Regulator proposes Sh1m fine for bogus real estate agents

Real estate agents will face up to Sh1 million in penalties for operating without valid registration if proposals by the regulator set to promote professionalism in the sector are approved.

In a new Bill, the Estate Agents Registration Board (EARB) sets tougher penalties for quacks, who currently part with a paltry Sh20,000 for operating without a licence.

A survey by the regulator established that there are more than 40,000 unregistered real estate agents in Kenya, which has compromised professionalism in the industry.

“The amendments are targeted at streamlining the industry by ensuring that real estate products are sold by professionals,” Nelly Mbugua, EARB chairperson said yesterday at an estate agents workshop.

The reviews contained in the Estate agents (Amendment) Bill seek to restore public confidence in an industry teeming with fraudsters. It comes amid revelations that out of the thousands of firms currently in operation, the board has only licensed 700,000 real-estate agents since it was created in 1989.

Ms Mbugua said the reviews of the Act are directed towards eliminating exploitation of the public by the unscrupulous agents as has been the norm. Under the Bill, an agent will not receive payment for service rendered if they are not registered and licensed by the board to operate.

The Bill currently at the office of the Attorney-General further states that a person seeking registration as an estate agent must at least be a holder a Kenya Certificate of Secondary Education or its equivalent.

This is alongside a post-secondary certificate in real estate agency or a certificate in a related field approved by the board.

Currently, applicants merely needed to satisfy the board that they are Kenyan citizens and of good character.

Land Cabinet Secretary Farida Karoney said the reviews to the Estate Agents Act would empower the board to deliver its functions and to live up to society’s expectation.