| Letting Rip |
 |
| Property club investors could sue for losses |
|
| Property club investors with mounting losses may be able to claim compensation from the advisors who earned commission on investments that failed to deliver the promised returns. |
|
| Property Tax Plus wants to kick off a campaign to name and shame these property clubs - and we need your help. So if you've paid out to buy a property and feel the deal has not lived up to the promises, tell us your story. |
|
| Email us details of the deal, the property club and the commission you paid to the club. Property Tax Plus will approach the club and ask them to comment. Property Tax Plus will publish the details - keeping your anonmity if required. |
|
| This way, you can help us build a list of the good and not so good property clubs to help other investors. |
|
| Property investors may have legal redress to compensation for deals that have soured, as property clubs have a responsibility to their clients under the law of agency although they are not party to the purchase contract. |
|
| The key to whether you can win compensation is whether the property club were up front with you about any commissions they may have been paid before signing you up to a deal. |
|
| Many investors may be due money back from property clubs if the club failed to reveal their commission, provided an agency fee - commission for the sale - was paid to the club. |
|
| Currently, investing through property clubs is a business investment sector that is not regulated. |
|
| The National Association of Estate Agents (NAEA) has an ongoing campaign for the government to introduce legislation to protect property buyers. |
|
| "Anyone can set up as a property club or estate agent without any experience or qualifications, " said an NAEA spokesman. "We believe anyone advising on buying or selling property should be governed by the law. Although we have many estate agent members, our code of conduct is entirely voluntarily." |
|
| Not every investopr will be entitled to compensation. - it depends on how the arrangement with the property club was structured. |
|
| As an investor, the property buyer is responsible for the purchase decision and making sure the deal stacks up, but if you could not do this because you were misled by omission or on purpose, then you may have a legal reason to pursue the property club to get at least some of your money back. |
|
 Click here to email your property club experiences. No names or details will be revealed without your prior written permission |
|
 |
|
| Published: 24 July 2008 |
