A new public database which will record details of all future letting arrangements in the Irish commercial property market and rent reviews under those leases is expected to have a significant impact upon future negotiation of leases and rent reviews.
Property Services (Regulation) Act 2011
The Property Services (Regulation) Act 2011 (the "Act") provides for the establishment and maintenance of a public database containing details of letting arrangements and rent reviews in the commercial property market in Ireland (the "Commercial Leases Database"). In its inception, the key purpose of the Act was to set up a new statutory body (known as the Property Services Regulatory Authority (the "Authority")), which will regulate auctioneers, estate agents and property management agents. But at a late stage in the legislative process new provisions were added to the legislation also making the Authority responsible for publication of residential property sales prices and the Commercial Leases Database.
The Authority was established on 4 April 2012 and is expected to establish the Commercial Leases Database and to publish information on residential property sales prices in Ireland within the next few months. This information is intended to provide transparency and restore confidence in the property market.
In relation to residential property sales, details such as the address of the property, the price at which it was sold and the date of the sale are to be made freely available to the public on the Authority's website. At the Authority's discretion this may include information relating to sales of residential property prior to commencement of the legislation.
The Commercial Leases Database
What leases are affected?
The Commercial Leases Database will contain considerable detail relating to every commercial lease entered into on or after 3 April 2012. The Authority also has discretion to include more limited details (lease date, property address and description, term and rent) relating to leases granted in the five years prior to 3 April 2012. If the Authority does so, it will obtain this information from the Revenue's e-stamping system, so there will be no requirement for a tenant of a lease granted prior to 3 April 2012 to provide the relevant information.
What information must be submitted?
The information to be submitted to the Authority includes:
The address and description of the property; The date of the lease; The term of the lease...