RICS Introduces First Global Standards for Real Estate Agency Industry

HONG KONG, Jan. 20, 2011 /PRNewswire-Asia/ -- Today RICS announces its first global guidance note on Real Estate Agency and Brokerage Standards which are intended to represent the industry best practices. This will be applicable across the world for all RICS members effective from 1 July 2011 regardless of which sector of the property industry they operate within. RICS has already submitted this guidance note to the Government for reference, and they are looking forward to seeing the standards being adopted not only by RICS members, but also by all other real estate agency practitioners.  

Mr. David Faulkner, Chairman of RICS Asia Knowledge and Professional Groups Board said,

"This guidance is an effort to strengthen member's level of professionalism in the real estate agency sector, and also to protect the rights and interests of all the parties to transactions. Most importantly, this code will apply to RICS members wherever they practice, including Hong Kong and mainland China and whichever sector they work in, not just residential. Whilst this guidance note is primarily for members who work as agents, members who work for principals: including landlords and tenants, are also expected to act in accordance with the guidance given when dealing with, or acting as, agents."

Real Estate Agency Code

The following 12 professional codes, together with other associated standards in this guidance are applicable to all agents and companies providing the agency services in the selling, buying, letting and renting of all real estate properties: 

1. To conduct business in an honest, fair, transparent and professional manner.
2. To carry out work with due skill, care and diligence, and ensure that staff employed have the necessary skills to carry out their tasks.
3. To ensure that clients are provided with terms of engagement which are fair and clear, incorporate details of complaints handling procedures and, where existing, an appropriate redress scheme and meet all other legal requirements and relevant codes of practice.
4. To do the utmost to avoid conflicts of interest and, where they do arise, to deal with them openly, fairly and promptly.
5. Not to discriminate unfairly in any dealings.
6. To ensure that all communications are fair, clear, timely and transparent in all dealings with clients.
7. To ensure that all advertising and marketing material is honest, decent and truthful.
8. To ensure that any client money is held separately from other monies, and is covered by adequate insurance.
9. To have appropriate professional indemnity/ errors or omissions insurance, to ensure customers do not suffer loss as a result of any negligent act.
10. To ensure that it is made clear to all parties for whom you are acting, the scope of your obligations to each party.
11. Where provided as part of the service, to give a realistic assessment of the likely selling, buying or rental price or associated cost of occupancy, to the client based on market evidence and using best professional judgment.
12. To ensure that any property viewings are carried out in accordance with the client's wishes, having due regard for the security and personal safety of all parties.

Mr. David Tse, RICS Governing Councilor and Chairman of RICS Hong Kong Housing Task Force commented on recent debate over the need to further regulate the real estate agency industry,

"The announcement of the 1^st edition of the RICS Guidance Note on Real Estate Agency and Brokerage Standards is timely for Hong Kong, and RICS Regulation will gear up its action to enforce compliance with the guidance. We have already submitted the guidance to the government for reference and consideration to set as the industry best practice for all real estate agents."

Guideline on advertising and marketing

In particular, RICS members are required to ensure that all statements made about a property whether oral, pictorial or written are correct and not misleading.  Also, members have to ensure that any previously interested parties and any potential buyer, inspecting or making an offer for the property after the date of the change, is given corrected and up-to-update marketing particulars and information. This code will protect the interest of the home buyers.

Indemnity liability insurance

In addition to the protection of consumers, there is a provision for real estate agencies to have proper professional indemnity liability insurance so to ensure that the agencies and the staff are protected in case of litigation brought by a 3^rd party for breach of professional duty.

RICS is releasing this set of guidance note in an effort to improve the level of professionalism, and we are looking forward to facilitating discussion with the government, alongside other local professional bodies and associations, to the betterment of the industry.  For RICS members, this guidance note will become their professional practising guidelines on 1 July 2011.  However, it is the responsibility of the members to decide when it is inappropriate to follow the guidance, but the members could only do so for a good reason and they have to explain why they did not follow the guidance before the Court or RICS Disciplinary Panel in case of disputes.

To download the RICS guidance note, please visit
http://creativegp.com/RICS/RICS_Real_estate_agency_and_brokerage_standards_2011.pdf

To download event photos of today's press conference, please visit
http://creativegp.com/RICS/Event_photos_for_media.zip

About RICS & RICS Asia

RICS (Royal Institution of Chartered Surveyors) is the mark of property professionalism worldwide. It covers all aspects of property, construction and associated environmental issues. RICS has 150,000 members globally and represents, regulates and promotes the work of property professionals throughout 146 countries.

The RICS Asia supports a network of over 11,000 individual professionals across the Asia region with an objective to help develop the property and construction markets in these countries, by introducing professional standards, best practice and international experience. It promotes RICS and its members as the natural advisors on all property matters. It also ensures that services and career development opportunities are provided to members. The RICS Asia region covers national associations and local groups locating in Brunei, Malaysia, Singapore, Thailand, The People's Republic of China and the SAR Hong Kong. It also has members working across the region such as Bangladesh, Bhutan, Burma/Myanmar, Cambodia, Indonesia, Japan, Kiribati, Laos PDR, Macao, Mongolia, Nepal, North Korea, South Korea, Taiwan, The Maldives, The Philippines, Timor East and Vietnam. For more information, please visit: www.ricsasia.org.

Media enquiry, please contact:

RICS Asia Public Relations Representative
Ms Belinda Chan / Ms Ava Lau
Tel: +852-2372-0090
Fax: +852-2372-0490
Mobile: +852-9379-3045 / +852-9829-2913
Email: belinda@creativegp.com / ava@creativegp.com