Property Services (Older Regulation)

Auctioneers and House Agents (Previous Legislation)

The regulation of auctioneers had been due for a radical overhaul for some considerable time.  A  shadow regulator was established in 2009.

The former licence system provided that a person may practice as an auctioneer or house agent provided he holds a licence under the Auctioneer and House Agents Acts, 1947, 1967 and 1973 and the regulations made under them.  It was an offence for any person to hold themselves out or carry on business as an auctioneer or house agent other than in accordance with the Acts.

There were exceptions for the following types of auctions:

• Auctions conducted by Customs & Excise officers;
• Auctions by sheriffs and County Registrars;
• Auctions by Revenue Commissioners under Income Tax Acts;
• Auctions relating to items taken in distress by rate collector;
• Auctions of wreck under the Merchant Shipping Act;
• Auctions of fresh fish;
• Auctions of State property;
• Auctions by a person of his own goods.

It was an offence to carry on or represent oneself as carrying on the business of an auctioneer without a licence.

Auctioneers (Old System)

An auctioneer is an agent who is engaged to sell a dispose of property at auction or by private treaty.  This may include sales and lettings.  In practice, many auctioneers also provided business or property management, consultancy services and/ or financial or mortgage brokers.

Auctioneers carrying out financial services must be regulated under financial services legislation.  See our separate chapters in that regard.

Many auctioneers are surveyors regulated by the Institute of Chartered Surveyors in Ireland.  The Building Control Act has brought in legislation for building surveyors and quantity surveyors but not property or valuation surveyors.

Many if not most auctioneers are members of a number of associations which themselves have professional rules, requirements and standards independent of the legal system of regulation now in existence.

House Agents (Old System)

A house agent was subject to similar licensing and regulation as that for an auctioneer.  A house agent is a person who as agent for another and for reward or the expectation of award, purchases, sells or lets, offers for sale or letting or invites offers for purchasing or letting of a house other than by way of auction.  An auctioneer includes a house agent but also was aslo authorised for the conduct of sale by auction.

In practice it was unusual for persons who seek house agent’s licence only given that the auctioneer licence authorises sale by auction in addition to house agency.

House agents and auctioneers were required to obtain a licence on an annual basis from the Revenue Commissioners.  A tax clearance certificate is required.

Former Application Procedure

The application for the certificate must be accompanied by a certificate of qualification granted by the District Court, a certificate of the accounting of the Court’s offices and the appropriate excise duty or fee on the licence.

The certificate of qualification is granted by the District Court.  The certificate of the accountant is granted by the official confirming that the requisite guarantee bond required by legislation is in place.  This bond is in the sum of £10,000 (€12,269).  The amount of the bond has not been increased for inflation.

The Application is made to the District Court area in which the business is to be carried out.  If the business carried out more than one area it is made in respect of the principal place of business.

The notice of Application for the certificate must state certain matters including:

• Name and business name;
• Time and place of application.

The application must be given to the Garda Siochana and advertised in a newspaper at least 28 days prior to the Application.

Renewals (Old System)

On a second and subsequent application – an accountant’s certificate must be furnished to the Court.  This requires the accountant to confirm that the licensee has conducted accounts and client’s accounts in a satisfactory manner in the previous year.  The District Judge has discretion to grant an Application for certificate of qualification where the accountant’s certificate is not forthcoming where the applicant proves:

• That he is complying with necessary steps to comply in the future;
• That no client has suffered loss;
• That he is solvent in relation to the business of auctioneer and any other business in which he may be engaged.

In the above context an accountant means a person qualified to be auditor of a company or in the case of a person or partnership, a person with requisite independence from the firm.

An objection may be made to the issue of a certificate of qualification by members of the public.  Notice of objection must be given and lodged with the District Court.

Refusal (Old System)

The District Judge may refuse an Application for a certification qualification where:

• The applicant is not a fit and proper person to hold the certificate;
• The applicant is an undischarged bankrupt or arranging debtor;
• The applicant is under 18;
• The applicant has been disqualified under the legislation;
• The previous licence has been suspended or cancelled;
• The individual responsible or proposed to be responsible for the management of the business is a person is application would be refused.

There ws an appeal to the Circuit Court against refusal of a certificate of qualification.

The District Court has power to cancel a licence where the auctioneer or house agent is convicted of any offence involving fraud, dishonesty or breach of trust.  Cancellation, suspension or disqualification may be ordered in addition to any other punishment.

Regulatory Requirements (Old System)

Any person holding an auction must display the auctioneer\’s licence bearing the name under which he is licensed to carry out business, his address and principal place of business.  Failure to do so is an offence.

The bond required under the Auctioneer\’s Act is a deposit or guarantee bond in the sum of £10,000.  A guarantee bond is issued by an insurance company.  Its purpose is to guarantee the due performance of the obligations incurred by the auctioneer as a licensed auctioneer in relation to receipt or payment money or safe custody of property.

An application can remain with me for payment out of such deposit or to the insurance company where a person who has obtained Judgment against an auctioneer or house agent in respect of payment of money or safe custody of the property.  There are special forms for proceedings for a claim against the guarantee bond.