RICS has published a new UK professional statement on conflicts of interest for the commercial property investment market which bans the controversial practice of dual agency, known colloquially as double dipping.
The standards will come into force on 01 January 2018 and states that dual agency must not be undertaken under any circumstances. ‘For the avoidance of doubt, RICS members working within non-RICS regulated firms are subject to the same criteria as regulated firms when undertaking dual agency in the UK under any circumstances,’ it adds.
The professional statement also covers multiple agency where an agent has competing contractual relationships simultaneously with several buyers, and the provision of incremental advice such as planning, building surveying and valuation related to a purchase or disposal that is incremental to an existing instruction to advise the buyer or seller.
The new standard was developed as the result of an extensive consultation that saw industry professionals and regulatory experts offer their views and the new requirements address concerns around the dual agency practice, providing both greater confidence for investors and increased clarity for RICS professionals.
RICS also has a global statement and following the launch of the UK specific statement, RICS intends to consult on the requirement for further market specific standards.
Already, some of the best-known commercial property firms, such as SEGRO, JLL, CBRE, and Land Securities have indicated their support for the new standards.
‘As a member of the RICS working group, I am pleased to endorse these new rules and guidance which are an important step forward for the property industry in inspiring trust amongst clients and the public in the way we do business,’ said Stephen Hubbard, chairman of CBRE UK
According to Chris Ireland, chief executive officer of JLL UK, the RICS professional statement will reassure clients and the public that we have effective procedures and controls in place and will stick to them.
RICS believes that it is uniquely placed to provide world-class standards for a global profession in land, property, construction and infrastructure. It said that regulating the profession in a way that holds it to this promise is vital to inspire confidence among clients and the public.
http://www.propertywire.com/news/uk/new-uk-standards-launched-professionals-land-property-construction/
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