24/05/2017
The controversial practice whereby the listing broker in a real estate transaction represents both the seller and the buyer – known as ‘double dipping’ or ‘dual agency’ – will be banned for Royal Institution of Chartered Surveyors (RICS) professionals and regulated firms from 1 January 2018 for the UK property investment market.
‘Conflicts of interest – UK commercial property market investment agency, 1st edition’, is a so-called ‘professional statement’ that is mandatory for all RICS’ members to observe.
Developed following extensive consultation to provide greater confidence for investors and increased clarity for RICS professionals, it focuses specifically on tightening up requirements for those working in land, property, construction and infrastructure.
It additionally covers
- ‘multiple agency’ – where an agent has competing contractual relationships simultaneously with several buyers
- the provision of incremental advice – e.g. planning, building surveying, valuation related to a purchase or disposal that is incremental to an existing instruction to advise the buyer/s or seller
The central message is repeated in ‘Update: New UK conflicts of interest requirements’, a youtube video in which Nigel Sellers, RICS’ associated director of commercial property, comments on the mandatory conflict of interest requirements.