Estate Agent Fined €10,000 for Misusing Client Funds
Co Wicklow Agent Penalised for Early Withdrawal of Deposit
An estate agent from County Wicklow has been ordered to pay a substantial €10,000 penalty after improperly using client funds intended for a land purchase before the deal was finalised.
Improper Conduct Revealed
Gabriel Dooley, operating as Dooleys Estate Agents in Greystones, received €50,000 as a booking deposit for a land acquisition. The sale ultimately failed to proceed, and the company’s liquidator sought the return of the funds. However, Mr Dooley reportedly refused to reimburse the deposit.
Regulatory Action Taken
Following the refusal, a complaint was lodged with the Property Services Regulatory Authority (PSRA), the national body overseeing property services. An extensive investigation by the PSRA found Mr Dooley guilty of improper conduct for breaching client money regulations. Specifically, he withdrew funds from the €50,000 held in his client account before contracts were signed or the sale was completed.
Penalty Confirmed by High Court
The PRSA board imposed the €10,000 financial penalty for this breach. The decision was subsequently upheld by the High Court earlier this week. Mr Dooley had already settled the fine with the PSRA prior to the court’s confirmation.
PSRA Powers Explained
Under the Property Services Regulation Act 2011, the PSRA has the authority to investigate complaints against licensed agents. Investigators can gather evidence, and their findings are reviewed by the PRSA board, which can issue sanctions ranging from warnings to licence suspension or significant financial penalties of up to €250,000.
In Ireland, estate agents are required to hold client funds in separate, designated accounts. This protects consumers and ensures that money is only released upon the agreed terms of a transaction. For instance, the Central Bank of Ireland mandates strict client money handling procedures for financial services firms, reflecting the importance of safeguarding customer assets.