Tommy Broughan (Dublin North East, Labour)
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Question 445: To ask the Minister for Justice and Equality if he intends to introduce legislation to carry out a root and branch reform of the auctioneering profession in view of the role of auctioneers in promoting the property bubble and the continuation of many business practices banned in other EU jurisdictions; and if he will make a statement on the matter. [15738/11]

Alan Shatter (Dublin South, Fine Gael)
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The position is that the Property Services (Regulation) Bill 2009 provides for the establishment of the Property Services Regulatory Authority to control and supervise providers of property services, including auctioneers, and to improve standards in the provision of those services.

The statutory powers of the new Authority will include:

issuing and renewing licenses for property services providers;

specifying and enforcing qualification requirements, including levels of education, training and experience, and other requirements such as minimum levels of professional indemnity insurance, for the issue and renewal of licences;

specifying and enforcing ethical standards to be observed in the provision of property services;

publishing codes of practice, or approving codes drawn up by other bodies, for the purpose of setting standards for the provision of property services;

investigating complaints against licensees and imposing a range of sanctions in cases of improper conduct.

The Bill will also prohibit licensees from quoting estimated sales prices which are less than the advised market value of the property, i.e. the reasonable estimate, at the time of the valuation, of the amount that would be paid by a willing buyer in an arm's length transaction after proper marketing where both parties act knowledgeably, prudently and without compulsion. Where the advised market value is expressed as a price range, the difference between the upper and lower limits of the price range cannot exceed 10 percent. It may however be adjusted with the written consent of the vendor to take account of prevailing market conditions.

The Bill provides that it will be an offence in future for a person who offers property for sale by auction to bid at the auction or to procure, authorise or permit another person to bid on his or her behalf. It will also be improper conduct for a licensee knowingly to accept such a bid. Where it is established that a vendor has bid for his or her own property, or arranged for another person to do so, the purchaser may refuse to complete the contract for sale without incurring any civil liability. Where property is sold by private treaty rather than by auction, the licensee will be required to keep a record of all offers received including conditional acceptances.

Finally, the Bill provides that a licensee acting for a vendor may not provide a financial service to an intending purchaser of the property without the prior written consent of both parties. The Bill has already been passed by the Seanad and is currently awaiting Dail Committee Stage.