Seán Connick (Wexford, Fianna Fail)

I thank Members for their contributions to the debate. It is clear that the Government's objective of ensuring high standards in the provision and delivery of property services, which this Bill is designed to achieve, is broadly shared on all sides of the House. While Members were broadly supportive of the Bill's objectives, a number of detailed points were raised, which can be clarified by the Minister in due course on Committee Stage. In the meantime, I will clarify some of the following points.

On the publication of house prices and details of commercial leases, I welcome the support shown by Deputies Shatter, Rabbitte, O'Brien and Broughan for the Minister's proposal that the Bill should provide for the publication of data on property sales prices and commercial rents. As the Minister indicated, he intends to introduce amendments on Committee Stage to provide for the publication of such data. Specifically, the Minister intends to introduce amendments to provide that the authority will publish information in respect of the addresses and sales prices of individual properties, which it will obtain from the Revenue Commissioners. Publication of this information will help to promote transparency in the residential property market.

As for commercial leases, the Minister established the working group on transparency in commercial rent reviews earlier this year to focus on practical issues that might help to lessen the mistrust that appears to attach to the rent review process. The working group recommended the establishment of a public database, which would include relevant details of commercial letting agreements and rent reviews. As the Minister already stated, he intends to take the opportunity presented by the passage of this Bill to give the responsibility for the establishment and maintenance of the necessary database to the property services regulatory authority, PSRA. The Minister fully endorses the views of the group to the effect that access to all relevant information is critical in respect of ensuring that a true market rent emerges from the commercial rent review process and that it is of particular importance that all parties to the rent review are on an equal footing in respect of the ability to obtain such information.

The legislative proposals to give effect to the recommendation will draw heavily upon the suggestions contained in the report of the working party. That report notes that certain basic information is currently available to the Revenue Commissioners that could feed into the overall process. It also notes it would be necessary to provide additional information to the entity charged with making public the detail attaching to lease agreements and rent reviews and that the provision of such information would probably necessitate the imposition of a statutory obligation on relevant parties. The Minister is fully committed to implementing the working group's recommendation in this area. Inevitably, however, there are matters of detail to be resolved before the amendment is finalised and those matters still are being worked on within the Department.

In respect of the issue of data protection, the legal advice available to the Minister is that once a statutory obligation is imposed on the authority to publish the data, it will not be necessary to amend the Data Protection Acts. Finally, the issue of publishing residential property sales prices going back a number of years is being considered in the Department in the context of the drafting of the proposed amendments to the Bill.

As for multi-unit developments, several speakers mentioned the Multi-Unit Developments Bill 2009 and it was suggested that the issues being dealt with in that Bill and in this legislation could have been dealt with together. Deputy Tuffy explained in greater detail the type of problem that arises in apartment buildings. However, the Multi-Unit Developments Bill deals with the ownership and management of the common areas of a multi-unit development and its provisions are designed to help owners' management companies to operate in an efficient, fair and effective manner. It is common practice for owners' management companies to engage property management agents to assist in the management of the developments and as such, the property management agent provides property services to the owners' management company and should be regulated under the same Bill as other service providers.

Deputies Burke and Browne queried the composition of the board of the property services regulatory authority. This issue also was discussed in great detail in the Seanad and as a result, the Minister tabled a number of amendments to section 10. It was considered in the Seanad that property service providers should be represented on the board of the authority to bring expertise in respect of the property service industry to the board but that those representatives should be in a minority. As a result, the Bill was amended to provide that a maximum of three members of the board could be representatives of the property services sector. The Minister is at present examining the possibility of giving more prominent representation to consumer interests on the board. He intends bringing forward a suitable amendment on Committee Stage and with regard to the appeal board, I assure Deputy Burke that it will be completely independent of the authority. Schedule 5 provides that the chairperson of the board must be a practising barrister or solicitor of seven years' standing. This should ensure the independence of the appeal board.

Deputy Shatter referred to the need to regulate ethical standards in the property services industry. Section 92 provides that the authority can make regulations setting out standards to be observed in the provision of property services, with particular reference to the public interest, the duty owed to clients and users of property services, professional and ethical standards and conflicts of interest. These regulations will set out in greater detail the standards which auctioneers, estate agents and property management agents will have to comply with in the future. It would not be possible to include the necessary detail in the Bill.

Deputy Shatter also raised concerns about the involvement of auctioneers and estate agents in facilitating and putting together financial packages to enable individuals to purchase properties. As the Minister already said, in order to avoid conflicts of interest section 60 specifies the conditions under which a licensee acting for a vendor may provide a financial service to a purchaser. It prohibits the provision by a licensee of such a financial service to a purchaser without the prior written consent of both parties.

The question was raised of how long licences will last. Section 32(vi) provides that licences will normally last for a period of one year.

Deputy Kenneally asked how the provisions in the Bill relating to letters of engagement will affect clients who appoint more than one auctioneer or letting agent. Schedule 2 provides that in the case of the sale of land, which includes houses and other buildings, the letter of engagement will include details as to whether the auctioneer or estate agent will be the sole agent or whether other auctioneers or letting agents will also be employed by the client. It also provides that the letter will include details of the obligations, if any, which will apply to the client should he or she dispose of any part of the land otherwise than through the auctioneer or estate agent concerned.

Deputy Burke also raised concerns in relating to lack of transparency in private treaty sales. In the case of such sales, section 61 imposes an obligation on auctioneers and estate agents to keep records of all offers received for land, including houses and other buildings, for a period of six years. They are also required to keep records of all conditional acceptances.

On behalf of the Minister for Justice and Law Reform, I thank all those who contributed to the debate. The Minister will consider the points raised in the context of possible Committee Stage amendments.

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