Louth auctioneers campaign at Dáil for updating of 1800's property law

Representatives of up to 2,000 estate agents across the country converged on the Dáil last Tuesday to impress upon all public representatives the urgency of passing legislation that they say will, among other things, take problematic, unsaleable properties, estimated to constitute almost one-third of the residential market, off sale until such time as they have undergone a process that would render them genuinely saleable.

The relevant legislation, the Seller’s Legal Pack for Property Buyers’ Bill 2021, would also protect home buyers from having their mortgage approvals, typically of six months duration, lapse. The Bill which underwent pre-legislative scrutiny in July, is intended to cut by half, conveyancing times which take four months on average.

139 submissions, representing about 2,000 agents, including among others DNG, Hooke and MacDonald, Knight Frank, and BidX1, were handed in to Leinster House urging the Government and all public representatives to ensure the Bill is passed without further delay.

Keith Duffy, Board member of the Institute of Professional Auctioneers & Valuers said Ireland’s conveyancing system dates largely from 1881 and is totally unfit for the digital age. He said it is imperative the legislation is passed to prevent aspiring buyers having sales fall through and incurring unnecessary expenditure, among other issues.

Pat Davitt, IPAV Chief Executive said the draft legislation provides that purchasers would have vital information up front when bidding on a property.

“This transparency, which already exists in public auctions and online sales, eliminates uncertainty and unnecessary costs such as engaging the services of solicitors, engineers and surveyors for properties that end up being withdrawn from sale, typically late in the process when issues around title, rights of way and other such issues emerge to the great dissatisfaction and frustration of consumers.”

The agents expressed frustration saying numerous proposals and minor reforms over the past decade have not been effective in easing delays, including the voluntary Pre-Contract Investigation of Title (PCIT) system. The mandatory proposals in the Bill would ensure the conveyancing system becomes efficient, secure and cost effective for consumers.

Specifically the Bill will:

• Offer early confirmation of property saleability and remove from the market those that can’t be sold, thus reducing failed transactions and associated costs;
• Cut conveyancing times, currently averaging four months, by up to 50%;
• Drive efficiencies similar to those in public auctions and online sales, where documentation is provided upfront and sales close within weeks
• Provide full transparency and complete information to consumers up front.

The Seller’s pack to be prepared in advance of a property going to market would contain documents such as contracts for sale, property deeds, planning documents and architect’s certificate of compliance with planning and building regulations. It would act as a natural precursor to realising what the campaigners say are the Government’s long stalled plans to introduce e-conveyancing, digitisation and property and home logbooks.

A survey of agents in April 2024 found 32% of properties on the market had defects most common in legal and planning meaning they could not be sold without work being undertaken on the title.