House auction bidding is regulated primarily through the Property Services Regulatory Authority (PRSA), which licenses and regulates auctioneers and estate agents, and by the bidding process rules followed by licensed firms, including requirements for proof of funds, bid recording, and transparent handling of offers.
The PSRA’s remit in oversight of licensed estate agents is to ensure agents operate in compliance with the legislation and ensure transparency in engaging with both their clients and potential purchasers. Where licensed agents fail to comply with the respective legislation, the PSRA may investigate complaints received, or open an investigation of its own volition.
Under Regulation 15 of the Property Services (Regulation) Act 2011 (Minimum Standards) Regulations 2020, which deals with offers to purchase property by private treaty, Property Services Providers (PSPs) must:
- bring all offers received in respect of a private treaty sale to their client (unless their client has instructed otherwise);
- acknowledge receipt of all offers in writing;
- not imply to any person including their client that an offer has been received, if this is not the case; and
- notify their client if the PSP themselves is making an offer, or if an offer has been made by someone else within the licensed business, or if the person making an offer is related to the PSP or anyone else within the licensed business.
Section 55 of the Property Services (Regulation) Act 2011 provides that a PSP must give an advised market value for land, where requested by a vendor. Section 56 states that the PSP cannot advertise the land for sale at a price less than the advised market value provided under Section 55 unless the vendor requests it to be adjusted.
I have asked my Department to examine the current bidding process in the Irish context and also to compare it to what takes place in other jurisdictions. This work will inform work going forward on this area.
