UPM accepts motion to regulate real estate agents

(CNS): The Cayman Islands Government accepted a private member’s motion last week to regulate and limit the number of non-Caymanians who can be licensed as real estate agents. The motion was brought by Bernie Bush and supported by Chris Saunders. Putting his case for the motion to his colleagues, Bush said there were some significant concerns about the sector, and allegations of inappropriate practices were common.

He said it was time for Caymanians to benefit from the sector, given the huge amount of property that has been sold in recent years to overseas owners.

Bush said the only Caymanians he knew who were working in the sector have struggled because it is a closed network where they only let certain people in. He said, “I wanted to put a figure of zero” to the number of non-Caymanians but was advised to take small steps. However, he said that foreign workers are not helping to train local people, as required under the law.

Premier Juliana O’Connor-Connolly accepted the motion, saying that the government was inclined to agree with it. Although the sector is regulated under DCI and CIREBA regarding money laundering issues, it is not regulated when it comes to consumer protection. Regulation would lead to more transparency and fairness across a sector that is very important to Cayman’s economy, she said.

“Concerns persist regarding the transparency, the fairness and affordability within the industry,” she said, noting that licensing is voluntary through the CIREBA, which regulates entry into the profession. However, there are no specific mandated regulations, competency requirements or ethical standards to practice. CIREBA offers listings, but it doesn’t require anything of the realtors.

The premier pointed out that in many other countries, there are mandatory standards and regulations governing the conduct of those involved in the business. Although it is also less regulated in the UK, there are now efforts in Britain to reform the sector to raise standards and protect consumers from unscrupulous practices.

She said there were a number of benefits to regulating the sector. Having a body to deal with complaints and enforce ethical practices would safeguard owners and buyers and stop corrupt and unfair practices. It would also enhance public trust.

Nevertheless, the premier noted the potential for over-regulation and the cost of compliance. It might be challenging to regulate, but the goal was to strike the right balance, she said, adding that it would be essential to consult with stakeholders on both sides of the discussion.

O’Connor-Connolly set out the list of proposals that the government believes the regulation should focus on, such as setting out the qualifications required, a code of conduct, ethical standards, a complaints procedure, professional development, accountability and liability insurance, to help “build a stronger, more ethical real estate market”.

She said she has long held the belief that only Caymanians should be real estate agents and that the Constitution supports that. The proposal should be given consideration, and the companies should be given time to train more local people to do real estate work, which she implied had been a very lucrative profession historically for those who have come from elsewhere.

Labour Minister Dwayne Seymour said that ensuring Caymanians were involved in the business was essential for maintaining economic stability. He said the immigration law provides a framework to limit the employment of non-Caymanians within the sector, and the government should amend the law as necessary to roll out the protections the motion is seeking.

“Caymanians can do this, but at a point, they made it feel like if you were a Caymanian, you could not do this,” he said. “As if you can’t sell your own land.”

The last motion of this parliament passed with the full support of the members in the chamber at the time.