Move to flush out false realtors

BABOKI KAYAWE
Staff Writer | Friday February 26, 2010 00:00

 

Montshwari Mooketsi, who is also the former president of the Real Estate Institute of Botswana (REIB), told a press conference at Maharaja Conference Centre in Gaborone yesterday that there are currently 250 registered estate professionals, that is estate agents, property auctioneers and property valuers. However, the numbers of people practising without permission grows by the day and contributes to the soaring of property prices. 

Mooketsi said his organisation will undertake a thorough assessment of the industry beginning March 1 when all professionals in the property sector will be registered.

He said it has come to their attention that a considerable number of people have fallen victim to unscrupulous agents who do not abide by any code because there is no regulation.

'If the industry was regulated, buyers would get real value for their money as valuation of property and pricing would be done by knowledgeable people,' said Mooketsi. 

Market factors such as severe shortage of serviced land and tribal land also have a huge bearing on the market. 'The economic factors have a bearing on the market because when demand outstrips supply, prices shoot up,' he said.

REIB was established following the 1990s land scandal in Mogoditshane area in which there was a mushrooming of fly-by-night real estate agencies that cheated a considerable number of people of their hard-earned money.

But there was also a need for a regulatory body, hence the formation of the advisory council in 2004. However, the council has not been very active because there was no regulation.

'After the Act in 2003, the Real Estate Advisory Council was formed, but we will be operational starting March 1,' Mooketsi said. 'The delays were due to the Regulation which was not availed until September last year.'

The Real Estate Advisory Council was formed in 2004, after the passing of the Real Estate Professionals Act of 2003. According to the Act, the role the Real Estate Advisory Council is to receive applications for admission for practice as registered estate professionals, maintain a register of registered professionals and to determine the application fees and annual subscriptions and to generally regulate the profession.

Mooketsi said they will continue to work with REIB to ensure that professional codes are adhered to and that only registered agents practice. However, he says, being registered with REIB does not guarantee that the advisory council will approve such an applicant.

Mooketsi is optimistic that law enforcement agents will intervene in estate-related crimes. Though a deadline for the registration of estate professionals has not yet been set, Mooketsi said those caught practising illegally will be eligible to a fine of P50, 000, two years' imprisonment or both.