Property services - Need for a regulatory framework

The Irish Auctioneers and Valuers Institute, which represents about 2,000 qualified auctioneers, has called on the Government to fast-track the promised Property Services Regulatory Authority Bill, first introduced in 2006.

Robert Ganly, president of the IAVI, is launching a campaign today calling for prompt government action.

He contends that a small number of unprincipled individuals have done enormous damage to the image of property service providers. This highlights the need for an appropriate regulatory framework.

The IAVI claims to have rigorous standards for membership, but it cannot regulate people who are not members.

Hence the public is being exposed to many rogue auctioneers who present themselves as qualified to represent the public interests in property matters when they may have no expertise or training.

In the midst of recent difficulties over self-regulation within the legal profession, with all its legal resources, it seems precarious to expect the auctioneering business would be able to police itself on a voluntary basis without the support of a statutory framework for the enforcement of standards of ethics, education and ongoing training that the IAVI requires.

The proposed legislation is designed to provide a new National Property Services Regulatory Authority with statutory powers to license and regulate auctioneers by establishing a comprehensive licensing system covering all providers of property services — including estate agents and property management agents, as well as auctioneers.

The pending legislation would allow the regulatory authority to ensure all auctioneers are suitably qualified, with the proper training. It would also be authorised to promote increased consumer protection and public awareness of the property services available, the cost to consumers, and the benefits associated with such services.

The authority would be empowered to establish and administer a system of investigation relating to property services.

If necessary, it could implement sanctions on auctioneers against whom charges of impropriety have been levelled. It would also be authorised to administer a compensation fund to compensate victims who have lost money as a direct consequence of the behaviour of dishonest auctioneers.

Sanctions could range from the issuing of a reprimand to the suspension of an auctioneer’s licence for a period, or even the complete revocation of that licence.

A voluntary code of practice is already in place, but only a third of the auctioneers have so far subscribed to it. That voluntary code is essentially toothless, because it does not provide for the ultimate sanction of revoking the licence of an incompetent, or even an unscrupulous auctioneer.

There is so much money currently involved in the property sector that it is absolutely insane to allow it to function under quasi-voluntary regulations, while the Government dithers on the implementation of its promises and essentially shirks its responsibility of ensuring a proper system of governance.

Surely we should not have to wait until some rogue auctioneers exploit the loopholes by ripping off millions before the Government wakes up to its responsibility and implements the legislation introduced back in 2006.