Marc MacSharry (Sligo-Leitrim, Fianna Fail) | Oireachtas source

I move: "That the Bill be now read a Second Time."

I thank the Minister of State for facilitating us. The Minister for Justice, Deputy McEntee, has been in contact with me to say the Government is not opposing the Bill. A lot of colleagues are supporting it and I am very grateful to them for that opportunity. Before I begin, I welcome members of the Institute of Professional Auctioneers and Valuers to the Gallery, including its CEO Pat Davitt and its president John Kennedy. I thank them for their vision in suggesting this legislation. I also thank former Oireachtas Member and Senator, Lorraine Higgins, of Rockwood, for her assistance in drafting the legislation, which I am pleased to bring forward for the Second Stage debate today.

The Seller's Legal Pack for Property Buyers Bill 2021 was first introduced to the House in November 2021.

I look forward to hearing constructive contributions from other Members.

With the Bill, we are for the first time addressing the frustrating delays in conveyancing, as a matter of legislative urgency. In that context, its overall objective is to contribute to a reduction in these delays being experienced by would-be buyers when they seek to purchase a property. The Bill does exactly what it says on the tin. It aims to create a statutory requirement for a seller's pack, including legal documents to be made available to potential buyers, when a property is placed on the market, which will cut the current long delays being experienced at times by prospective buyers. The Bill will allow for the determination of saleability from the commencement of an intent to sell and will reduce the likelihood of sales falling through. The documents contained in the seller's pack will be made accessible to the seller to provide the opportunity for the seller to take a greater role in the sales process. The legislation will improve on the previous pre-contract investigation of title, to improve the process not only for conveyancers but also for lawyers.

Growing and serious delays in the conveyancing process are leading to property sales falling through. A survey conducted by the Institute of Professional Auctioneers and Valuers, IPAV, has found that four out of every five agents say they have seen sales fail because of this problem. A total of 26% said it occurred frequently and 4% said it happened very frequently, while 70% acknowledged it happened occasionally. This Bill will reduce conveyancing transaction times and, as a result, streamline the costs associated with that, help to cut out gazumping and gazundering, allow for more certain and transparent transactions for property and afford protections to sellers and, more crucially, the consumer. In an Ireland Thinks poll of 1 September, of the 1,228 respondents, 77% were in support of the measures set out in the Bill, while 73% acknowledged that prolonged delays in conveyancing had led to significant challenges for purchasers. The research by the IPAV shows that 81% of estate agents presiding over the sale of property found the delay to be either frustrating or very frustrating, ultimately for the consumer. This delay adds costs to conveyancing, and it is so often only when a property has gone sale agreed that the assembly of the documentation required to give effect to the sale begins. This measure will prescribe in advance that a statutory process must be followed by all property service professionals. Before they place a property on the market, they will be bound to ensure all the necessary documentation is in place, thereby ensuring for the seller the efficiency of the process, and for the consumer who is seeking to buy, certainty on the transparency of the process. It will further ensure that what we see is what we will get and that what is being bought is as it is alleged to be.

I will now outline the content of each section. The Bill contains seven sections. Section 1 deals with interpretation and defines some of the terms used in the Bill.

Section 2 will empower the Minister for Justice of the day to make regulations as provided for under the Bill.

Section 3 sets out the main provisions of the proposed seller's legal pack and what each pack should contain. One of the key drivers behind the introduction of the seller's legal pack is a desire that potential buyers should be equipped with detailed property information before buying a property in order that they will make informed decisions. This will also mean the process will be much less stressful for potential buyers because they will be provided with all the information prior to making an offer. Section 3(1) outlines the essential documents required for a sale to proceed, whereas section 3(2) outlines the documents that may be included in the seller's legal pack, at the discretion of the seller, should they be of interest to potential buyers. The documents contained within section 3(1) and (2) will enhance the transparency of property transactions and will reduce transaction times, which will further reduce seller and vendor liability. Section 3(10) will provide for exceptions for document inclusion but if there is anxiety, either on behalf of the agents or members of the legal profession, this will not affect a fee structure that already exists or the work they normally undertake as part of their work. It will merely front-load the process to provide certainty and efficiency to all.

Section 4 will provide for exemptions to the compilation of a seller's legal pack where sales may be complex, such as a portfolio or mixed sales or where sales are made under unique or other circumstances such as within a family or occupied properties. The section is necessary to address the fact some sales may occur under circumstances where a seller's legal pack may not be feasible or useful, such as where no marketing is required, perhaps to a family member.

Section 5 deals with the age of the seller's legal pack of documents when first included. This is an important element of the Bill that will ensure only up-to-date information derived within a maximum of 12 months from the date the property was put on the market can be included in the documents. The documents contained in the seller's legal pack must be dated no earlier than the date that falls, as I said, a full 12 months before the property was placed on the market. I believe this is common sense and is self-explanatory. The section will provide for a quick process when compiling the seller's legal pack because it will ensure original documentation is provided alongside documentation of subsequent alterations to the property that would be of interest to buyers. This will ensure the seller's legal pack is compiled with valid documents and will provide a measure of transparency in the seller's legal pack.

Section 6 deals with enforcement and proposes that the enforcement arrangements will be carried out by the seller's property service provider. The section is necessary for those involved in the buying and selling property markets to understand their requirements in respect of the seller's legal pack.

Section 7 sets out the Short Title and the commencement dates of the sections after enactment.

The Bill is designed to act on the reality that exists in conveyancing systems, and with it, we have the opportunity in this House to take some important steps to create a new dynamic intended to tackle the unnecessary and time-consuming delays plaguing the purchase of property in this country. I commend the Bill to the House.

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