subject: Auctioneers | Letting Agents Property Service (Regulation) Bill 2009 [print this page] Auctioneers | Letting Agents Property Service (Regulation) Bill 2009
The Property Service (Regulation) Bill 2009 is designed to give effect to the Report of the Auctioneering/Estate Agency Review Group. On the publication of the Bill the Minister for Justice, Equality and Law Reform, Mr. Dermot Ahern T.D. Stated:
"The legislative reforms set out in this Bill are designed to improve the current system of regulation of auctioneers, letting agents and property management agents"
The 2009 Bill provides for the establishment of a body known as the Property Service Regulatory Authority (PSRA) which will effectively supervise the providers of property services. It will investigate complaints made against such service providers and adjudicate on same. Property Services are auctions of private property (other than land), letting of lands, purchase or sale by whatever means of land and property management services.
The Bill provides for Auctioneers and Property Management agents to be licensed by the PSRA. This means the current District Court based licensing system will be abolished for auctioneers, and property management agents will now have to be licensed by the PRSA (there was no obligation to be licensed in the past).
Another change proposed under the Bill is the requirement of auctioneers/agents to issue a letter of engagement to all clients. The letter must be signed by the auctioneers/agents and the client at which point it will become a property service agreement. Auctioneers/agents have to supply intending purchasers with a reasonable "advised market value" or "advised letting value" and for them to retain records of any offers made for a period of 6 years. It also prohibits vendors (or their agents) of land being sold by auction to bid up to the reserve price.
Under the Bill the PSRA will be able set and enforce standards of education and training and also levels of professional indemnity insurance for those providing property services. Part 5 of the Bill contains extensive provisions in relation to the protection of client's funds however, these safeguards are largely in line with the existence measures contained within the Auctioneers and House Agent Acts 1947 to 1973.
The Bill also proposes that complaints can be made against property service provides to the PSRA, which is empowered to appoint an inspector to investigate such complaints where necessary. The inspector will issue a report of his findings to the Authority which will adjudicate on same. The Authority is empowered to impose "minor sanction" however "major sanction" will have to be approved by the High Court. The Bill contains many provisions to ensure fairness and transparency of such proceedings and the decision of the PSRA can be appealed.
In addition to the above the Bill proposes to establish a fund to compensate those who have suffered a loss which is proven to have flow from the dishonesty of a Property Service Provider.
