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Estate Agents Act 1999


Published: 2012-09-01

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Estate Agents Act 1999

c i e
AT 7 of 1999

ESTATE AGENTS ACT 1999

Estate Agents Act 1999 Index


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c i e
ESTATE AGENTS ACT 1999

Index Section Page

PART 1 – FALSE AND MISLEADING STATEMENTS ABOUT

PROPERTY 5

1 Offence of property misdescription ............................................................................. 5
2 Enforcement ..................................................................................................................... 6
3 Due diligence defence .................................................................................................... 6
PART 2 – AMENDMENT OF ESTATE AGENTS ACT 1975 7

4 Amendment of s 11 of 1975 Act .................................................................................... 7
5 Amendment of Sch 2 to 1975 Act.................................................................................. 9
PART 3 – GENERAL 11

6 Interpretation ................................................................................................................. 11
7 Short title, construction and commencement ........................................................... 11
SCHEDULE 13

ENFORCEMENT FOR PURPOSES OF PART 1 13
ENDNOTES 17

TABLE OF LEGISLATION HISTORY 17
TABLE OF RENUMBERED PROVISIONS 17
TABLE OF ENDNOTE REFERENCES 17

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c i e
ESTATE AGENTS ACT 1999

Received Royal Assent: 13 July 1999
Passed: 13 July 1999
Commenced: Not operative
AN ACT
to prohibit the making of false or misleading statements about
property matters in the course of business as an estate agent; to amend the
Estate Agents Act 1975; and for connected purposes.
PART 1 – FALSE AND MISLEADING STATEMENTS ABOUT

PROPERTY

1 Offence of property misdescription

(1) Where a false or misleading statement about a prescribed matter is made in
the course of an estate agency business or a property development business,
otherwise than in providing conveyancing services, the person by whom the
business is carried on shall be guilty of an offence under this section.
(2) Where the making of the statement is due to the act or default of an
employee the employee shall be guilty of an offence under this section; and
the employee may be proceeded against and punished whether or not
proceedings are also taken against his employer.
(3) A person guilty of an offence under this section shall be liable —
(a) on summary conviction to a fine not exceeding £5,000; and
(b) on conviction on information to a fine.
(4) No contract shall be void or unenforceable, and no right of action in civil
proceedings in respect of any loss shall arise, by reason only of the
commission of an offence under this section.
(5) For the purposes of this section —
(a) ‘false’ means false to a material degree;
(b) a statement is misleading if (though not false) what a reasonable person
may be expected to infer from it, or from any omission from it, is false;
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(c) a statement may be made by pictures or any other method of signifying
meaning as well as by words and, if made by words, may be made orally
or in writing;
(d) a prescribed matter is any matter relating to land which is specified in an
order made by the Board;1
(e) a statement is made in the course of an estate agency business if (but
only if) the making of the statement is a thing done as mentioned in
paragraphs (a) to (c) of section 15(1) of the Estate Agents Act 1975 (in
this Act referred to as ‘the 1975 Act’) and that Act either applies to it or
would apply to it but for paragraph (iii) of that section (exception for
things done in the course of profession by a practising advocate);
(f) a statement is made in the course of a property development business if
(but only if) it is made —
(i) in the course of a business (including a business in which the
person making the statement is employed) concerned wholly or
substantially with the development of land; and
(ii) for the purpose of, or with a view to, the sale of land consisting of
or including a building, or a part of a building, constructed or
renovated in the course of the business;
(g) ‘conveyancing services’ means the preparation of any transfer,
conveyance, writ, contract or other document in connection with the sale
or acquisition of land, and services ancillary to that, but does not include
anything done as mentioned in section 15(1)(a) of the 1975 Act.
(6) Any reference in this section to the sale of land has the same meaning as in
section 15 of the 1975 Act.
(7) An order under subsection (5)(d) shall be laid before Tynwald as soon as
practicable after it is made, and if Tynwald at the sitting at which the order
is laid or at the next following sitting fails to approve it, the order shall
cease to have effect.
2 Enforcement

The Schedule (which makes provision for enforcement) shall have effect.
3 Due diligence defence

