Q Like many other people, I paid to attend seminars held by a property investment club. Through this scheme, I bought two off-plan apartments. However, I have been unable to find a tenant for either property. The scheme was not regulated by the Financial Services Authority but, nevertheless, I feel that I was misled. What can I do?

A Property investment schemes typically make money by charging for seminars, by charging membership subscriptions or by collecting a “finder's fee” for each property that they recommend. Many investors paid thousands of pounds to these schemes and bought overpriced off-plan investments just before the market downturn.

You have three potential remedies against the scheme. First, like any other professional, the scheme must not be negligent when it gives advice. In the 2007 case of John D.Wood v Knatchbull, the High Court decided that an estate agent has a duty to say if it was aware of relevant sales prices of other properties in the area. If the scheme knew other apartments in the block were selling for much less than you paid, you may be able to claim the difference in price.

Secondly, some property schemes are “collective investment schemes” under the Financial Services and Markets Act 2000. If the operators of such a scheme are not registered with the Financial Services Authority, you have a statutory right to have your money returned.

Finally, there is the law of agency. If the scheme has acted as your agent, it has a duty to tell you about commission fees that it gets from anyone else. If the seller paid a secret commission to the scheme, you have a number of options. The courts will require the agent to pay the commission over to you - and the money is treated as being held by the scheme on trust (a useful protection should the scheme become insolvent). You should also be able to claim damages for buying an overpriced property and may even be able to rescind the purchase agreement for the apartment itself.

However, all this is rather speculative. I do not know of any court cases brought against property investment schemes so far, and you will need to speak to a specialist solicitor about your remedies.

The writer is a barrister at Tanfield Chambers. E-mail your questions to: property.consumer@thetimes.co.uk

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