CLIENTS MONEY PROTECTION

Guardian Estates is a Member of the CMP (Client Money Protect)

From 1 April 2019, all letting agents in England have been required to belong to a client money protection scheme when they are holding client money. This requirement is also in place in Wales as part of the Rent Smart Wales licensing conditions. This provides insurance to landlords and tenants in the event the agent steals money from their clients.

At its most basic, the client money protection regulations require anyone engaging in property work to pay to belong to one of the recognised and approved client money protection schemes where they are holding client money.

This will insure any money paid by the landlord or tenant, so that if it is stolen by the agent, the landlord is covered.

What is client money?

Client money is any money received from a client (landlord or tenant) in the course of business that is held for another person. Rent for example is client money as the money is received in the course of business and held on behalf of the landlord. Similarly, a holding deposit or other charge would count as client money.

If a security deposit is held in your account in accordance with an insurance based deposit scheme, this money is not classed as client money.

Which schemes are available?

  1. Client Money Protect
  2. Money Shield
  3. Safeagent (previously this was NALS)
  4. UKALA Client Money Protection
  5. Propertymark
  6. RICS Client Money Protection