Requirement for property service providers licence
- Details
- Created: Wednesday, July 15 2015 10:32
As and from 30th May 2012, a new licensing regime applies for property service providers.
This requires you to obtain a property provider’s service licence from the Property Services Regulatory Authority (“PSRA”) if you intend to carry out services in the following areas:
- Auction of property;
- Purchase or sale of land;
- Letting of land; and
- Property management services.
Section 28 of the Property Services (Regulation) Act, 2011 provides that it is an offence to carry out property services without a licence. The offence is punishable on summary conviction, with a fine or imprisonment for a term not exceeding 12 months or both, or on conviction on indictment, with a fine or imprisonment for a term not exceeding 5 years or both.
A separate application must be made in respect of each category of property service. However, a property service provider may, if all the licensing requirements are met, hold a single licence covering one or more of the different categories of property service.
The application process entails the submission of certain documents to the PSRA in advance of 6th July 2012, to include the relevant application form for each category, tax clearance certificate, evidence of qualifications and evidence of professional indemnity insurance. The application process is quite detailed and is outlined on the PSRA website.
It is essential that your application is submitted to the PSRA in advance of 6th July 2012, in order to avail of the transitional arrangements under the legislation. If you are an auctioneer and have not made an application for a property service provider’s licence by 6th July 2012, then you will be in breach of section 28 of the Property Services (Regulation) Act, 2011 as outlined above.
The Property Services (Regulation) Act, 2011 also contains detailed obligations on property service providers, which include the following:
- An obligation to provide an engagement letter within 7 days of the commencement of the property services;
- A requirement to maintain client accounts; and
- An obligation to provide a vendor of property with a statement of market value, with evidence of reasonableness of the valuation and the method of calculation.
The PSRA also has a remit to set and enforce standards for the grant of licences, as well as standards in the provision of property services by licensees. The PSRA also has the power to make rules regarding the content of advertisements for the sale of property, which is designed to combat misleading descriptions of property.