An independent authority aimed at stamping out unscrupulous practices among estate agents and auctioneers is to be established by January, Minister for Justice, Equality and Law Reform Michael McDowell said yesterday.
The National Property Services Regulatory Authority will operate on an interim footing, pending the enactment of relevant legislation "as soon as possible" next year, according to the Minister.
Once it is backed by statutory powers, the authority will be able to enforce fines and other sanctions against rogue auctioneers, including the withdrawal of licences to practice.
The move follows the publication yesterday of an expert review group report commissioned in July 2004 amid growing public disquiet about practices in the sector.
The report makes a number of recommendations, chief among them the establishment of a statutory authority to oversee the sector, which is currently self-regulated.
Mr McDowell said an excellent and professional standard of auctioneering service was available in this country.
"However, unfortunately, that is not universally the experience of all consumers of these services.
"Indeed, this Government is of the view that there is a sufficient level of consumer dissatisfaction, particularly in respect of certain property-selling practices and the absence of effective redress for clients when things go wrong, to suggest that the case for a better-regulated approach is self-evident."
The Minister said the existing statutory framework - the Auctioneers and Estate Agents Act, 1947 - was "outdated, inappropriate and inadequate for the present-day market".
As a result, he said he was bringing forward legislation next year establishing the new authority with monitoring and inspection powers.
He added the authority could do "much good work" in advance of the planned legislation by gathering information and establishing a consumer complaints and redress scheme.
The authority, due to be based in Navan, Co Meath under decentralisation plans, will be staffed initially by a chief executive and six support staff at a start-up cost of €250,000, according to the Minister.
The review group suggested the annual budget for the authority would be about €3 million - a cost which the Minister said would be recouped in part by a new licensing system.
The review group, chaired by Alan McCarthy, said it accepted most auctioneers acted in a professional and ethical way. But it was concerned "there is no appropriate system to control entry to, or set or maintain practice standards in this market". It also considered existing protections for client money to be "inadequate."
The group described as "unrealistic" the notion of outlawing gazumping, saying "it will always be the right of the individual sellers to raise or lower their price demands, or indeed to withdraw their property from sale".
In addition, it said it was impossible to force auctioneers to give an "honest" guide price. However, the review group said the regulatory authority should monitor discrepancies and impose sanctions on consistent offenders in this area.
The group also called for an end to the "reprehensible" practice among some developers of returning booking deposits to prospective buyers so properties could be "re-launched" at a higher price.
The Irish Auctioneers and Valuers Institute and the Institute of Professional Auctioneers and Valuers, both of which were represented on the review group, welcomed the report.
