Vol. 564 No. 1
287 Mr. O'Connor asked the Minister for the Environment and Local Government if immediate and effective action will be taken to protect home buyers from profiteering by developers who are increasing the price of homes from one week to another; if his attention has been drawn to the fact that there are now many examples of this; and if he will make a statement on the matter. [8714/03]
The Law Reform Commission published a report on gazumping in October 1999, which examined the practice of taking booking deposits on the sale of new residential properties. The commission found that gazumping occurred in only a handful of cases – less than 5% – and almost always on the sale of new houses. The commission concluded that the current legal position, which does not confer any interest in property upon the payment of a booking deposit, generally benefits the purchaser more than the vendor, allowing the purchaser flexibility to conduct the necessary preliminary investigations before committing to an irrevocable agreement. Among the recommendations of the Law Reform Commission report was the initiation of, and adherence to, voluntary codes of practice in the industry such as the home purchase protection pledge established by the Irish Home Builders Association.
