affordability assessments; or
• Open-banking checks.

Employees should distinguish between a provider appointed by MyEstate to perform an agency function and a provider being promoted to the customer as an optional paid service.

Any payment requested from a tenant, applicant or guarantor must comply with the Tenant Fees Act 2019 as amended. The existence of a referral arrangement does not make a prohibited payment lawful.

2.7 Inventory providers

A landlord may be introduced to an inventory provider for:

• Check-in reports;
• Check-out reports;
• Schedules of condition;
• Mid-tenancy inspections; or
• Photographic evidence.

Staff should explain who is responsible for the provider’s fee and whether MyEstate receives a financial benefit.

2.8 Maintenance contractors

Property managers may recommend:

• Plumbers;
• Electricians;
• Gas engineers;
• Builders;
• Locksmiths;
• Cleaning companies;
• Gardeners;
• Pest-control businesses; or
• Emergency contractors.

If MyEstate receives commission, a management charge, a mark-up or another benefit, the arrangement should be dealt with transparently.

Staff should also distinguish between:

• A contractor recommended directly to a customer; and
• A contractor appointed by MyEstate under its management authority.

Lesson 2 key point

Referral arrangements can arise across every stage of a sale, letting or managed tenancy—not only through mortgage or conveyancing introductions.