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Prime Property Auctions Under Scrutiny for Potential Breach of Estate Agency Law

WireNews NewsDesk


Prime Property Auctions Under Scrutiny for Potential Breach of Estate Agency Law
Prime Property Auctions Under Scrutiny for Potential Breach of Estate Agency Law

Two related companies trading under the name Prime Property Auctions are facing questions about whether their online “modern method” property auctions comply with UK and Scottish estate-agency and consumer-protection laws.


According to company filings, Prime Property Auctions Limited (Company No. 12751013) is registered in England and Wales with a correspondence address in Birmingham, while Prime Property Auctions (Scotland) Ltd (Company No. SC738026) is registered in Glasgow. The Scottish company lists its business classification as 98000 – Residents property management, a designation that does not appear to align with the company’s public activities.



The companies market residential and commercial properties across Scotland, England, and Wales through their website, www.primepropertyauctions.co.uk, using an online bidding model. Their promotional material invites potential buyers to “bid now” and promises sellers that properties will be sold “within 28 days.”


Under the company’s stated process, successful bidders are required to pay both a buyer’s premium of 3% of the winning bid (subject to a minimum of £5,000 plus VAT) and a 10% deposit immediately upon bid acceptance — often before the seller has instructed a solicitor or established legal title.


The Legal Framework

Under the Estate Agents Act 1979, any business introducing or negotiating the sale of property in the United Kingdom is considered to be carrying out estate agency work. Such firms must:


  • Be members of an approved redress scheme — either The Property Ombudsman (TPO) or the Property Redress Scheme (PRS) — as required by the Consumers, Estate Agents and Redress Act 2007;

  • Belong to an approved Client Money Protection (CMP) scheme if they handle deposits or other client funds, as required under the Client Money Protection Schemes for Property Agents Regulations 2019; and

  • Conduct their operations transparently under the Consumer Protection from Unfair Trading Regulations 2008.


While the Estate Agents Act 1979 provides a narrow exemption for traditional auctioneers — where a property is sold in a public auction room and the fall of the hammer forms an immediate binding contract — this exemption does not apply to online-only or “modern method” auctions. In such cases, the company acts as an estate agent in law and must therefore be registered and regulated as such.


Scottish Legal Considerations

In Scotland, the law imposes additional requirements. A valid offer to purchase heritable property must be made through a solicitor and concluded by missives between solicitors. The practice of requiring deposits and auction fees before solicitor involvement, or before the seller has exhibited title, is inconsistent with the established Scottish conveyancing framework.



Furthermore, any firm operating in Scotland as an estate agent or auction intermediary must handle deposits through a ring-fenced client account protected by a recognised CMP scheme. To date, WireNews has been unable to identify any publicly available CMP certificate or evidence of such protection for Prime Property Auctions’ operations.


Unverified Use of PRS Logo

Public searches of both The Property Ombudsman and Property Redress Scheme membership databases have not revealed any listing for either company. Despite this, the companies’ website prominently displays the Property Redress Scheme (PRS) logo on multiple pages, including property listings and the homepage, without any accompanying membership number or verification link.


Prime Property Auctions Ltd's (Company No. 12751013) PRS membership has expired.


The use of a regulatory logo in this manner is particularly concerning. It not only demonstrates knowledge of the legal requirement for registration under the Consumers, Estate Agents and Redress Act 2007, but, if unauthorised, could also constitute fraud by false representation under the Fraud Act 2006 and a serious breach of consumer-protection law.


Consumer Risk

Legal experts contacted by WireNews warn that the combination of:


  • Immediate non-refundable fees,

  • Deposits paid before ownership verification, and

  • Absence of clear regulatory oversight,

places consumers at significant financial risk if a seller fails to complete or if title defects arise.


Requests for Clarification

Our journalist reached out to Prime Property Auctions Limited and Prime Property Auctions (Scotland) Ltd seeking clarification on their compliance with estate-agency and consumer-protection laws, their redress-scheme membership, and their handling of client funds.

As of the time of publication, no response has been received.



Regulatory Inquiries

Formal inquiries have been submitted to the Law Society of Scotland, The Property Ombudsman, and the Property Redress Scheme (PRS) to determine whether the companies are registered, whether the display of the PRS logo is authorised, and whether their operations fall within the scope of regulated estate-agency work.


WireNews will update this report as further information becomes available.

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