The Irish Independent reports to-day that a number of mortgage brokers are being investigated over allegations that they shared financial information with estate agents without the consent of the client. The Irish Auctioneers & Valuers Institute (IAVI), which represents 2,000 qualified auctioneers and estate agents, is not aware of breaches of the Data Protection Act or other legislation by its members in their dealings with mortgage brokers and intermediaries.

The Bill to establish the National Property Services Regulatory Authority, which will go before the Oireachtas this autumn, will oblige estate agents to notify clients in writing that they act as mortgage intermediaries when they confirm the client's instructions to sell the property. The Bill will also prevent an estate agent from giving preferential treatment to a prospective buyer if the buyer is willing to place the mortgage business through the selling agent. These practices are already regulated under the IAVI Rules of Conduct, demonstrating the benefit of the public dealing only with agents who are members of a self-regulated professional body, such as the IAVI.

The IAVI understands, however, that the NPSRA Bill will not prevent estate agents continuing to act as registered mortgage intermediaries in respect of properties they offer for sale on behalf of clients. The IAVI understands, from discussions with the Financial Regulator's Office, that the Regulator's guidelines do not prohibit this practice. The guidelines call on the intermediary/agent to point out the potential conflict of interest to all concerned, but permits them to act in both capacities with the informed consent of the parties.

One of the first questions most estate agents ask prospective buyers is the price they can afford to pay for a property. The public, in almost all cases, will offer that information readily because they realise that estate agents need the information so that the time of all concerned is not wasted. The fact that someone can afford to pay a particular price does not mean they will be willing to do so. That said, should brokers and agents have colluded to present false facts to buyers to maximise selling prices, the IAVI would condemn such actions.

Prospective buyers can guarantee that information about their borrowing ability does not reach the selling agent by securing their mortgage through an independent source.

Should evidence of collusion by IAVI members be presented, the IAVI would investigate it and take action as appropriate. The IAVI's Disciplinary Committee includes representatives nominated by the Law Society, IBEC and the Consumers' Association of Ireland. Following a 100% audit of members' compliance, over 40 members of the IAVI lost their membership in 2008 due to their failure to evidence compliance with the Institute's requirement that its members participate in ongoing post graduate education.

Media contact: Carina O'Neill, Bracken Public Relations 01-6773277

Carina O'Neill
Bracken Public Relations
Tel: +353 (0)1 677 3277
Mob: + 353 (0) 87 222 8124
Web: www.brackenpr.com

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