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IAVI president calls for gazumping to be outlawed
Helen Rogers



NEW IAVI president John Dawson has started his year in office with a bang . . . greeting the changes the profession is about to undergo with a call for even more radical reform of the way we buy and sell houses.

Dawson, who runs John Dawson Real Estate Alliance in Carlow, says legislation to outlaw gazumping should be introduced as part of a package which would give greater statutory protection to buyers.

Auctioneers and estate agents can't respond to some of the most frequent complaints about their profession because they're bound under the law of contract to do the bidding of their clients.

"Our profession can't prevent a seller from accepting a higher bid even though the sale may be agreed but the contracts not yet signed, nor can we point out faults in a building to a buyer. Our sole duty is to carry out the wishes of the seller" A review group set up by the Minister for Justice, Michael McDowell, has recommended major changes to the licensing of auctioneers who will, when the new laws are passed, have to prove their competence and provide more substantial bonds to protect clients' deposits.

But the proposed new legislation does not cover many of the issues that buyers don't like, says Dawson. "The minister may huff and puff about a more informed consumer, but unless the relevant laws are changed, Ireland's auctioneers must continue to follow the law as it is and not as some politicians and journalists like to pretend it is for populist consumption."

Dawson says Ireland is swimming against the tide in terms of how consumers are treated in property transactions. A new Europe-wide code of ethics and standards is currently being drafted among the 25 member states but, says Dawson, Ireland is isolated in terms of the manner in which estate agents act. "Even the UK is moving closer to the European model, " he says, "though not fully embracing it."

Again, says Dawson, it comes down the law of contract and agency superseding consumer law. "I would prefer it if auctioneers and agents could act more as brokers, with the law providing more of a balance between the rights of the buyer and the seller, " he says.

In many EU countries, including France, he says both buyer and seller pay half the agent's fees so that the auctioneer's role is to ensure a fair balance between the two.




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