Rogue estate agents' days numbered
Unregistered estate agents are illegally advertising properties on social media and in newspapers.
The Namibia Estate Agents Board has embarked on a concerted campaign to clamp down on individuals or companies that perform the functions of an estate agency without the requisite Fidelity Fund certificate.
The board started investigating such rogue agencies in March and has already identified 39 culprits. Twenty-two criminal charges have been lodged with the Commercial Crime Unit of the Namibian Police.
It is suspected that more than 100 unregistered agents are advertising on social media platforms and even in the print media. Others have developed seemingly legitimate web pages to lure clients.
“We are not saying everyone advertising on Facebook does not have a fidelity fund certificate.
Everyone can advertise on Facebook but then you have to be properly registered.
The public will never know,” commented Eben de Klerk, who is working on a consultancy basis for the Estate Agents Board.
He added: “The unethical behaviour of unregistered agents induces unethical conduct in the industry in general and places the entire economy in jeopardy.”
The property sector contributes roughly 8% to the Gross Domestic Product (GDP), which is three to four times more than the contribution of the agricultural sector.
Many of these fraudsters admit that they are not estate agents but act as middlemen “only assisting” the buyer or seller or “connecting the buyer and seller”. Others use fancier but nondescript titles such as “property brokers”.
Cases were found where the illegal operators indicated that they were advertising properties “for sale by the owners” but then still charged commission on the sales.
Such fraudsters are easily identifiable because they provide only the bare minimum of information, such as a cellphone number, in their advertisements.
By law, estate agents are supposed to clearly provide the company name and personal names when advertising, and, when they present themselves directly to clients they should provide an identity card which also carries the name of the board.
“When you are interested in a property make sure the estate agent is registered or when in doubt, contact the Namibian Estate Agents Board,” said Annelie Aerla of the board.
The Estate Agents Act of 1976 stipulates that an estate agent is a person who for gain on his or her own account or in partnership directly or indirectly advertises that he or she, on the instructions of or on behalf of another person, sells or buys immovable property, lets or hires immovable property, collects or receives any money payable, or renders such a service.
There are 430 registered estate agents in Namibia at the moment.
Only 200 agencies have so far registered for Fidelity Fund certificates for 2017, which means only half of those who have legally operated as estate agents this year will be properly registered next year.
Thirty applications for 2017 have been rejected due to non-compliance.
The board intends to publish a list of all estate agents and agencies that have registered for 2017 in newspapers in January.
Kickbacks
The board said it is aware that some banks provide what is called “perverse incentives” to estate agents in the form of annual awards, gratuities, inducement fees and benefits of many descriptions in return for referrals of sale agreements from which banks obtain additional business.
The board''s president, Anne Gebhardt, said it appears some legal practitioners, especially conveyancers, pay kickbacks to agents for conveyancing work.
“These kickbacks are paid to agents while the principals (sellers) to the agency agreements are unaware of these additional incentives from which agents benefit in their personal capacity,” Gebhardt said.
The regulator said it will act against any agent who takes kickbacks or any form of secret profits.
The regulator can institute disciplinary and criminal proceedings.
The board has issued this warning to estate agents in newspaper advertisements since 21 November.
Ironically, on the same day The Namibian reported on the conclusion of one of the commercial bank''s “estate agents home loans campaign”, which boasted with an increase in agent participants by 34% that resulted in a year-on-year growth of 25% in new business generated for the bank.
CATHERINE SASMAN
The board started investigating such rogue agencies in March and has already identified 39 culprits. Twenty-two criminal charges have been lodged with the Commercial Crime Unit of the Namibian Police.
It is suspected that more than 100 unregistered agents are advertising on social media platforms and even in the print media. Others have developed seemingly legitimate web pages to lure clients.
“We are not saying everyone advertising on Facebook does not have a fidelity fund certificate.
Everyone can advertise on Facebook but then you have to be properly registered.
The public will never know,” commented Eben de Klerk, who is working on a consultancy basis for the Estate Agents Board.
He added: “The unethical behaviour of unregistered agents induces unethical conduct in the industry in general and places the entire economy in jeopardy.”
The property sector contributes roughly 8% to the Gross Domestic Product (GDP), which is three to four times more than the contribution of the agricultural sector.
Many of these fraudsters admit that they are not estate agents but act as middlemen “only assisting” the buyer or seller or “connecting the buyer and seller”. Others use fancier but nondescript titles such as “property brokers”.
Cases were found where the illegal operators indicated that they were advertising properties “for sale by the owners” but then still charged commission on the sales.
Such fraudsters are easily identifiable because they provide only the bare minimum of information, such as a cellphone number, in their advertisements.
By law, estate agents are supposed to clearly provide the company name and personal names when advertising, and, when they present themselves directly to clients they should provide an identity card which also carries the name of the board.
“When you are interested in a property make sure the estate agent is registered or when in doubt, contact the Namibian Estate Agents Board,” said Annelie Aerla of the board.
The Estate Agents Act of 1976 stipulates that an estate agent is a person who for gain on his or her own account or in partnership directly or indirectly advertises that he or she, on the instructions of or on behalf of another person, sells or buys immovable property, lets or hires immovable property, collects or receives any money payable, or renders such a service.
There are 430 registered estate agents in Namibia at the moment.
Only 200 agencies have so far registered for Fidelity Fund certificates for 2017, which means only half of those who have legally operated as estate agents this year will be properly registered next year.
Thirty applications for 2017 have been rejected due to non-compliance.
The board intends to publish a list of all estate agents and agencies that have registered for 2017 in newspapers in January.
Kickbacks
The board said it is aware that some banks provide what is called “perverse incentives” to estate agents in the form of annual awards, gratuities, inducement fees and benefits of many descriptions in return for referrals of sale agreements from which banks obtain additional business.
The board''s president, Anne Gebhardt, said it appears some legal practitioners, especially conveyancers, pay kickbacks to agents for conveyancing work.
“These kickbacks are paid to agents while the principals (sellers) to the agency agreements are unaware of these additional incentives from which agents benefit in their personal capacity,” Gebhardt said.
The regulator said it will act against any agent who takes kickbacks or any form of secret profits.
The regulator can institute disciplinary and criminal proceedings.
The board has issued this warning to estate agents in newspaper advertisements since 21 November.
Ironically, on the same day The Namibian reported on the conclusion of one of the commercial bank''s “estate agents home loans campaign”, which boasted with an increase in agent participants by 34% that resulted in a year-on-year growth of 25% in new business generated for the bank.
CATHERINE SASMAN
Comments
Namibian Sun
No comments have been left on this article