Real Estate Agents Act Protects Property
Investors
“As things stand it is open to anyone to start
a business as a real estate agent irrespective of the lack of experience
in the area and the professional integrity that is needed.” Fiji Trade
Minister Tom Ricketts
Real estate agents in Fiji
continue to highlight issues they believe are not fully
addressed in the wake of a Real Estate Agents Act to be fully
operational in a little over a month’s time.
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At the launching of the first
awareness program for the members of the real estate agents
fraternity today, real estate agent Ben Padarath said that only
the licensed local agents should be authorized to sell the local
properties.
“You go on the Internet, they
(overseas agents) sell it (local properties) openly in the
market. That should not be allowed. They should go through a
local licensed real estate agent,” he said.
“We can’t go in Sydney and
Auckland in the open market. So why do they come and sell in the
open market here. ”
However, Trade Minister Tom Ricketts, who launched the workshop
reassured agents that the Act is quite clear on this – 51 per
cent local equity and 49 per cent foreign.
Ricketts said even if they
(overseas agents) sold in the open market, the settlement still
had to be done in Fiji. “There is no regulation at the moment,
but when that happens we can then say, sorry, you are not doing
this through a real estate agent, there is a settlement that
would have to take place here.”
But another real estate agent Josefa Dulakiverata didn’t believe
this was an issue. He said overseas companies might have their
own agents to sell properties for them.
“If they have to come here, they have to abide by the laws of
Fiji. You cannot tell a property owner these are its rules on
who should sell the property, or who should they engage, be a
local or overseas buyer.
A total of 120 real estate agents from the Central Division
attended the workshop. Most expressed appreciation of the act
saying it was a long time coming.
Ricketts noted that a recent investigation undertaken by the
Real Estate Licensing Board showed that there are 109 agents
operating in the country (Central and Eastern Division 64,
Western Division 39, and Northern 6). There was a suspicion that
the number could be higher though.
“As things stand it is open to anyone to start a business as
a real estate agent irrespective of the lack of experience in
the area and the professional integrity that is needed.”
He said the Real Estates Agents Act would be fully operational
from July 1, 2008 and told agents that it would be in their
interest and those intending to enter the field to be registered
with the board.
Ricketts said these provisions would ensure that only suitable
persons and companies would be able to obtain a license and also
that the licensing procedures are conducted in a transparent and
in a fair manner.
Harcourts’ Shivas Singh wanted to know how they as real estate
agents would be protected against those agents who are not
registered, and how the board was going to regulate the industry
“because right now anybody can become a real estate agent”.
Singh said that he didn’t believe this was going to change for
the next several years.
However, Ricketts said under the Act, a person who is not a
holder of a license is committing an offence “and in addition to
any fine that may be imposed is liable to forfeit to the state
any money received by him or her by way of commission, profit or
remuneration or any services of worth performed by him or her as
unlicensed real estate agent”.
Ricketts also told guests that the most important transaction
many people will make in their lives is the purchase or sale of
a house adding that while real estate agents are specialized in
these transactions and will handle vast sums of money,
safeguards are needed to protect clients’ funds.
He said it is important to have qualified professionals and the
necessary legislation to monitor and scrutinize the activities
of the real estate business in Fiji.
“The sale or rent of property does not merely involve an agent
as a salesperson or an intermediary. Real Estate transactions
require agents to have extensive knowledge of property matters,
professional expertise and personal integrity,” Ricketts said.
He said that while it is currently not the requirement that real
estate agents have to have authorization from any one to employ
salesperson, as from July 1, approval would have to be sought
and obtained from the board from the employment of persons.
He also highlighted that it was a requirement under the Act that
businesses are adequately supervised and that branch offices are
under the control of branch managers approved by the board.
“The law is so tight that when these branch managers are
transferred from one location to another that approval will have
to be first obtained from the board as well.”
Further, the Act imposes on agents a number of important duties
and responsibilities such as the requirement to provide the
principal with a written contract of agency and the maintenance
of trust accounts.
It also contains detailed provisions as to how real estate
agents must deal with monies received and for the audit of
accounts. These provisions provide safeguards to prevent misuse
of clients’ funds and other fraudulent activity.
The Act empowers the board to take disciplinary action to cancel
or suspend licenses and also allows the minister to hear appeals
on the decision by the board.
There is a provision in the act that makes it an offence to
charge commissions or other fees in excess of those prescribed
by regulations.
“It has been a matter of public concern that some agents charge
unreasonable commissions and in collusion with other
professionals such as values and lenders, inflate prices of
properties. As a result, buyers are sometimes not able to meet
repayment requirements.”
Ricketts said that it was recognized that the Act will not
resolve all the problems in the real estate industry such as
escalating property prices.
“However, it will provide strong consumer protection by stamping
out undesirable practices by real estate agents and will ensure
that only those persons and companies that can offer acceptable
levels of professional expertise, standards of services and
integrity are allowed to operate in the industry.” .
(2008/05) Originally published on
www.fijitimes.com |
