Dan Boyle (Cork South Central, Green Party)
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Question 1128: To ask the Minister for Justice, Equality and Law Reform the measures he intends to take to outlaw the practice of gazumping in regard to property sales. [1369/06]

Michael McDowell (Dublin South East, Progressive Democrats)
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I commissioned the auctioneering-estate agency review group in July 2004 to examine the licensing and regulatory requirements for property practitioners against a background of serious public concern regarding certain selling practices in the property industry. The review group reported in July 2005 and made a number of recommendations aimed at protecting consumers from such practices as gazumping. It noted that it is sellers who gazump, and that, barring any changes to the law of contract, it will always be the right of the individual sellers to raise or lower their price demands or to withdraw their property from sale, and of buyers to reduce purchase offers or to back away from a purchase, up to the point where contracts have been signed by both parties and exchanged. In its report on gazumping — LRC59-99 — the Law Reform Commission, after extensive examination of the issue, concluded that "the only practicable reforms are to take steps to inform buyers, and in that way, to protect them".

Following Government approval, I am proceeding to establish a new regulatory authority which will assume responsibility for the licensing and regulation of all auctioneering, estate agency, property letting and property management service providers. The new regulatory authority will have a consumer information function aimed at ensuring that consumers entering into contracts to purchase a property will do so fully understanding what rights and entitlements or otherwise are conferred on each party by the payment of a deposit. It will not have a function in relation to builders and property developers who are selling their own property. However, in the case of any auctioneer acting as agent in such transactions, it is intended that the regulatory authority will have an oversight function regarding the services they provide. It will also have a complaints mechanism for the public who have not achieved satisfaction through any existing mechanisms.