(1) In proceedings against a person for an offence under section 1 it shall be a
defence for him to show that he took all reasonable steps and exercised all
due diligence to avoid committing the offence.
(2) A person shall not be entitled to rely on the defence provided by
subsection (1) by reason of his reliance on information given by another
unless he shows that it was reasonable in all the circumstances for him to
have relied on the information, having regard in particular —
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(a) to the steps which he took, and those which might reasonably have been
taken, for the purpose of verifying the information, and
(b) to whether he had any reason to disbelieve the information.
(3) Where in any proceedings for an offence under section 1 the defence
provided by subsection (1) involves an allegation that the commission of the
offence was due —
(a) to the act or default of another; or
(b) to reliance on information given by another,
the person shall not, without the leave of the court, be entitled to rely on the
defence unless he has served a notice under subsection (4) on the person
bringing the proceedings not less than 7 clear days before the hearing of the
proceedings.
(4) A notice under this subsection shall give such information identifying or
assisting in the identification of the person who committed the act or
default, or gave the information, as is in the possession of the person
serving the notice at the time he serves it.
PART 2 – AMENDMENT OF ESTATE AGENTS ACT 1975

4 Amendment of s 11 of 1975 Act

For section 11(3) of the 1975 Act substitute —
‘(3) Subject to section 12 of this Act, a person shall not carry on business as
an estate agent unless, in every office where the business is carried on, it
is carried on under the supervision and management of an authorised
practitioner who is designated in respect of that office by the person
carrying on the business.
(3A) An authorised practitioner may be designated under subsection (3) in
respect of more than one office.
(3B) The name of an authorised practitioner who is designated under
subsection (3) in respect of an office shall be displayed in a prominent
position at that office in letters which are not less than 8 cm in height.
(3C) Whenever an authorised practitioner who is designated under
subsection (3) in respect of an office is for any reason temporarily unable
to supervise and manage the business carried on at that office for any
period exceeding 21 days, the person who is carrying on the business
shall appoint another authorised practitioner to supervise and manage
the business carried on at that office in place of the designated
practitioner.
(3D) Whenever an authorised practitioner who is designated under
subsection (3) in respect of an office is for any reason temporarily unable
to supervise and manage the business carried on at that office for any
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period not exceeding 21 days, the person who is carrying on the business
shall cause the business carried on at that office to be supervised and
managed by a suitable person in place of the designated authorised
practitioner.
(3E) In determining whether a person is a suitable person for the purposes of
section (3D), account shall be taken of —
(a) the nature of the services provided to customers at the office in
question;
(b) the qualifications and experience which a reasonable
businessman would consider necessary for the proper
management and supervision of the business carried on at that
office; and
(c) whether, in all the circumstances, the person concerned is
otherwise a fit and proper person.
(3F) A person who is carrying on business as an estate agent shall notify the
registrar in the prescribed form within 72 hours of the happening of any
of the following events —
(a) the designation of an authorised practitioner under
subsection (3);
(b) the termination of any such designation;
(c) the appointment of an authorised practitioner under
subsection (3C):
a notification under this paragraph may include notice of the date
on which the appointment will terminate; or
(d) the termination of any such appointment if not already notified
under paragraph (c).
(3G) A person who carries on business as an estate agent shall cause to be
compiled and maintained a register showing in respect of each office
where the business is carried on —
(a) the name of the authorised practitioner designated under
subsection (3) and the date of designation;
(b) the date of termination of any such designation;
(c) the name of an authorised practitioner appointed under
subsection (3C) and the date of appointment;
(d) the date of termination of any such appointment;
(e) the name of any person who, in accordance with subsection (3D),
supervises and manages the business in place of a designated
authorised practitioner.
(3H) The person who carries on business as an estate agent shall —
(a) cause the register to be kept at the principal office in the Island of
the business concerned; and
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(b) produce the register to the registrar when required by him.
(3I) Where an offence by a person carrying on business as an estate agent
was committed with the consent or connivance of, or was attributable to
any neglect on the part of, any authorised practitioner designated under
subsection (3) or appointed under subsection (3C), or any person
purporting to act as such, that practitioner or person shall be guilty of
the like offence as the person carrying on the business and shall be
punishable accordingly.’
5 Amendment of Sch 2 to 1975 Act

(1) In Schedule 2 to the 1975 Act, after paragraph 3 insert —
‘3A. Without prejudice to paragraph 3, prescribing offences under any

other enactment which will constitute conduct which is contrary

to the public interest and amount to disgraceful conduct in a

person’s practice as an estate agent.

3B. The conduct of estate agency business carried on by authorised

practitioners and bodies corporate.

