Property bill aims to clamp down on rogue auctioneers

NEW legislation paving the way for the revocation of rogue auctioneers’ licences will be published in a matter of weeks.

The Property Services Regulatory Authority Bill 2006 is with the Office of the Parliamentary Council, one of the last steps before it comes into law.

The bill will give the new National Property Services Regulatory Authority statutory power not only to licence Property Service Providers auctioneers, but also to regulate them.

That means it can investigate allegations of impropriety levelled against the auctioneers, as well as ensuring they are suitably qualified. The regulatory authority will also have control over a compensation fund to compensate victims of unscrupulous auctioneers.

“It is intended that the functions of the regulatory authority will, in addition to its licensing function, include an investigative function supported by a range of sanctions, ranging from the issuing of a reprimand or caution to suspension of a licence for a period or revocation of such licence,” said Tom Lynch of the regulatory authority.

“The regulatory authority will also have extensive investigative and enforcement powers in relation to standards to be observed in the provision of property services.”

The regulatory authority was set up at the end of 2007 to take over responsibility from the courts and the Revenue Commissioners for the licensing and regulation of Property Service Providers.

Under the new legislation, the main functions of the regulatory authority will be as follows:

* To operate a comprehensive licensing system covering all providers of property services, ie. auctioneers, estate agents and property management agents. This extended system will replace the present licensing system for auctioneers and house agents under the Auctioneers and House Agents Acts 1947 to 1973.

* Set and enforce standards for the granting of licences, for example educational/training standards.

* To establish and administer a system of investigation and adjudication of complaints relating to the provision of property services;

* To promote increased consumer protection and public awareness of property services in general and the cost to consumers, risks and benefits associated with the provision of those services.

* To establish, maintain and administer the compensation fund to compensate parties who lose money as a direct consequence of the dishonesty of a licensee.

Pending enactment of the legislation, a code of practice reflecting much that will be in the bill has already been established. Adherence to that code is only on a voluntary basis and, according to Mr Lynch approximately a third of the country’s auctioneers have signed up. He said a large number of others are considering the implications of it and he expects many more to come on board in the coming months.

“At present the sanctions in the code do not provide for the ultimate sanction of revoking a service provider’s licence,” he said. “However, as soon as the new legislation comes into effect the enforcement provisions in the code will be superseded by the enforcement provisions in the legislation.

“These sanctions are much stronger providing as they do for the ultimate sanction of revocation of a licence by the authority. This legislation we anticipate will be in place later this year.”

* www.nprsa.ie