Banks can choose valuers - Seretse

OLIVER MODISE
Staff Writer | Thursday August 9, 2007 00:00

 

Responding to a question from the Member of Parliament for Bobirwa Shaw Kgathi on Tuesday, the Minister of Lands and Housing Dikgakgamatso Seretse said commercial banks appoint their own property valuers, like other professionals such as lawyers and accountants, using their own discretion.

'I am aware that some lending institutions insist that all applicants for loans should have the valuation of the properties subject to request facilities,' he said.

Kgathi had wanted to know which preferred property valuers are recognised by the National Development Bank (NDB), Barclays Bank and the Botswana Building Society (BBS).

He had also asked the minister to tell the house if it was procedural and within the spirit of the law on real estate for the banks and similar institutions to prescribe property valuers to customers.

Seretse said the purpose of the Real Estate Professionals Act of 2003 is to provide for the regulation of the real estate practice in Botswana and that the main thrust of the law is to register individuals eligible for practice as property valuers and estate agents.

'There is no provision in the Act or (in) the regulations that makes it mandatory for anyone to use or not to use the service of any particular practitioner ,' the minister said, adding that although the practice seems undesirable, it does not contravene the Act. A few months ago, the Real Estate Institute of Botswana (REIB) was contemplating going to court in an effort to save a number of property valuing companies from closing down.
REIB accused the National Development Bank of unfair practices in the allocation of property valuation services amid complaints by members of the public that commercial banks were choosing property valuers for their customers.