Back to school

So estate agents are to be given ethics exams. It seems cruel frankly. Like forcing wolves to take evening classes in shepherding and flock management.

But good to see that at least an attempt is being made to instill some sense of fairness and decency in a profession that is not globally renowned for either of these virtues.

Despite the introduction of increased regulation across the UAE real estate sector over the last year, there is still a lot that needs fixing in the industry that starts with the developers and continues with the mortgage companies and the real estate brokers.

The biggest abuses seem to be taking place at the very beginning and end of the property buying process.

More reports surfaced this week of developments that were launched several years ago but that have still not materialised with investors left in limbo having paid their deposits but being left unable to sell their properties on to secure a return on their investments.

The recently introduced Escrow laws should limit the likelihood of this happening in the future, yet there appears to be several developments out there where investors are still waiting for construction to start some years after paying their deposits.

While it would be inconceivable for financial regulators to allow mutual funds, for example, to take people's money without any intention of investing that money appropriately, real estate developers have been permitted to do just that on projects that have yet to make it off the drawing board.

The local mortgage industry is also operating within an extremely loose level of supervision as recent reports in this magazine have shown.

And at the end of the process, the most hapless representatives on the payroll of the bank, developer and agent assemble in a Bermuda triangle of ineptitude in an attempt to conclude the deal.

Needless to say it often ends in farce which would be comical were it not for the consequences for the buyers and sellers involved.

Gazumping, the fancy word used to describe greed in the real estate industry, is also becoming widespread as property prices advance and sellers seek to wriggle out of contractual agreements because they believe they can simply get more money by reneging on previous commitments.

It is a practice that needs to be nipped in the bud by the industry and reputable brokers must take the lead in refusing to accept the business of vendors that are known to play this game in a rising market.

So back to the ethics examinations. So far 500 have passed the test with 1,500 more expected to take the exam over the next two years. One can only hope that this produces graduating classes of honest brokers and not more wolves in sheep's clothing.

Sean Cronin is the editor of Arabian Business English.

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Who needs ethics exam first ?!
Posted by Sharif, Dubai on Tuesday 1 July 2008 at 13:54 UAE time

Before discussing the ethics in Real Estate Agents, do you yourself, generally as a writer and specially as the editor of Arabian Business Magazine, follow ethics in your job?

Who has given you the permission to insult real estate agents in this town and to use such rude words, like wolf & flock ... ??!!

It seems that you have had a bad history with Real Estate Agents. If not , it's really nonsense to be so rude and impolite to a lot of people who are bringing the most capital into this growing town.

Problems and faults happen in every business including the Real Estate industry, however who has the permission to insult to all people in a specific business??!! Despite your position , your article is absolutely non-professional!

It really seems that before RE Agents, Editors of Magazines must go back to school!

But are they going to pay heed?
Posted by Clyde, Dubai on Saturday 28 June 2008 at 13:46 UAE time


Unfortunately there is such ludicrous amounts of money (and so little time) to make it... it will be a pleasant surprise if indeed they do imbibe any of the thoughtfully planned out lectures and best practises that they will be "forced" to attend.

Articles on ethics and best practises, even when written for free here: http://realvisionhomes.com/blog/category/real-estate-agent-trends/page/2/
seem to have gone largely un-noticed in the race to make money :)

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