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Property Services Regulatory Authority

Dáil Éireann Debate, Wednesday - 13 January 2021

Wednesday, 13 January 2021

Questions (724)

Richard Bruton

Question:

724. Deputy Richard Bruton asked the Minister for Justice if she will consider extending the issues on which the Property Services Regulatory Authority can adjudicate from issues of professional negligence or misconduct to embrace also an ombudsman’s adjudication, as applies for the financial services sector, since the consumer is similarly exposed. [1360/21]

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Written answers

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 (afterwards ‘the Act’). 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).

Under the Property (Services) Regulation Act 2011, any business or individual who provides a property service (other than those who are subject to a similar licence or authentication scheme in another EU Member State) must hold a valid licence from the PSRA. The licensing of property services providers ensures that licensees comply with certain standards aimed at ensuring protection for their clients. For example, licensees must possess specified minimum qualifications, have available to them professional indemnity insurance and pay an annual contribution to the Compensation Fund.

The PSRA is empowered to investigate complaints of improper conduct made against licensed property services providers, and to launch investigations on its own initiative for the purpose of ensuring compliance by property services providers with their statutory obligations. Where a finding of improper conduct is made by the PSRA, it can impose a range of sanctions: namely, issue a reprimand, warning, caution or advice, suspend or revoke a licence, or direct the licensee to pay a financial penalty (i.e. pay up to €50,000 into the Property Services Compensation Fund, up to €50,000 to the PSRA towards the cost of the investigation, up to €250,000 to the PSRA by way of financial penalty or any combination of the foregoing).

The Act provides for the establishment of the Property Services Compensation Fund which is funded by annual contributions from licensees, and maintained and administered by the PSRA. A person who has suffered financial loss as a result of dishonesty on the part of a licensee, or any principal officer, employee or agent or former principal officer, employee or agent of a licensee arising from the provision of property services on behalf of the licensee, is entitled to apply to the PSRA for a grant from the Fund to compensate him/her for the loss sustained as a result of the dishonesty.

Businesses that are licensed to provide property services (property services employers and independent contractors) are also required under the Act to have in place professional indemnity insurance. This insurance must cover both the business, and all principal officers and employees engaged in the provision of property services on the business’s behalf. The minimum requirements in respect of professional indemnity insurance are set out in the Property Services (Regulation) Act 2011 (Professional Indemnity Insurance) Regulations 2012 (S.I. No. 182 of 2012).

While my Department keeps the operation of the Property Services (Regulation) Act 2011 under review, there are no plans at present to amend the Act in the way suggested by the Deputy.

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