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Real estate agents plan to raise industry's standards

Bermuda's real estate agents are to clean up their image with sweeping changes to the way they are governed.

Agents and brokers want to raise standards in the industry and weed out rogue dealers who they say are giving the profession a bad image.

To do so, the real estate division of the Chamber of Commerce has drawn up the Proposed Real Estate (Brokers and Agents) Licensing Bill 1999.

The plan has wide-ranging changes to make the industry self-governing with rules that are mandatory -- administered by a board of brokers.

It would replace the 1976 Real Estate Agent's Licensing Act which many feel is outdated.

There are over 250 licensed brokers and agents on the Island -- and backers of the bill believe the new act, if adopted, will sort the wheat from the chaff.

"The whole thing is about raising standards,'' said one agent. "There are alot of people who have licences, there are agents who work very hard and there are agents that don't.

"We want to clean up our image for those who do work hard and try their best to run upstanding businesses.

"We are in a very small market and there is a limited supply of real estate, but there are people that don't really know the business but have the contacts.

"Do you want to encourage that kind of business or encourage people who really know what they are doing?'' High on the list of changes is training for would-be agents and existing brokers.

At present potential sales people have to pass a test to become licensed to sell, and two years later they could take another exam to reach the broker or agent stage.

"You could be a sales person with a licence for two years and never sell a house, and then pass the exam and become an agent with no experience,'' the agent said.

The Chamber of Commerce believes the US model, where there is an educational requirement for would-be agents and an emphasis on continuing training could be the way forward.

It would ensure professionals are up to date with the latest industry developments and would encourage part-time agents to either become more committed or to give up their licences.

In many cases, she said, there are people working in real estate who don't have a clear idea of what their job actually entails and lack professionalism.

"It has become very clear that the bar needs to be raised. This is an effort to do so. At present agents in the Chamber of Commerce's real estate division have a handbook we all agree to abide by. They are guidelines but not law.

They are not enforceable.'' Essential to the legislation -- which it is hoped will be backed by the Government -- will be a governing body of professionals and a general membership, who will vote on policy.

Buddy Rego, president of Rego Realtors, supports the moves, which he said were long overdue.

He said there was a need for more professionalism and more cooperation between agents.

The plan has broad support amongst the industry but in an effort to get a full consensus, a meeting has been arranged by the Chamber of Commerce. It will take place at the Chamber Board Room on Front Street at 8 p.m. on February 22.