Licensing Laws On Real Estate Brokers?

[baht&sold]

Government measures set to raise the bar

A real estate world congress in May and better enforcement of brokerage laws should help improve industry standards this year, according to property specialists. Deputy Finance Minister Chaiyos Sasomsap said the real estate market would grow at a faster pace if laws related to professional brokers and agents were enforced and real estate brokers had a code of ethics.

''After supporting the used home market with tax incentives, we are drafting a licensing law related to real estate brokers,'' he said.

A committee will also be asked to consider building standard regulations and a code of ethics for real estate brokers and agents, Mr Chaiyos said yesterday at the opening of a used home fair that runs until tomorrow at Central Lat Phrao.

Also yesterday, the International Real Estate Federation (FIABCI) announced that it would hold the FIABCI 57th World Congress in Bangkok from May 26-31.

FIABCI president Dato Alan Tong Kok Mau said the meeting would help improve industry quality and competition by sharing knowledge, information and opportunities.

The theme will be ''Caring for the Future through Real Estate'', and cover real estate recovery after natural disasters, terrorism protection for property and the impact of petroleum costs and energy prices on the market.

About 1,000 foreign delegates and 400 local participants are expected to attend. More than 250 foreign delegates have already registered.

Professor Manop Bongsadadt, the president of FIABCI-Thailand, said the event would give participants direct access to international real estate contacts and business opportunities.

It would also help to improve the working relationship between the public and private sectors, facilitate the exchange of information about a significant market, and touch on the economic, corporate, governmental and technological conditions affecting the industry.

''We are organising an international networking event. At each congress, lots of investors meet each other and there are a lot of transactions that occur after the meeting, which cannot be estimated,'' he said.

''This meeting will help raise the standard of Thai real estate business and push it onto the world map.''

The congress will include six professional forums: for real estate agents, developers and investors, property valuers, property financiers, property managers and property information providers.

There will also be six study tours: Suvarnabhumi International Airport; how to win contracts from the National Housing Authority; award-winning housing developments; home mart retail outlets; major shopping development at Siam Paragon; and the resort city of Pattaya.

FIABCI was founded in 1951 and has operated in Thailand since 2004. It has branches in 60 countries with 3,200 regular members, 20 academic members and 130 national associations, representing two million real estate professionals.

source: Bangkok Post Feb 18 2006

[solo siam]

Wouldn't tightening the real-estate laws relating to brokers and agencies mean a significant slow down in the pace of growth in the market?

Since when did adding regulations, enforcing (probably archaic or unintelligible) laws and adding a code of ethics lead to a spurt in growth in any market.

[baht&sold]

Wouldn't tightening the real-estate laws relating to brokers and agencies mean a significant slow down in the pace of growth in the market?

Since when did adding regulations, enforcing (probably archaic or unintelligible) laws and adding a code of ethics lead to a spurt in growth in any market.

Not a matter of IF they add regulations, rather when I suspect. Could see this coming for a long time now. Would be a good thing IF they adapted western style realtor/estate agent licensing standards- IF it was based on transparency and the end goal was hightened homebuyer confidence and raised standards of the brokerage industry (there are decent hardworking ethical brokers/agencies out there but mixed in with some cowboys as well).

However, simply creating layers and layers of extra beaucracy and therefor adding new various levels of Govt depts 'revenue' streams all for the sake of appearances of a regulated industry would be a waste all round.

Ultimately, the Farang brokers & realtors here particularily would do well to take the lead, form a professional group on their own, to set standards, raise the bar, share transparent info & listings, keep the baddies out and instill confidence in the offshore/onshore farang Thailand homebuyer- A Master Realtor member association, or MLS member (sounds perhaps unreal in present day "every broker for himself" TIT perhaps but it will happen, sooner than later).

''After supporting the used home market with tax incentives, we are drafting a licensing law related to real estate brokers,'' he said.

A committee will also be asked to consider building standard regulations and a code of ethics for real estate brokers and agents

Century 21 Real Estate are currently setting up a master franchise in Thailand and the main comment from the Foreign CEO regarding the brokerage industry here, was the need to raise realtors/estate agents/brokers standards & practises in Thailand and bring in licensing, similar to the States etc.

BTW, the International Real Estate Federation annual global congresss meets in Bangkok on May 26-31, so expect more "face" on this soon. http://www.fiabci-bangkok2006.com

[baht&sold]

At last count, there are at least 78 Farang associated realtor/estate agencies of various stripes n sizes in JUST Pattaya ALONE and yet not a peep in response... penny is dropping on new regulatory realtor/broker licensing laws in Thailand, any comments?

[terdsak_12]

Seems that every man and his dog is into real estate these days. Can't anyone think of anything original to make afew Baht here????

[Heng]

I was thinking of selling cars to foreigners and maybe exporting some Toyota trucks to the UK. What do you think?

[terdsak_12]

I was thinking of selling cars to foreigners and maybe exporting some Toyota trucks to the UK. What do you think?

It certainly pays the bills mate.

[Heng]

I'm there.

[Dragonman]

The reasoning behind the setting up of any Realtor Federation is financial and to protect members, not to benefit the general public Compulsory professional indemnity and the de-criminalisation of Thailand's defamation laws will help the general public to a greater extent.

[ThaiPauly]

I think its a great idea in THEORY , but even in the UK anyone can set themselves up as an "Estate Agent" as we call them there.

As far as I can see now in Thailand the same applies, anyone can become a Realtor or Business Broker, or am I wrong?

[Dragonman]

I think its a great idea in THEORY , but even in the UK anyone can set themselves up as an "Estate Agent" as we call them there.

As far as I can see now in Thailand the same applies, anyone can become a Realtor or Business Broker, or am I wrong?

Yes in UK anyone can set up as Estate Agent, but they are governed by the Estate Agents Act 1979. From experience this is not adequately policed however. The Office of Fair Trading in 2004 looked into the matter of compulsory licencing, but in a detailed report decided against. A big consideration was that in countries with statutory licencing, fees were considerably higher than in UK.

In Thailand even an Act as basic as Estate Agent Act does not currently exist.