Official Press release
http://www.justice.ie/en/JELR/Pages/...%20Bill%202009
Publication of Property Services (Regulation) Bill 2009
The Minister for Justice, Equality and Law Reform, Mr. Dermot Ahern T.D., today published the Property Services (Regulation) Bill 2009 which will be presented in the Seanad.
Minister Ahern said: "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 Bill, in so far as it provides for the regulation of property management agents, is also an important element of the Government’s strategy to address problems arising in relation to the management of multi-unit developments."
The purpose of the Bill is to give effect to recommendations set out in the Report of the Auctioneering/Estate Agency Review Group. The existing District Court-based licensing system for auctioneers and house agents will be transferred to the Property Services Regulatory Authority, which is currently operating on a non-statutory basis, and its scope extended to cover property management agents. The Authority will also be given comprehensive investigative and enforcement functions and will also be responsible for establishing and administering a new Property Services Compensation Fund.
With a view to further protecting the interests of clients and users of property services, the Bill also gives the Authority power to set and enforce standards in areas connected with the provision of property services by means of regulations. These include the terms of building contracts, the content of advertisements for the sale or letting of land and standards for the measurement of land offered for sale or letting.
The Bill and accompanying Explanatory Memorandum is available on the Oireachtas website www.oireachtas.ie
11 May 2009
Note for Editors
Property Services (Regulation) Bill 2009
The main provisions of the Bill are as follows:
Property Services Regulatory Authority
The main functions of the new Authority will be as follows:
o To operate a comprehensive licensing system covering all providers of property services, i.e. auctioneers, letting agents and property management agents; this extended system will replace the licensing system for auctioneers and house agents which is currently based in the District Court;
o To set and enforce standards, e.g. education and training standards; levels of professional indemnity insurance;
o To establish and administer a system of investigation and adjudication of complaints;
o To promote increased consumer awareness and protection;
o To establish, maintain and administer the Property Services Compensation Fund.
Licences to provide property services
In future, a person will be prohibited from providing a property service or holding himself or herself out as available to provide such a service without a licence issued by the Authority. The licensing requirement covers persons (including companies) who employ others to provide property services as well as independent contractors, partners and employees providing a property service. The procedures governing the issuing and renewing of licences are set out in Part 3.
Letter of engagement (property services agreement) (Part 4 and Schedule 2)
In order to increase consumer protection, the Bill requires licensees to issue a letter of engagement to all clients. This letter must be signed by the licensee and the client and it then becomes a property services agreement. The detailed information which must be included in the agreement is set out in Schedule 2.
Client accounts and related matters
Part 5 of the Bill contains extensive provisions relating to the protection of clients’ funds. These are largely based on the safeguards already contained in the Auctioneers and House Agents Acts 1947 to 1973 but will in future extend to funds under the control of property management agents.
Sale or letting of land
Part 6 contains provisions which are designed to safeguard the interests of purchasers of land, whether by auction or otherwise. In future, licensees will be required to give intending vendors a statement of the ‘advised market value’ of the property. This can be changed to take account of prevailing market conditions. Similar provisions apply in respect of the ‘advised letting value’ of property being valued for the purpose of letting.
The current practice of permitting a vendor of land being sold by auction to bid up to the reserve price, or employ another person to do so, will be prohibited. Where land is sold other than by auction, the licensee will be required to retain a record of all offers received, including conditional acceptances, for a period of 6 years.
In order to avoid conflicts of interest, the written consent of both the vendor and the licensee must be obtained where a licensee (or a subsidiary or associated body) who is selling land on behalf of a vendor is also providing a financial service to the purchaser of that land.
Complaints, investigations and sanctions
Part 7 sets out the procedures to be followed in relation to complaints, investigations and sanctions. The Authority is empowered to appoint an inspector (or inspectors) to carry out an investigation of a licensee on its own volition or on foot of a complaint. The inspector will carry out an investigation and prepare and submit a report to the Authority. The report will indicate whether or not the inspector is satisfied that improper conduct by the licensee is occurring or has occurred or whether a further investigation is necessary. The report will not make any recommendation in relation to the sanction (if any) that should be imposed on the licensee. Extensive provisions are included to ensure that fair procedures are following in relation to investigations by the Authority.
Where, after consideration of a report, the Authority is satisfied that improper conduct is occurring or has occurred it has the power to impose a ‘minor sanction’, i.e. a reprimand, warning, caution or advice or a ‘major sanction’, i.e. a financial penalty (payment of up to €50,000 into the Compensation Fund, the cost/part of the cost (up to €50,000) of an investigation, a financial penalty of up to €250,000 to the Authority) and/or the suspension or revocation of a licence. However, a decision by the Authority to impose a ‘major sanction’ will not take effect unless the decision is confirmed by the High Court on foot of an appeal by the licensee or on the basis of an application by the Authority.
