Dozens of local real estate agents and companies recently met at the Pegasus to coordinate the formation of an association that would regulate the standards of acceptable practice for the industry.
This was in response to the recent calls by the Attorney General Anil Nandlall and President Irfaan Ali to ensure that local Guyanese benefit from the Local Content Act and improve real estate practices to conform with the AML legislation.
At a recent meeting with agents, AG Anil Nandlall stated, “We have a duty to regulate and protect buyers and sellers in the real estate industry and we will move quickly to ensure that this happens.”
He went on to add that input from all stakeholders was welcomed and would be considered whilst adding that the formation of an association would be greatly beneficial for all parties.
For many years the formation of an association was discussed but prior to the discovery of oil by ExxonMobil, the financial incentive to regulate was not present. However, as the market evolves, it is vital that the establishment of the association be treated with urgency to validate the trust and confidence of investors and ensure that the newcomers conform to the standard of practice in Guyana.
The large group – representative of a wide cross-section of the industry, agreed to reconvene today at the Pegasus to adopt an interim management committee; set preliminary benchmarks for membership; code of conduct; disciplinary and advisory subcommittees for legislation and education.
According to a statement emanating from the group, “We ask that all stakeholders in the real estate industry – finance, agents, companies, owners, lawyers, accountants, and homeowners join us as this historic step is undertaken to set the standards that will provide confidence in the industry”.
The association’s principal objectives are to ensure that education of the stakeholders, property owners, and buyers and compliance with the soon-to-be enacted Real Estate Bill are first and foremost on the agenda.
A major benefit emanating from the association will be an electronic listing system designed to elevate the protection of listing agents and the speed of locating available properties by agents nationwide. This will enable buyers’ and sellers’ agents to provide accurate and up-to-date information in a timely manner.
The Local Content Bill lays out 40 different services that oil and gas companies and their subcontractors must procure from Guyanese companies by the end of 2022. For instance, these companies must procure from Guyanese companies, 90 per cent of office space rental and accommodation services; 90 per cent janitorial services, laundry, and catering services; 95 per cent pest control services; 100 per cent local insurance services; 75 per cent local supply of food; and 90 per cent local accounting services.
These are just a few of the services highlighted in the first schedule of the Local Content Act. The Local Content Act mandates penalties for oil and gas companies and their sub-contractors who fail to meet the minimum targets of the legislation, as well as those who are in breach of the Act. These fines range from as low as $5 million to as high as $50 million.
