The Association of International Property Professionals (AIPP), is introducing a new independent arbitration scheme to its complaints procedure. Like the ABTA scheme for travel agents, they say it will help resolve consumer disputes over the purchase of international property more swiftly and efficiently whilst keeping costs low.

“The new procedure strengthens the AIPP’s ability to resolve disagreements between our members and purchasers in the international market,” says Prof Mark Sharp, CEO of the AIPP. “Purchasers will benefit from a clearer, more efficient and affordable process of resolving disputes.

“Many dispute cases brought to the AIPP have been successfully resolved informally, but a handful are more complex. From now on, these disputes will be referred to an independent organisation providing a swifter and more efficient service for all parties.”

From January 2011, dispute cases which cannot be resolved informally will be referred to a scheme operated by independent dispute resolution service provider, IDRS Ltd, which will result in a legally binding decision awarding costs and compensation where relevant. The scheme is designed to deal with disputes for the sum of £30,000 or less between agent and developer members of the AIPP and their clients and is a far less expensive option than pursuing the matter via legal channels. Disputes over higher sums won’t be covered by the scheme, however, these will be referred to ‘ad hoc’ arbitration, which is still a swifter, more cost-effective avenue of dispute resolution compared to the courts.

The scheme is similar to that operated by organisations such as ABTA (Association of British Travel Agents) and aims to build confidence in the international property market. It also comes in the wake of the UK Government‘s announcement in December that it had decided to appoint a special overseas property advisor to help British owners of Spanish properties who have experienced property fraud in Spain.

This month the AIPP is also introducing new guidelines to encourage its members to improve the standards of contracts and written agreements with customers and will distribute an AIPP template for a Standard Reservation form and a recommended internal ‘Complaints Handling Procedure’.

“Too often disputes arise over poorly drafted or unclear written agreements,” says Prof Sharp. “We hope to reduce the number of these by circulating template documents to our members and encouraging their use when companies do not already have robust documentation.

“Other disputes arise over slow or inadequate handling of customer complaints. Again we will be encouraging members to adopt a best practice complaints procedure,” he adds.

Established in 2006, the AIPP has around 300 members and is the leading association in the international property market. They seek to improve industry standards, encourage best practice and to educate consumers on how to buy overseas property safely. Read the AIPP’s Safe Buying Guide Here.