New minimum standards introduced for property services providers

New minimum standards introduced for property services providers

Helen McEntee

New minimum standards for auctioneers, estate agents, letting agents and property management agents have been introduced through secondary legislation.

Justice Minister Helen McEntee today signed a statutory instrument consenting to the making of regulations by the Property Services Regulatory Authority (PSRA).

Failure to comply with the standards set out in the regulations will amount to “improper conduct” and could give rise to the imposition of a sanction, including a monetary penalty or the suspension or revocation of a licensee’s licence by the PSRA.

Ms McEntee said: “Today’s announcement builds on the standards which are currently in place for property services providers. Our goal is to ensure continued delivery by property services providers of a professional and high standard of service to their clients and equally that clients are informed of the standards which they can expect when they engage a property services provider.”

The Property Services (Regulation) Act 2011 sets out the obligations of auctioneers, estate agents, letting agents and property management agents in the provision of property services aimed at ensuring protection for their clients. Both businesses that provide property services, and their employees who provide such services, are required to be licensed.

These new regulations require that:

  • Where a licensee holds a security deposit in relation to the letting of land or property, which is due to be paid to a client or returned to a tenant, the licensee shall make the payment to the client or tenant as provided for in the letter of engagement or, if not specified, not later than 10 working days after the day the tenant vacates the property.
  • Where a licensee holds a booking deposit in respect of the sale of land or property, which is due to be paid to the client or refunded to another person, the licensee shall make such payment or refund not later than 10 working days after receipt of written instructions from the client or after the day on which the deposit is due to be refunded.
  • A licensee shall refund any unused advertising outlay to a client within the timeframe provided for in the letter of engagement or, if not specified, not later than 10 working days after the conclusion or termination of a property services agreement.
  • A licensee who receives a payment from a tenant on behalf of a client, shall transfer the payment to the client within the timeframe agreed in the letter of engagement or, if not specified, not later than 30 days after receipt of the payment.
  • A licensee must not claim to possess experience, competence, training or resources, including financial resources, in respect of the provision of a property service, which he or she does not possess.
  • A property services employer shall not direct, or facilitate in any way, an unlicensed individual to provide a property service except where the property service comes within a particular exemption.
  • A licensee shall not seek or accept any form of inducement in respect of the provision of a property service.
  • A licensee shall not knowingly produce, publish or circulate, or cause to be produced, published or circulated, by whatever means, false or misleading advertising information.

Ms McEntee said: “I thank the Property Services Regulatory Authority for the significant amount of work it has undertaken in completing these regulations following extensive consultation by the Authority.”

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