x
By using this website, you agree to our use of cookies to enhance your experience.
STAY CONNECTED!
    
newsletter-button

RICS launches inquiry into estate agents' fees

17 April 2009
Written by Rosalind Renshaw

The RICS has launched a consultation into the transparency of estate agency fees.

Within its scope, it will be looking at whether agents should have to declare their commissions from HIP and EPC providers.

In a note about the consultation, it says that HIP and EPC firms regularly provide incentives for agents to use their products. The RICS suggests the issue is less about the money earned than limiting the consumer’s choice.

The consultation will be not just about RICS members but will cover the whole industry, and its scope extends to both residential and commercial fees paid to agents. It will also cover the lettings industry, in particular looking at renewals fees – ahead of the outcome of the Foxtons test case which is being heard later this month.

Evidence and opinions are being requested from both professionals and consumers.

The study is being undertaken by the RICS Transparency Working Group, which was set up last year to look at the subject of transparency in property transactions and services.

The consultation will cover:

Declaration of insurance remuneration and commissions.
Service charges in leasehold property.
Commission on letting renewals.
Commission on HIPs and EPCs.
Valuation fees.
Arrangement of fees for security loan valuations.

In addition the group intends to meet with key stakeholders and, where practical, hold public select committee style meetings, where it can question stakeholders and examine their evidence.

Peter Goodacre, RICS president and chairman of the working group, said: “The issue of transparency has been thrust into the limelight in a whole range of sectors. It is, therefore, timely that RICS is launching this initiative on transparency in relation to professional fees.

“Whilst RICS is responsible for the mechanics of the project, it is crucial that other organisations, professionals working in the property sector and individual consumers and consumer organisations inform the discussion and enable us to collect robust evidence about what is happening. I invite as many individuals and organisations to respond to the consultation as possible.”

The RICS consultation will be conducted as the Office of Fair Trading continues its own probe into the estate agency industry. The OFT is also known to be focusing on referral fees and mark-ups. Responses can be emailed to transparency@rics.org/transparency by July 10.

The RICS consultation paper is online at www.rics.org/transparency

Comments

  • icon

    Mr Brightmove, sounds like a pseudonym for Mr Peter Bolton King CEO of NF(L)OPP possibly! Trying desperately to generate more members for a useless organization, get real, make some real decisions and start acting for your members for once rather than your vast amounts of freebie trips to the USA at our expense or GALA dinners which at this particular time is a waste of members financial resources, along with property live for heavens sake! Just remember -£450,000 loss this year from a £1.5m profit last year what will 2009 reveal? Useless management, wrong decisions and a VERY BAD MANAGEMENT TEAM!

    WE NEED A CHANGE AND A CHANGE BEFORE WE GO THE SAME WAY AS LEMAN BROTHERS

    HW

    • 20 April 2009 21:49 PM
  • icon

    classic one today rics surveyor came in my office to do a morg val on one of my sales asking me if the price was fair? of course i said yes, he returned 1 hour later, one of my negs said all ok he said yes no probs. This always makes me chuckle as we know more than them in regard to values!

    • 20 April 2009 21:46 PM
  • icon

    On your bike RIC's how dare you decide what I do or charge in my business (liitle as it happens). I suppose you'll also be next reviewing lawyers fees, surveyors fee's. What possiblly makes you think you can stick your nose in other peoples business. Got more free time on your hands, instead of regulating your own membership comes to mind!

    • 20 April 2009 13:57 PM
  • icon

    oh dear more codswallop!

    • 19 April 2009 19:20 PM
  • icon

    The average work day of the RICS 'professional' - wake up in the morning, check diary, "Oh right - five valuations lined up" Next - contact all the estate agents to get their ideas on the values because I know that if I were simply dropped into one of those properties I wouldn't have a bloody clue how much it was worth so I'll get the agents to do my work for me - happy days. How much do they get paid for this?!!

    • 18 April 2009 09:27 AM
  • icon

    Surely this is a job for the NAEA - unless the NAEA were to carry out a consultation into the scope and level of Surveyor's fees.

    • 17 April 2009 22:18 PM
  • icon

    When the next plodding surveyor rings you up for a comparable, just say you're too busy. Also, when the next one comes in your office for keys for a homebuyers report or full survey, note how long they have them and subtract the travel time - the buyer may be interested.

    • 17 April 2009 22:02 PM
  • icon

    Seems to me that RICS must be quiet at the mo and have decided to fill their time having a pop at the estate agency world... Leave us alone won't you? Someone once said something about a pot calling a kettle black and not throwing stones in glass houses!!......

    • 17 April 2009 15:10 PM
  • icon

    I am all for transparency, to quote Jacqui Smith MP!…..however will the RICS be so forthcoming if they had to explain how they charge many thousands of pounds for a few hours work? Just because they have degrees they seem to think they are above the rest of us who, whilst most do not have degrees, have many many years of experience and professionalism to offer!

    • 17 April 2009 12:43 PM
  • icon

    Agency Insider - you just made me choke on my coffee!
    I'm not worried, we offer what we offer, take it or leave it. We already disclose our commissions, we don't take backhanders, we offer a good service. Sorry to disappoint all the folk who like to think every estate/letting agent is an undiscovered trickster! We are very boring on the whole.

    • 17 April 2009 12:08 PM
  • icon

    When I got wind of the RICS enquiry on fees and mark-ups I thought it would be interesting to ask the Law Society what directions they give to solicitors when they order HIPs EPCs Searches
    etc from providers who offer commissions. Emails went out 9/2, 11/2, 16/2, after my 26/2 reminder I got a 'holding reply', nothing since -suprise
    suprise.

    On March 2 I wrote to ask them roughly what they thought their members might charge to complete a PIQ for their clients. I also requested an opinion as to what they felt their clients' legal responsibilites might be if they completed one incorrectly themselves. No reply to date!

    • 17 April 2009 11:58 AM
  • icon

    I thought any extra's had to be declared to safe guard against what could be construed as 'secret commissions?'

    • 17 April 2009 11:08 AM
  • icon

    My first reaction is unless this applies to all agents (not just RICS members) they will be putting their own members at a disadvantage. Ie some agents (ie RICS members) will be obliged to disclose stuff, and non RICS members won't have to. Level playing field?

    • 17 April 2009 11:06 AM
  • icon

    Whatever next...perhaps Tesco should be forced to declare what they pay for a tin of baked beans?

    • 17 April 2009 10:49 AM
  • icon

    I will be glad when the word "Royal" drops off their name (EU requirement for the future and also the Post Office - ROYAL Mail), they might find they are normal after all and not related in anyway the the aristocracy with whom they think they are! Viva La revolution is what I say!

    • 17 April 2009 10:00 AM
  • icon

    So, has RICS all of a sudden become the Provisional Wing of the OFT?

    • 17 April 2009 08:47 AM
Breaking News
MovePal MovePal MovePal