Regulation of the industry

Study notes

Before 2010 estate agency was regulated across several bodies; the Estate Agents Act 2010 created CEA and the two-tier regime — licensed estate agents and registered salespersons — that every practice question in CU3 builds on.

What you must know

• CEA is the statutory board (under MND) licensing estate agents (the companies) and registering salespersons (the individuals).
• Salesperson registration requires completing the RES course with an approved provider, passing the RES exam, being at least 21, and meeting fit-and-proper checks.
• Continuing professional development (CPD) hours must be completed each year to keep registration active.
• Client monies must be kept in a separate bank account — never mixed with the agency’s or salesperson’s own funds.
• Commission is payable only under a written estate agency agreement using CEA-prescribed forms; the estate agent (not the individual salesperson) sues for it.
• Dual representation — acting for both buyer and seller in the same transaction — is prohibited.
• Estate agents must maintain professional indemnity insurance and observe the Code of Ethics and Professional Client Care.
• Anti-money-laundering duties: customer due diligence on clients and reporting of suspicious transactions.