Ahern Launches Guide to Buying and Selling Homes

The Minister for Justice, Equality and Law Reform, Mr. Dermot Ahern T.D., today launched a new consumer guide to help those buying or selling a home.

The Guide for Users of Property Services Providers in Ireland, a booklet produced by the Property Services Regulatory Authority (PSRA) Implementation Group is aimed at assisting the public engaged in buying and selling property, particularly those buying or selling their homes.

New rules and regulations are being introduced under The Property Services (Regulation) Bill 2009 governing the licensing and regulation of Auctioneer/Estate Agents, Letting Agents and Management Agents and the booklet sets out to guide consumers through these changes.

Speaking at the launch, Minister Ahern said: "Buying a home is probably the single most expensive and, at times, stressful transaction any person or couple can be involved in. This guide is designed to help, answering some of the key questions that arise when people are buying and selling property, particularly those buying or selling their homes."

"There is a wealth of information and help available. This guide is like a one stop shop, pointing the public in the right direction or directing them towards other sources of relevant information. I am confident this guide will prove a very useful source of information."

The Minister thanked PSRA Implementation Group for their work. "They have been working behind the scenes in advance of the legislation being enacted to provide the PRSA with procedures, rules, systems and regulations to allow them go live once the new legislation becomes law."

The Guide gives a general overview of the process involved in the purchase or sale of a property from making an offer for a property to the close of sale. It does not attempt to go into detail of all of the processes involved but simply confines itself to giving a brief overview of the process and directing consumers’ attention to other sources of useful information and professional advice which may be of assistance to them.

The booklet also addresses a number of matters that appear to be the subject of fairly widespread misunderstanding and sometimes even public disquiet. These include:

• the relationships between Auctioneers/Estate Agents their clients and buyers,
• the implications of paying a "booking deposit" on a property,
• difficulties with buying an apartment in a Multi-Unit Development,
• the relationship between management Agents and apartment owners.

It gives very clear advice to purchasers on what to be aware of when buying or selling property through an Auctioneer/Estate Agent. It advises buyers to be aware that the Auctioneer/Estate Agent will normally be engaged by a seller to sell their property.  S/he is therefore acting for the seller and not the buyer and must at all times act in the seller’s interest.

22 June 2009

Note to editors

This guide also outlines the law relating to the paying of "booking deposits" when buying a house by "Private Treaty" (i.e. other than at auction).  It advises people to be aware that when buying property in this way the payment of a "booking deposit" neither obliges nor entitles the buyer to complete the purchase nor does it impose any such obligations on the seller. The seller, in other words, remains free to sell to somebody else as no contract has been signed.

It explains that the law in this regard is aimed at ensuring that neither the buyer nor the seller will, unwittingly, legally bind themselves before signing a formal contract.

The booklet gives a very clear explanation of the implications of buying a property in a multi-unit development. It points out that if you buy an apartment in such a development what you get usually is a "leasehold interest" in the apartment itself along with the right to use common areas such as stairways, lifts, passageways etc.   It seta out clearly the rights and responsibilities which owners of property in such developments have and also addresses the many difficulties which owners can have in dealing with developers.

In this regard it sees the recently published Multi-Unit Development Bill 2009 as enhancing the position of owners and significantly refocusing the legal protections towards apartment owners.