Neale Richmond (Dublin Rathdown, Fine Gael)
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553. To ask the Tánaiste and Minister for Justice and Equality if her attention has been drawn to the practice of listing houses as available for bidding that are sale agreed; if she will take steps to limit same; and if she will make a statement on the matter. [7478/22]

Helen McEntee (Meath East, Fine Gael)
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As the Deputy may be aware, the provision of property services to consumers in Ireland is subject to a detailed legislative framework of licensing, regulation, monitoring and enforcement, under the Property Services Regulation Act 2011.

The Act also established the Property Services Regulatory Authority (PSRA), a statutory regulatory body specifically tasked with responsibility for licensing and regulating property services providers (auctioneers, estate agents, letting agents and property management agents).

Furthermore, the Property Services (Regulation) Act 2011 (Minimum Standards) Regulations 2020 (S.I. No. 564 of 2020), which came into effect on 30 November 2020, set out a range of minimum standards to be observed in the provision of property services by licensees to their clients. Failure to comply with the standards set out in the Regulations amounts to improper conduct.

There is no particular provision in the Land and Conveyancing legislation, in the Property Services (Regulation) Act 2011, or in related regulations, that deals with the situation as described by the Deputy.

A “Contract of Sale” for those buying and selling a property specifies exactly what is being sold and the terms and conditions of a sale. A contract, once signed by both parties, binds the parties to the completion of the transaction. Disputes regarding contracts are a matter for the law and the courts.

It is important to note that in a private treaty sale the licensee is contracted by the vendor and has no contractual relationship with potential buyers or bidders. The licensee is selling the property for the vendor, is acting in the vendor’s best interests, and takes instructions from the vendor. Ultimately, it is the vendor's decision on the price they wish to sell the property for and to whom.

The Deputy's question highlights similar issues to when “Gazumping” occurs, i.e. where there has been an oral pre-contract agreement between a buyer and a seller, including the payment of an initial “booking deposit”, for the sale of property at a particular price, and, subsequently, the sellerrefuses to execute the contract due to seeking a higher price from the, or another, prospective buyer. The non-enforceable relationship between the original parties is preserved by use of the term "subject to contract".

The problems associated with gazumping were examined in detail by the Law Reform Commission in its 1999 "Report on Gazumping" (LRC 59-1999). The Commission noted that delays arising between the conclusion of negotiations and completion of the formal contract were usually for the benefit of the intending purchaser, for example, to ensure the availability of funding for that property, or to ascertain if there were any legal difficulties in relation to the title. The Commission concluded that the only practicable reforms were to improve the information available to intending purchasers and to regulate the terms according to which booking deposits are paid and accepted. It did not recommend any specific legislative reforms to the legal framework within which gazumping occurs.

There are no plans at present to introduce or amend legislation in this area. However, as with other policy and legislative reforms, interested parties are welcome to make submissions on this matter.

The Property Services Regulatory Authority published a detailed “Guide for Users of Property Services Providers in Ireland" which explains the legal position in relation to gazumping and related matters such as payment of deposits and signing of contracts. That guide is available on the Authority's website at: www.psr.ie.