Client Money Protection (CMP) application for reimbursement

Please note that the Propertymark CMP scheme does not cover disputes about the return of tenancy deposits or disputes about deductions to those deposits.

• Landlords
• Tenants

Landlords

• Rent owed
• Other client funds held by agents such as cash float to pay for maintenance and repairs
• Fee money taken in advance
• Money held by agents appointed as a receiver under the Law of Property Act 1925
• Sale proceeds
• Any interest earned which is due to the landlord

Tenants

• Unprotected tenancy deposits or those that fall outside the requirement to be registered with a tenancy deposit scheme.

Propertymark's CMP scheme does not cover:

• Loss of client monies relating to the property disciplines defined as 'Block Management' or 'Holiday Lets'.
• Misappropriation of client funds taking place outside of the period in which the CMP scheme member is covered under the Propertymark CMP scheme. 
• Disputes over the return of deposits to tenants or for any claim that a landlord may have for deductions to a deposit. Claims relating to deposits must be refered to the Tenancy Deposit Scheme to which the deposit was registered. 
• Where a landlord and property agent enter into a 'Guaranteed Rent' contract (also known as 'Rent to Rent'). The money paid by the property agent to the landlord is not defined as client money and is outside of the scope of the Propertymark CMP scheme.
• Claims received by Propertymark more than 12 months from the date of notification that a misappropriation has occured. Current and active claims are published on the website alongside the closing date for applications.
• Any loss arising from war (whether foreign or civil), terrorism, rebellion, revolution, military uprising or any form of confiscation by the state.

What happens if an agent leaves the CMP scheme?

The Security Certificate issued to a CMP scheme member may be invalidated if the Principal, Partner or Director of the firm ends their Propertymark membership. Please note that the period of cover may therefore expire before the expiry date quoted on the Security Certificate.

Whilst the firm must notify you by law, Propertymark suggests using the 'Find an expert' search to check the status of the agency—only those currently in membership will be listed in search results.  

Every year, unprotected landlords and tenants lose money when funds are misappropriated. Unlike the financial services sector, there is no mandatory regulation of esate or letting agents. Property agents do not currently have to be qualified; the idea that 'anyone can become a property agent' is not far from the truth. 

True crime
Rogue letting agent Manish Manek was found guilty of 17 counts of theft involving tenants’ deposits and rent owed to landlords. Whilst running Je Je Barons in Kingston-on-Thames, south-west London—he stole £47,000 before fleeing the UK having secretly sold his home. A police investigation found that Mr. Manek had been putting tenant deposits and rent into his personal account.

He was finally arrested and sentenced to jail when trying to re-enter the UK but his victims never saw their money returned—this is where CMP steps in. If Je Je Barons belonged to a CMP scheme, the victims of Mr. Manek would have been able to apply for reimbursement of the money they lost.

As the law stands, there is nothing to stop Mr. Manek working in lettings or sales in future.