Auctioneers & Property Services Providers – (PSPs)

New Regulatory Environment

The Property Services (Regulation) Act 2011 established the Property Services Regulation Authority (PSRA) with effect from 3^rd April 2012.  The PSRA has taken over the licensing of Auctioneers and Letting agents from the Revenue and Courts.  The legislation applies to entities engaged in:

• The purchase or sale, by whatever means, of any estate or interest in land (including buildings) wherever situated.
• The auction of private property other than land.
• The provision of property management services.

The Property Services (Regulation) Act 2011 (Client Moneys) Regulations 2012 were issued on 16^th June 2012, and outlines the compliance requirements for client money regulations.  These regulations provide for various requirements of auctioneers and estate agents with regard to the keeping of client accounts and accounting records and of Property Management Companies with regard to the handling of, and accounting for, moneys lodged to a relevant account.

The new legislation applies to Property Service Providers (PSPs).

Auctioneers, Estates Agents, Letting Agents and Property Management Agents are now regulated by the PSRA.  This applies to property located in the Republic of Ireland and to transactions in Ireland which relate to property located abroad.

The new regulatory environment provides for:

•  A comprehensive licensing system covering all PSPs;

• To set and enforce standards for the grant of licences (e.g. educational/training standards; levels of professional indemnity insurance) as well as standards to be observed in the provision of property services by licensees);
• The investigation and adjudication of complaints made against PSPs;
• The audit/inspection of PSPs operations;
• The establishment of minimum qualification standards;
• Promote increased consumer protection and public awareness of property services; and
• To establish, maintain and administer the Compensation Fund to compensate those who have suffered a financial loss due to the dishonesty of a licensee.

Brian Dignam is a Director in OSK. OSK are the leading property management accountant in Ireland auditing in excess of 400 commercial, industrial and residential companies.