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Key Provisions for Client Money Protection Expected Soon

The Government had launched a consultation into whether Client Money Protection (CMP) should be made mandatory for letting agents last year in August and findings were reported in February 2018.

Client money protection is a form of insurance that ensures landlords and tenants are reimbursed in the event of a letting or managing agent going into administration, or where the agent misappropriated their money whilst in their custody.

Membership of a CMP scheme in England is currently not currently compulsory although it is a legal requirement for letting and property management agents to display whether they have client money protection or NOT. It is a current legal requirement in Wales and was introduced into Scotland from January, this year.

The secretary of state is expected to pass the necessary regulations soon and will come into force later this year.

For queries relating to recovery of funds from a Letting Agent or any landlord and tenant matters please contact Aileigh Brough at Meaby&Co on abrough@meaby.co.uk or call 020 7703 5034.

Should you have any questions regarding a Buy to Let purchase, please do not hesitate to contact Abu Valimahomed in our Residential Conveyancing department at abu@meaby.co.uk or call 020 7703 5034.

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Meaby & Co Solicitors LLP is a limited liability partnership authorised and regulated by the Solicitor’s Regulation Authority (SRA Number 447880) and registered in England and Wales with registered number OC322672. Its registered office is at 2 Camberwell Church St, London, SE5 8QY where a list of members’ names and their qualifications is open to inspection. The term ‘partner’ is used to refer to a member of Meaby & Co Solicitors LLP or an employee or consultant with equivalent standing and qualifications or an individual with equivalent status.

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