A new code of practice for estate agents and auctioneers provides for complaints from the public to be investigated by a disciplinary board.
However, under the code, the board will have no power to impose fines or suspend estate agents from practice who are found guilty of misconduct. The only sanctions provided for are a private or public warning, or a "recommendation" to the agent's representative body that it be suspended from membership.
Minister for Justice Brian Lenihan yesterday launched the code of practice drawn up by the new National Property Services Regulatory Authority (NPSRA), as well as a public register of licensed auctioneers and estate agents.
Both the code and the register will remain voluntary until an Act formally establishing the NPSRA is passed by the Oireachtas next year.
Mr Lenihan said that although the vast majority of property transactions were characterised by a high-quality service, it could not be denied that the experiences of some consumers in recent years had not been positive.
"I strongly believe that both consumers and the property services sector will benefit from the new structures and standards that are being put in place.
"I am convinced that the sound regulatory environment now being put in place will increase public confidence in the sector for the benefit both of property services providers and the consumers of those services."
The Minister was speaking at the opening of the NPSRA offices in Navan, Co Meath.
Almost 2,800 names are listed on the register, which includes all estate agents and auctioneers licensed by the courts to operate in the State. All are being asked to subscribe to the code, and those that do will have this information included on the register from the end of this month.
The code, which can be viewed on the authority's new website, www.npsra.ie, is binding on those who subscribe to it. It requires estate agents who identify a conflict of interest in acting for a client to inform their client and cease to act in the transaction unless requested not to do so.
The code contains a "whistleblowers' charter" allowing employees of property firms to report illegal or unethical activity to the disciplinary board. Allegations must be made in writing and cannot be made anonymously. Under the code, auctioneers may not disclose the sale price of a property without the consent of the client. A record of all offers made for a property must be kept and strict rules are laid down for the operation of client accounts.
Estate agents are required to tell clients in writing of their fees and outlays in advance of any agreement being signed.
The disciplinary board comprises the chairman of the NPSRA and six members, two of them from the property services industry and two from consumer groups. Where a complaint against an estate agent is upheld, the agent will be liable for the costs of the hearing.
The code also provides for an appeals procedure. In time, the NPSRA will take over the regulation of estate agents.
