RAJ calls for challenges in real estate sector to be addressed
The Realtors Association of Jamaica (RAJ) has continued to advocate for a number of issues within the local real estate industry to be remedied, especially as its members seek to operate on a level playing field.
In outlining issues which cut across overdue policy reforms and other compliance matters, the challenges, if adequately addressed, the association believes will auger well for transparency, efficiency, and growth within the real estate sector. The once-booming real estate sector, which enjoyed consecutive periods of growth during the COVID-19 pandemic, has in the last few years witnessed back-to-back downturns as output slowed, due mainly to unstable market conditions.
Speaking with the Jamaica Observer recently, RAJ president, Newton Johnson, said the challenges, which largely calls for stricter enforcement, could push some “rogue” operators in the space into conformity.
With issues surrounding approval processes and long wait times for transaction processing remaining among the strongest pain points, he called on bodies such as the municipal authorities to step up their monitoring and oversight so as to have improved service delivery in the respective areas.
Pointing to delays with a number of other state agencies, including Tax Administration Jamaica (TAJ), National Land Agency (NLA), National Housing Trust (NHT), and some mortgage providers, Johnson stressed the need for legal engineering to modernise a number of the current legislative frameworks, particularly those which concern the Transfer Tax and Stamp Duty Acts as well as Residential Tenancies Act.
“These are issues that we have been facing for a number of years, a lot of which has to do with policy, and we are of the opinion that while much of them may not be a quick fix, they can all be addressed. To this end we have been meeting successively with the relevant stakeholders to see how best we can come up with solutions,” Johnson told the
Business Observer.
“We continue to advocate in having the issues fixed, as unlike most workers, our pay is based on commission, so the longer it takes to have an approval sorted and for a property to be sold that will negatively affect our members. What we have found is that too much of the processes in this sector are taking way too long, as gone are the days when a transaction could be processed in about 90 days maximum. Instead, what we are looking at now is anywhere between 120-180 days, up to even a year, which is untenable,” he added.
In seeking to have a permanent seat on the Real Estate Board, the body likewise believes it can, through further collaboration with this stakeholder grouping, enhance policies that will lead to an overall betterment of the sector.
Further bemoaning what he described as a type of disproportionality, Johnson said developers were also not being held to the same level of scrutiny as realtors, who, by nature of their profession, have to comply with all the stipulated regulations. “We understand and appreciate the need for full regulatory compliance, but what we want is a level playing field where other players in the sector will be held to the same level of account. We all operate under the [Real Estate (Dealers and Developers) Act], which means the same rules should apply for all parties concerned.
“For years we have been advocating to the policymakers, and to date nothing much has been done, and we want to see a change where that is concerned. As an association, the RAJ adheres to international best practices, as all our dealings have to be above board and anything otherwise will be dealt with according to our by-laws. Through our organisation we have already established that it cannot be a free-for-all, and so we want to ensure that there is equity across the sector,” the president noted.
The RAJ, which is a body made up of some 1,600 members, represents the interest of local real estate professionals and affiliates dedicated to the industry’s growth. The entity, as a support network, offers members educational resources, legislative advocacy, and professional standards enforcement.
Despite the challenges, the RAJ president, in expressing optimism for the future growth of the sector, said that much of its progress continues to rest on how much further the interest rate will be brought down.
“There still remains a vibrant market in certain spectrums, whether for commercial or residential purposes, but the real issue affecting higher levels of output right now concerns the interest rate. It has started to come down, but if we can adjust it further, I think we will see even more activity in the market, as most people are waiting to buy property but are currently in a wait-and-see mode. The slowing down of the market has impacted us to some extent, but amid the challenges, the industry, I think, remains very vibrant, as there is a lot that is going on now and we are very optimistic in terms of where the market is headed.
“If we can, however, move forward in solving the outlined issues, the industry, I think, will be in a much better place. Things will also become even much better if the policymakers can get more people to toe the line where a number of these issues are concerned,” Johnson stated.