Where a licensee is convicted of an offence under the Act, the court may, and in some cases shall, revoke all licenses held by the licensee and prohibit the licensee (either permanently or temporarily) from applying for a licence or particular type of licence. In exceptional circumstances where the Authority considers that there is immediate risk of financial harm to clients of licensees or users or potential users of property services, the Authority is empowered to apply to the High Court on an ex parte basis for an interim order to suspend the licence. An interim order can last for a maximum of 8 working days. In order to extend any such order, the Authority will have to apply to the Court on notice to the licensee for a new order.
The Bill (section 84) also makes provision for the investigation of persons providing a property service without a licence. Where the Authority is satisfied that a person is providing a property service, holding himself or herself out as available to provide such a service or representing himself or herself as available to provide such a service without the necessary licence, it must refer the matter to the Garda Commissioner, who can institute proceedings on indictment, and report the matter to the Minister. In addition, it can seek a High Court injunction preventing the person from continuing the activity concerned and/or institute summary proceedings against the person concerned.
Appeals (Part 8 and Schedule 5)
The Bill provides for establishment of the Property Services Appeal Board to hear appeals against certain decisions of the Authority:
(a) refusal to issue a licence (other than decisions to refuse on technical grounds e.g. because the applicant does not have tax clearance or the required level of professional indemnity insurance, etc.);
(b) a decision not to carry out an investigation on foot of a complaint (e.g. because the complaint is considered frivolous and vexatious);
(c) dismissal of a complaint following an investigation;
(d) imposition of a minor sanction; or
(e) refusal to make a grant or a decision relating to the amount of the grant made.
Property Services Compensation Fund
Part 9 (and Schedule 6) provide for the establishment, administration and maintenance of the Property Services Compensation Fund by the Authority. These provisions are modelled on similar provisions in the Solicitors Acts 1954 to 2008. The purpose of the Fund is to compensate clients of licensees for losses sustained as a result of dishonesty on the part of a licensee (or partners, agents or employees, or former partners, agents or employees of the licensee). The grant or renewal of licences will be subject to making an annual contribution to the Fund. One of the ‘major sanctions’ included in the Bill is the payment of an additional sum of up to €50,000 into the Fund.
Maintenance of professional competence
The Bill (Part 10) will empower the Authority to make regulations providing for schemes of education and training so as to ensure ongoing maintenance of the professional competence of licensees. A duty is being placed on licensees to maintain their professional competence.
Property services provided by certain persons from EU Member States (Part 11)
In order to ensure compliance with EU law, including the ‘Services Directive’, the Bill contains extensive provisions which will permit recognition of licences or other authorisations granted by a comparable licensing authority in another Member State, while at the same time ensuring that such persons (‘relevant persons’) will be subject to the Authority’s complaints procedure and disciplinary code. A ‘relevant person’ must, however, be subject to a scheme of protection in respect of client accounts similar to that provided in Part 5 of the Bill. They will also be required to state in the letter of engagement whether or not they are covered by a compensation scheme similar to the Compensation Fund and provide full details of professional indemnity insurance.
These requirements are intended to ensure that customers are aware of the existence, and extent, of any protective measures that would be available to them before entering into a property services agreement with any relevant person
Download bill from here
http://www.oireachtas.ie/viewdoc.asp...1740&&CatID=59
Some text:
Bill Number 28 of 2009
Sponsored by Senator Donie Cassidy on behalf of the Minister for Justice, Equality and Law Reform
Source: Private Member
Method: Presented
Status: New Bill
Bill entitled an Act to provide for the establishment of a body, to be known as An tÚdaras Rialála Seirbhísí Maoine, or in the English language the Property Services Regulatory Authority, to control and supervise the providers of property services, to cause any complaints against those providers to be investigated and to adjudicate on any such complaints; to provide for the establishment of a body to be known as An Bord Achomhairc um Sheirbhísí Maoine, or in the English language the Property Services Appeal Board, to hear and determine appeals against certain decisions of the Authority; and to provide for taking account of Directive 2006/123/ec in so far as it relates to property services; to provide for the consequential repeal or amendment of certain enactments and the revocation of a statutory instrument; and for related matters.
