Legislation to set up a regulatory authority to govern estate agents and reform the law relating to the buying and selling of property has been approved by the Government.
The announcement was made by Minister for Justice Michael McDowell today.
The legislation will give effect to key recommendations of the Auctioneering/Estate Agency Review Group - including the creation of the Property Services Regulatory Authority to assume responsibility for the licensing and regulation of property service providers, namely auctioneers, estate agents and property management agents.
Mr McDowell said the purchase of property was one of the most significant financial transactions that most people enter into during their lifetimes.
"It is in their interests, and therefore in the public interest, that the property services sector operates to high standards of probity and diligence, and that its services are provided in a professional, efficient and transparent manner," he said.
"The overall objective of the Bill is to update, streamline and reform the property services licensing system and to improve standards in the provision of services. Increased consumer awareness and protection will in turn lead to improved consumer confidence in the property services market," he added.
The main functions of the new Property Services Regulatory Authority will be to operate a licensing system covering all auctioneers, estate agents and property management agencies; to set and enforce standards for the granting of licences; to promote increased consumer protection and public awareness of property services; and to set up a fund to compensate people who lose money as a direct consequence of the dishonesty of a licensee.
The authority will also have the power to investigate complaints about estate agents and auctioneers.
Navan has been chosen as the headquarters of the new authority, and a chief executive has already been appointed.
The draft Bill contains provisions designed to protect the interests of purchasers of land, including requiring licensees to use "advised value" for the purposes of estimating the value of land. This will replace the practice of setting a "guide price."
Where land is sold other than by auction, the licensee will have to keep a record of all offers received, including conditional acceptances.