Too many additional reports and not enough direct client contact is leading to confusion and increased complaints in the Scottish property market, according to a report published on 17 November 2006.

The Surveyor Ombudsman Scheme was set up in 2004 to offer a unique, impartial and free source of support for consumers who have complaints about the service they have received from chartered surveyors in Scotland. The Scheme’s second annual report criticises the profession for an over-reliance on standard phrases and commissioning of additional reports. Surveyor Ombudsman Ian Smith also warns that the involvement of intermediaries including legal and financial advisors has lead to a breakdown in communication between surveyors and their clients, which can create confusion.

Since the publication of the first annual report the Surveyor Ombudsman has seen complaints to the Scheme double from 51 to 112 as public awareness grows. The majority of complaints referred to residential surveys and valuations*. Due to the Scheme’s terms of reference ** not every complaint can be fully investigated. The number of new cases going to full investigation remained at nine.

Speaking at the report’s launch Surveyor Ombudsman, Ian Smith, said
“The profession in Scotland has shown itself willing to be subject to independent scrutiny and I continue to be impressed by the high standards of professionalism which apply in most cases. Where rare lapses occur, they damage the reputation of the firms assessed and the profession as a whole but I have found no systemic failures. Despite being able to award up to £25 000, no award of compensation exceeded £1 000 for loss and expenses. Only one maximum award was made this year for stress and inconvenience of £500.”

The main issues that the SOS has highlighted in the report include:
· Confirmation of instructions:  following representations by Surveyor Ombudsman Scheme, RICS revised guidance to Scottish surveyors on confirmation of instructions prior to any service being carried out to help avoid confusion and unrealistic client expectations.

· Poor communication: Surveyors often receive their instructions via other intermediaries (legal and financial advisors) and thus often have no direct contact with their clients.  This can lead to a break down in communication, with both surveyor and client left vulnerable.

· Complaints procedures:  In some cases firms either do not have, or do not operate, a correct complaints procedure, which is in breach of the RICS rules of conduct. The Scheme recommends that clients automatically receive a copy of a surveyor’s complaints procedure by return, once a complaint is made. 

The publication of the Ombudsman’s report follows a major regulation review from RICS. At an Extraordinary General Meeting on 17 October RICS members voted overwhelmingly in support of a new arms-length, self regulatory regime that will mean a significant change for chartered surveyors in the way they are regulated by RICS. The changes flow from Sir Bryan Carsberg’s independent review, published in April 2005. As part of that review, Sir Bryan recommended that the Surveyor Ombudsman Scheme should be extended to the rest of the UK, and this was accepted in full by International Governing Council. RICS are now working towards putting in place a UK wide scheme.

Surveyor Ombudsman, Ian Smith, commented:
“I have enjoyed working with Scottish surveyors. I have rarely had to fault their surveying expertise. Complaints handling is a fairly recent requirement for them and they have largely adapted well. It is clear that they are now much more pro-active in dealing with serious issues before they escalate – to everyone’s benefit. I hope that my experiences will be mirrored as the Carsberg reforms take hold within the profession.” 

Steven Gould, RICS Director of Professional Regulation and Consumer Protection said:
“We are very pleased with the outcome of the Surveyor Ombudsman Scheme in Scotland over the past two years. It has, inevitably, identified some issues that need fine tuning but it has also provided us with a model that we can now develop in the rest of the UK. It is very clear from all our dealing with government that compulsory Ombudsman schemes are coming to property and coming fast. We want to ensure that RICS members have a simple, single solution that is acceptable to all stakeholders.”

Ends
* Nearly 68% of the complaints received to the Surveyor Ombudsman Scheme related to surveys and valuations of residential property.  Other complaints centred around property managers and factors (7); agency matters – buying and selling (6); property searches, plan preparation and planning advice (6);  building and quantity surveys (5): failure to negotiate land compensation promptly (3)

** The terms of reference of the Surveyor Ombudsman Scheme stated that complaints could not be considered for the following reasons:

• The complainant had not been through the surveyors internal Complaints Handling Procedure (CHP)
• The financial loss was more than £25 000
• The complaint involved an act or omission that occurred before 01 October 2003 (3 months before the scheme launched).

The scheme also did not apply to surveying services provided outside Scotland; or complaints from commercial/ business concerns.

Under the RICS rules of conduct, all chartered surveyor firms must have a compulsory Complaints Handling Procedure (CHP) in place. This must be referred to in the firms’ terms and conditions of engagement. In Scotland, this should also make reference to the Surveyor Ombudsman Scheme as an alternative source of dispute resolution.