Regulation of Real Estate Agency Agreements raw
Real Estate Agents Licensing Board chief executive officer Virisila Tuimanu has pointed out that the commission has been receiving various complaints on their regulatory processes. Some of these allegations are touching on a much needed legislative review of Real Estate Agents Act of 2006. According to the claims, the agents’ and sellers’ agreement contained in the Standardized Real Estate Agency Agreements is unfair. This provision states that payment of property that is above the seller’s agreed price will be the agent’s commission.
The board guidelines under the regulation provision include participating and completing courses, programs and activities listed. Ms. Tuimanu also said that the board discovered property and land issues are not clear from the complaints lodged. She revealed that interested parties seem unable to identify who represents the agency principal from the dealers they engage. As a result, she explained that the board had to standardize all regulation provisions meaning that the agents’ details have to be included in all agreement contracts. Apart from the standardized clauses which are the first requirement the board also allows agents to make additional provisions for contracts. Failure to follow this guideline will result to license renewal cancellation or suspension of the agency disciplinary measures.
Ms. Tuimanu also revealed that the board had received complaints of cases where agents advertise different property value from the one agreed upon by property owners. In response, the board has ongoing measures to review criminal provisions which do not include property owners. She further pointed out that the board is keen in handling complaints lodged in a systematic manner without necessarily doing away with the regulation of contractual agreements. Stakeholders, in consultations, have also advised the board to include property number and agency TIN in contracts to avert cases of ambiguity.
Majority of the agencies who had adamantly refused the idea of the board regulating their commissions, reluctantly accepted when it was revealed that its regulation ability would also be kept in check galarson.com. The agents pointed out that Fiji’s real estate market was tiny compared to markets in New South Wales and Queensland where this idea was poached.
Though the board has not officially commented on the way forward regarding this issue, the requirement to include standardized provisions in contract agreement is viewed as an indirect solution to the problem. Ms. Tuimanu added that real estate market in Fiji is not small, but is a viable and capable industry that is steadily growing.