3C. The prohibition of an authorised practitioner from —

(a) carrying on business as a sole practitioner;
(b) being a director of a body corporate which carries on business as
an estate agent; or
(c) being the manager of an estate agency business carried on by a
body corporate,
except in accordance with such conditions as may be specified in the
rules.
3D. The form and content of advertisements in respect of estate agency

business.

3E. The form and content of particulars relating to land which are

issued by persons carrying on business as estate agents.

3F.

(1) The disclosure of a personal interest of a person carrying on business as
an estate agent or of any of his employers, principals, employees, agents
or associates in —
(a) land which is the subject of negotiations;
(b) the acquisition or sale of land;
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(c) the proceeds of the sale or acquisition of land,
and the time at which and the manner in which such disclosure must be
made.
(2) The prohibition of authorised practitioners or bodies corporate carrying
on business as estate agents from —
(a) entering into negotiations; or
(b) receiving any description of deposit,
in relation to the sale or acquisition of land unless rules under sub-
paragraph (1) have been complied with.
(3) Defining the expression ‘associate’ for the purposes of rules made under
this paragraph.
3G. The information which shall or shall not be given to a prospective

purchaser of land in relation to, or to the existence or otherwise

of, —

(a) offers which have been made or are purported to have been made
or which may be made by other persons; or
(b) the existence or status of such persons.
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3H. Requiring persons carrying on business as estate agents to give

information to a vendor or prospective vendor of land as to offers

received in respect of the purchase of the land within such period

and in such manner and detail as may be prescribed.

3I. The information which must be given to a purchaser or prospective

purchaser of land or the vendor or prospective vendor in relation

to services (other than estate agency services) offered by persons

carrying on business as estate agents either on his own behalf or

on behalf of another.

3J. Prohibiting discrimination against prospective purchasers of land

who do not or are unlikely to accept such services as are referred

to in paragraph 3I.

3K. Additional information which a person carrying on business as an

estate agent must give to prospective clients before undertaking

any estate agency work on their behalf.

3L. Regulating the use of signs and advertisements which are to be

placed in or on land to be sold.’.

PART 3 – GENERAL

6 Interpretation

In this Act —
“1975 Act” has the meaning given by section 1(5)(e);
“Board” means the Isle of Man Office of Fair Trading;2
“Department” [Repealed]3
7 Short title, construction and commencement

(1) This Act may be cited as the Estate Agents Act 1999 and the Estate Agents
Act 1975 and this Act may be cited together as the Estate Agents Acts
1975 and 1999.
(2) This Act shall be construed as one with the Estate Agents Act 1975.
(3) This Act shall come into operation on such day as may be appointed by
order made by the Board and different days may be so appointed for
different provisions and for different purposes.4

Estate Agents Act 1999 Schedule



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SCHEDULE

ENFORCEMENT FOR PURPOSES OF PART 1

Section 2
Enforcement authority
1. The Board is the enforcement authority for the purposes of Part 1 of this Act.5

Powers of officers of the Board6

2. (1) If a duly authorised officer of the Board has reasonable grounds for
suspecting that an offence under section 1 has been committed, he may —
(a) require a person carrying on or employed in a business to
produce any book or document relating to the business, and take
copies of it or any entry in it, or
(b) require such a person to produce in a visible and legible
documentary form any information so relating which is contained
in a computer, and take copies of it,
for the purpose of ascertaining whether such an offence has been committed.7

(2) Such an officer may inspect any goods for the purpose of ascertaining
whether such an offence has been committed.
(3) If such an officer has reasonable grounds for believing that any
documents or goods may be required as evidence in proceedings for such an offence,
he may seize and detain them.
(4) An officer seizing any documents or goods in the exercise of his power
under sub-paragraph (3) shall inform the person from whom they are seized.
(5) The powers of an officer under this paragraph may be exercised by him
only at a reasonable hour and on production (if required) of his credentials.
(6) Nothing in this paragraph —
(a) requires a person to produce a document if he would be entitled
to refuse to produce it in proceedings in a court on the ground
that it is the subject of legal professional privilege; or
(b) authorises the taking possession of a document which is in the
possession of a person who would be so entitled.
3. (1) A duly authorised officer of the Board may, at a reasonable hour and on
production (if required) of his credentials, enter any premises for the purpose of
ascertaining whether an offence under section 1 has been committed.8

(2) If a justice of the peace is satisfied —
Schedule
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(a) that any relevant books, documents or goods are on, or that any
relevant information contained in a computer is available from,
any premises, and that production or inspection is likely to
disclose the commission of an offence under section 1, or
(b) that such an offence has been, is being or is about to be committed
on any premises,
and that any of the conditions specified in sub-paragraph (3) is met, he may by warrant
under his hand authorise an officer of the Board to enter the premises, if need be by
force.9

