Having worked in the real estate sector for the past 30 years, I was pleased that the Federation of Estate Agents (FEA), with the support of interested bodies, will shortly be presenting a paper to the government on the regulation of the real estate sector.
This paper is being championed by Douglas Salt on behalf of the federation, in the interest of transparency, accountability, professional responsibility and the protection of the consumer.
In this evolving and complex industry, it is crucial to remain abreast of certain issues such as preliminary agreements, affordability, bank finance, planning permits, rental return investments, foreign investment, taxes, landlords and lessees and more.
Although it is not the estate agent’s responsibility to advise on these issues, they are inevitably the first port of contact for many potential clients, especially first-time buyers.
As a result, property agents must keep themselves abreast with developments in the real estate sector in an effort to offer assistance by providing information that will steer prospective buyers in the right direction.
People are currently purchasing properties with the help of property consultants of varying ability. Many a time, these people rely solely on their feedback, so if they are misinformed, they would eventually come to the realisation of their costly mistake and thereby the consultant would be risking tarnishing the reputation of the entire agency.
Hence, real estate agents should possess enough training to enable them to provide adequate advice on issues related to property sales. Without professional training, agents sometimes fail to fully understand concerns such as market values, fee structures, customer service, terms of agreements and industry trends, and cannot provide the assistance and counsel their clients expect.
Naturally, not all consultants are lacking these crucial skills. Some have been working in the property sector for many years and have acquired their knowledge through their vast experience. However, there is no evidence available for the client to be certain that they are dealing with a competent property consultant.
In this evolving and complex industry, it is crucial to remain abreast of certain issues
A training programme for property consultants could have an array of benefits for the property market in Malta. By providing this training, procedures are standardised, thereby providing an equal level of knowledge to all estate agents.
Moreover, an independent authority could be created, which not only grants the licenses but also monitors companies operating within the property sector.
This would be the point of reference for customers wishing to put a complaint forward or who have a grievance about the service they have received. This will subsequently increase the customers’ trust and confidence when using the service provided by estate agents, something that all property companies strive for.
Furthermore, international clients looking to purchase luxury homes in Malta would feel more comfortable using the services of a licensed agent and this would eventually lead to an increase in foreign investment.
The state of the property sector, one of the pillars of the Maltese industry, has remained unchanged for the past 30+ years of my involvement within it. However, efforts towards making these essential changes are now being made and I’m really glad to see and be part of these changes.
Ultimately, all grey areas in the industry must be made transparent, for the benefit of the customer and the industry players alike. By providing adequate training, abuse by individuals taking advantage of the lack of accountability could be prevented. Furthermore, the level of service will be drastically improved; a necessitated step towards the advancement of this evolving industry.
Chris Grech is chairman and CEO of Dhalia Real Estate.