--
Press release 21st May
http://www.justice.ie/en/JELR/Pages...Minister for Justice, Equality and Law Reform
--
National Property Services Regulatory Authority’s (NPSRA)
http://www.npsra.ie/
http://www.justice.ie/en/JELR/Pages/...%20Bill%202009
Publication of Property Services (Regulation) Bill 2009
The Minister for Justice, Equality and Law Reform, Mr. Dermot Ahern T.D., today published the Property Services (Regulation) Bill 2009 which will be presented in the Seanad.
Minister Ahern said: "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 Bill, in so far as it provides for the regulation of property management agents, is also an important element of the Government’s strategy to address problems arising in relation to the management of multi-unit developments."
The purpose of the Bill is to give effect to recommendations set out in the Report of the Auctioneering/Estate Agency Review Group. The existing District Court-based licensing system for auctioneers and house agents will be transferred to the Property Services Regulatory Authority, which is currently operating on a non-statutory basis, and its scope extended to cover property management agents. The Authority will also be given comprehensive investigative and enforcement functions and will also be responsible for establishing and administering a new Property Services Compensation Fund.
With a view to further protecting the interests of clients and users of property services, the Bill also gives the Authority power to set and enforce standards in areas connected with the provision of property services by means of regulations. These include the terms of building contracts, the content of advertisements for the sale or letting of land and standards for the measurement of land offered for sale or letting.
The Bill and accompanying Explanatory Memorandum is available on the Oireachtas website www.oireachtas.ie
11 May 2009
Note for Editors
Property Services (Regulation) Bill 2009
The main provisions of the Bill are as follows:
Property Services Regulatory Authority
The main functions of the new Authority will be as follows:
o To operate a comprehensive licensing system covering all providers of property services, i.e. auctioneers, letting agents and property management agents; this extended system will replace the licensing system for auctioneers and house agents which is currently based in the District Court;
o To set and enforce standards, e.g. education and training standards; levels of professional indemnity insurance;
o To establish and administer a system of investigation and adjudication of complaints;
o To promote increased consumer awareness and protection;
o To establish, maintain and administer the Property Services Compensation Fund.
Licences to provide property services
In future, a person will be prohibited from providing a property service or holding himself or herself out as available to provide such a service without a licence issued by the Authority. The licensing requirement covers persons (including companies) who employ others to provide property services as well as independent contractors, partners and employees providing a property service. The procedures governing the issuing and renewing of licences are set out in Part 3.
Letter of engagement (property services agreement) (Part 4 and Schedule 2)
In order to increase consumer protection, the Bill requires licensees to issue a letter of engagement to all clients. This letter must be signed by the licensee and the client and it then becomes a property services agreement. The detailed information which must be included in the agreement is set out in Schedule 2.
Client accounts and related matters
Part 5 of the Bill contains extensive provisions relating to the protection of clients’ funds. These are largely based on the safeguards already contained in the Auctioneers and House Agents Acts 1947 to 1973 but will in future extend to funds under the control of property management agents.
Sale or letting of land
Part 6 contains provisions which are designed to safeguard the interests of purchasers of land, whether by auction or otherwise. In future, licensees will be required to give intending vendors a statement of the ‘advised market value’ of the property. This can be changed to take account of prevailing market conditions. Similar provisions apply in respect of the ‘advised letting value’ of property being valued for the purpose of letting.
The current practice of permitting a vendor of land being sold by auction to bid up to the reserve price, or employ another person to do so, will be prohibited. Where land is sold other than by auction, the licensee will be required to retain a record of all offers received, including conditional acceptances, for a period of 6 years.
In order to avoid conflicts of interest, the written consent of both the vendor and the licensee must be obtained where a licensee (or a subsidiary or associated body) who is selling land on behalf of a vendor is also providing a financial service to the purchaser of that land.
Complaints, investigations and sanctions
Part 7 sets out the procedures to be followed in relation to complaints, investigations and sanctions. The Authority is empowered to appoint an inspector (or inspectors) to carry out an investigation of a licensee on its own volition or on foot of a complaint. The inspector will carry out an investigation and prepare and submit a report to the Authority. The report will indicate whether or not the inspector is satisfied that improper conduct by the licensee is occurring or has occurred or whether a further investigation is necessary. The report will not make any recommendation in relation to the sanction (if any) that should be imposed on the licensee. Extensive provisions are included to ensure that fair procedures are following in relation to investigations by the Authority.
Where, after consideration of a report, the Authority is satisfied that improper conduct is occurring or has occurred it has the power to impose a ‘minor sanction’, i.e. a reprimand, warning, caution or advice or a ‘major sanction’, i.e. a financial penalty (payment of up to €50,000 into the Compensation Fund, the cost/part of the cost (up to €50,000) of an investigation, a financial penalty of up to €250,000 to the Authority) and/or the suspension or revocation of a licence. However, a decision by the Authority to impose a ‘major sanction’ will not take effect unless the decision is confirmed by the High Court on foot of an appeal by the licensee or on the basis of an application by the Authority.
