Quacks invasion into real estate

Professionals in the property sector insist that more than half of the real estate agents in the country are trading illegally, as they are not adequately trained, thus lowering the standards. NJOKI CHEGE investigates

There is not a doubt that the real estate industry is a multi-billion industry in the country today. A career in this industry is, therefore, appealing to many, judging from the numerous real estate firms including agents and valuers in the country.

But beneath this lustrous industry, is a looming danger — and it solely lies in the real estate practitioners in the country.

More than half of them are barely trained in the best practices of the industry, yet they are the key drivers of this multi-billion industry.

According to the University of Nairobi Land Economics scholar Prof Paul Syagga, the Estate Agents Act, which was enacted in 1984, clearly stipulates who should practise estate agency and the rules that govern this industry.

“In Chapter 533 of the Laws of Kenya, the Estate Agents Act clearly stipulates who should practice estate agency, and it contains the code of conduct governing the profession,” says Prof Syagga.

But the misfortune lies in the fact that this Act is not followed to the letter, making the industry porous and open to quacks who have introduced several malpractices into the industry.

Take for instance Section 13, which clearly outlines the qualifications of an ideal real estate practitioner. Besides being registered with the Estate Agents Board, one is supposed to be a full member of the Institution of Surveyors of Kenya, a holder of a degree, diploma or license from a university or college or school recognised by the board. 

‘Professional’ quacks

But what we are seeing today is a totally different picture, with many estate agents not having  satisfied the qualifications mentioned in the Act.

“That is where the problem lies as the industry has too many quacks. The Act provides a lower threshold than any other profession, making it easy for just about anyone to enter the industry,” he says.

Surprisingly, at the moment, the only course available in training estate agents is a one-year diploma course in Real Estate and Construction Management. This course is available at the University of Nairobi and now recently at the Kenya Polytechnic University College. On average, the University of Nairobi trains only a paltry of 20 students per year in this course.

This, therefore begs the question; what happens to the people in other parts of the country who might not have access to these trainings?

“There is need for the Act to be amended to increase the threshold and bring some seriousness to this profession. It is for this reason that there is a lot of malpractice in the industry,” says Prof Syagga.

So how do you know a genuine real estate agent?

Institute of Surveyors of Kenya Chairman Collins Kowuor says that the Estate Agents Registration Board (EARB), which is located at the Ministry of Lands, is mandated to register estate agents. A registered agent can be recognised by the abbreviation REA that appears after their names.

?Says Kowuor: “EARB renews the?members’?licenses on an annual basis so?it’s?important that a person seeking to know the status of a?practitioner?should check on the current registration status.?This can be done through contacting the EARB or ISK Secretariat.”

According to Kowuor, the minimum requirements dictate that one should be registered with EARB and must  be a degree holder and must  pass the diploma exam by ISK on Valuation and Estate Management.

Diploma holders can work as assistants to the above-qualified practitioners?

Charles Mwangi, a valuer and estate agent who has been in the industry for 12 years, agrees that there are more quacks than professionals in the industry.

“The quacks have affected the credibility of other professionals in the industry. This is particularly sensitive because this profession involves risk management and handling people’s money,” he says.

Mwangi notes that the profession is  abused due to lack of control by the board, thereby exposing clients to malpractises and corruption.

Malpractice

If you have ever been through the process of looking for a house, you will agree that it is not only a tedious process, but also very tricky judging from the number of quacks in the industry. Chances are three out of five house-hunters will be conned by an individual claiming to be an agent.

But you will also be surprised to know that you are not supposed to pay for anything before you get that house.

The Act stipulates that only the landlord is supposed to pay the estate agent a certain percentage of money for managing their property. But as is the norm, real estate agents are receiving money to the tune of millions from ignorant and unsuspecting tenants.

“The law is very clear that the estate agent should receive only one payment from the landlord in order to cater for the costs accrued to looking for tenants,” says Prof Syagga.

Enforcing rules

Kowour agrees that while there are many quacks, the industry is striving to enlighten the public as they implore the Board to legally enforce the practice.

Says he, “We are aware that there are several issues ailing the industry. There is need to reform the industry. We have advised the internal security administration and local authorities to ensure that those without our annual membership certificates and annual license be  arrested and charged.”

So far, however, nobody has been arrested and brought to justice. In a bid to create public awareness, and spread the knowledge on the best practices, this profession, is encouraging these institutions to devolve and discussions are at advanced stages.

Says Kowuor; “We are even establishing a real estate training centre for Eastern Africa Region. Already Uganda and Rwanda are in it. We are organising short-term courses which will be useful to Kenyans interested in real estate training.”

Last year in May and November, ISK rolled out one-week trainings in various parts of the country including Nairobi and Mombasa.

But as Prof Syagga advises, the estate agents board must crack the whip by being proactive and going round the country smoking out the quacks in the industry.

The board is also advised to liaise with training institutions to introduce more courses and even develop an integrated syllabus to create some standards in the profession.

“You cannot control a profession, if you haven’t set some standards,” concludes Prof Syagga.