(3) The conditions referred to in sub-paragraph (2) are —
(a) that admission to the premises has been or is likely to be refused
and that notice of intention to apply for a warrant under that sub-
paragraph has been given to the occupier,
(b) that an application for admission, or the giving of such a notice,
would defeat the object of the entry,
(c) that the premises are unoccupied, and
(d) that the occupier is temporarily absent and it might defeat the
object of the entry to await his return.
(4) In sub-paragraph (2), ‘relevant’, in relation to books, documents, goods
or information, means books, documents, goods or information which, under
paragraph 2, a duly authorised officer may require to be produced or may inspect.
(5) A warrant under sub-paragraph (2) may be issued only if the justice of
the peace is satisfied as required by that sub-paragraph by written information on oath.
(6) A warrant under sub-paragraph (2) shall continue in force for a period of
one month.
(7) An officer entering any premises by virtue of this paragraph may take
with him such other persons as may appear to him necessary.
(8) On leaving premises which he has entered by virtue of a warrant under
sub-paragraph (2), an officer shall, if the premises are unoccupied or the occupier is
temporarily absent, leave the premises as effectively secured against trespassers as he
found them.
(9) In this paragraph ‘premises’ includes any place (including any vehicle,
ship or aircraft) except premises used only as a dwelling.
Obstruction of officers
4. (1) A person who —
(a) intentionally obstructs an officer of the Board acting in pursuance
of this Schedule,10

(b) without reasonable excuse fails to comply with a requirement
made of him by such an officer under paragraph 2(1), or
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(c) without reasonable excuse fails to give an officer of the Board
acting in pursuance of this Schedule any other assistance or
information which the officer may reasonably require of him for
the purpose of the performance of the officer’s functions under
this Schedule,11

shall be guilty of an offence.
(2) A person guilty of an offence under sub-paragraph (1) shall be liable on
summary conviction to a fine not exceeding £5,000.
(3) If a person, in giving any such information as is mentioned in sub-
paragraph (1)(c), —
(a) makes a statement which he knows is false in a material
particular, or
(b) recklessly makes a statement which is false in a material
particular,
he shall be guilty of an offence.
(4) A person guilty of an offence under sub-paragraph (3) shall be liable —
(a) on summary conviction, to a fine not exceeding £5,000, and
(b) on conviction on information, to a fine.
Impersonation of officers
5. (1) If a person who is not a duly authorised officer of the Board purports to
act as such under this Schedule he shall be guilty of an offence.12

(2) A person guilty of an offence under sub-paragraph (1) shall be liable —
(a) on summary conviction, to a fine not exceeding £5,000, and
(b) on conviction on information, to a fine.
Disclosure of information
6. (1) If a person discloses to another any information obtained by him by
virtue of this Schedule he shall be guilty of an offence unless the disclosure
was made —
(a) in or for the purpose of the performance by him or any other
person of any function under this Act, or
(b) in connection with the investigation of any criminal offence or for
the purposes of any civil or criminal proceedings.
(2) A person guilty of an offence under sub-paragraph (1) shall be liable —
(a) on summary conviction, to a fine not exceeding £5,000, and
(b) on conviction on information, to a fine.
Schedule
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Privilege against self-incrimination
7. Nothing in this Schedule requires a person to answer any question or give any
information if to do so might incriminate him.
Estate Agents Act 1999 Endnotes


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ENDNOTES

Table of Legislation History

Legislation Year and No Commencement






Table of Renumbered Provisions

Original Current






Table of Endnote References

1
Para (d) amended by SD155/10 Sch 8. 2
Definition of ‘Board’ inserted by SD155/10 Sch 8. 3
Definition of ‘Department’ repealed by SD155/10 Sch 8. 4
Subs (3) amended by SD155/10 Sch 8. 5
Para 1 amended by SD155/10 Sch 8. 6
Heading amended by SD155/10 Sch 8. 7
Subpara (1) amended by SD155/10 Sch 8. 8
Subpara (1) amended by SD155/10 Sch 8. 9
Subpara (2) amended by SD155/10 Sch 8. 10
Para (a) amended by SD155/10 Sch 8. 11
Para (c) amended by SD155/10 Sch 8. 12
Subpara (1) amended by SD155/10 Sch 8.