Where a licensee is convicted of an offence under the Act, the court may, and in some cases shall, revoke all licenses held by the licensee and prohibit the licensee (either permanently or temporarily) from applying for a licence or particular type of licence. In exceptional circumstances where the Authority considers that there is immediate risk of financial harm to clients of licensees or users or potential users of property services, the Authority is empowered to apply to the High Court on an ex parte basis for an interim order to suspend the licence. An interim order can last for a maximum of 8 working days. In order to extend any such order, the Authority will have to apply to the Court on notice to the licensee for a new order.
The Bill (section 84) also makes provision for the investigation of persons providing a property service without a licence. Where the Authority is satisfied that a person is providing a property service, holding himself or herself out as available to provide such a service or representing himself or herself as available to provide such a service without the necessary licence, it must refer the matter to the Garda Commissioner, who can institute proceedings on indictment, and report the matter to the Minister. In addition, it can seek a High Court injunction preventing the person from continuing the activity concerned and/or institute summary proceedings against the person concerned.
Appeals (Part 8 and Schedule 5)
The Bill provides for establishment of the Property Services Appeal Board to hear appeals against certain decisions of the Authority:
(a) refusal to issue a licence (other than decisions to refuse on technical grounds e.g. because the applicant does not have tax clearance or the required level of professional indemnity insurance, etc.);
(b) a decision not to carry out an investigation on foot of a complaint (e.g. because the complaint is considered frivolous and vexatious);
(c) dismissal of a complaint following an investigation;
(d) imposition of a minor sanction; or
(e) refusal to make a grant or a decision relating to the amount of the grant made.
Property Services Compensation Fund
Part 9 (and Schedule 6) provide for the establishment, administration and maintenance of the Property Services Compensation Fund by the Authority. These provisions are modelled on similar provisions in the Solicitors Acts 1954 to 2008. The purpose of the Fund is to compensate clients of licensees for losses sustained as a result of dishonesty on the part of a licensee (or partners, agents or employees, or former partners, agents or employees of the licensee). The grant or renewal of licences will be subject to making an annual contribution to the Fund. One of the ‘major sanctions’ included in the Bill is the payment of an additional sum of up to €50,000 into the Fund.
Maintenance of professional competence
The Bill (Part 10) will empower the Authority to make regulations providing for schemes of education and training so as to ensure ongoing maintenance of the professional competence of licensees. A duty is being placed on licensees to maintain their professional competence.
Property services provided by certain persons from EU Member States (Part 11)
In order to ensure compliance with EU law, including the ‘Services Directive’, the Bill contains extensive provisions which will permit recognition of licences or other authorisations granted by a comparable licensing authority in another Member State, while at the same time ensuring that such persons (‘relevant persons’) will be subject to the Authority’s complaints procedure and disciplinary code. A ‘relevant person’ must, however, be subject to a scheme of protection in respect of client accounts similar to that provided in Part 5 of the Bill. They will also be required to state in the letter of engagement whether or not they are covered by a compensation scheme similar to the Compensation Fund and provide full details of professional indemnity insurance.
These requirements are intended to ensure that customers are aware of the existence, and extent, of any protective measures that would be available to them before entering into a property services agreement with any relevant person
Download bill from here
http://www.oireachtas.ie/viewdoc.asp...1740&&CatID=59
Some text:
Bill Number 28 of 2009
Sponsored by Senator Donie Cassidy on behalf of the Minister for Justice, Equality and Law Reform
Source: Private Member
Method: Presented
Status: New Bill
Bill entitled an Act to provide for the establishment of a body, to be known as An tÚdaras Rialála Seirbhísí Maoine, or in the English language the Property Services Regulatory Authority, to control and supervise the providers of property services, to cause any complaints against those providers to be investigated and to adjudicate on any such complaints; to provide for the establishment of a body to be known as An Bord Achomhairc um Sheirbhísí Maoine, or in the English language the Property Services Appeal Board, to hear and determine appeals against certain decisions of the Authority; and to provide for taking account of Directive 2006/123/ec in so far as it relates to property services; to provide for the consequential repeal or amendment of certain enactments and the revocation of a statutory instrument; and for related matters.
--
Press release 21st May
http://www.justice.ie/en/JELR/Pages...Minister for Justice, Equality and Law Reform
--
National Property Services Regulatory Authority’s (NPSRA)
http://www.npsra.ie/