Help get the Overseas Property Industry regulated!

Rivermead Global Property are committed to improving the industry in which we work and are looking at taking the information you provide and your suggestions as to how the industry can be improved to the government and a national newspaper that will hopefully act as a catalyst to improving the Overseas Property Industry.

The industries reputation is suffering

For many years now, the overseas property industry has been experiencing an ever increasing bad reputation. With ‘horror stories’ in the news on an almost daily basis, we are constantly being made aware of people losing their investments, properties never being built and both developers and agents giving little or no after sales service once money has been paid.

As there is no legal governing body for the overseas property industry, there is very little stopping anybody from setting up a website and a phone number and overnight becoming an ‘overseas property expert, selling property worldwide’. This maintains distrust in the industry.

Progress is being made

The AIPP (Association of International Property Professionals) was created to allow professional conduct and alleviate mistrust in the International Property market.  The AIPP works because they have no vested interest in either buying or selling of property and want to ensure that their members provide a high standard of professionalism to the process.  All the members of the AIPP have to follow a professional code of conduct in a bid to improve the standards of the industry. The code of conduct is focused around providing the highest levels of customer service and support and providing detailed and honest information throughout the whole process of buying a property. This in turn means that if a consumer does have recourse as part of the process the AIPP has the authority to enforce the code of conduct.  This can be by means of fine or even expulsion. The AIPP are making steps to really ‘clean up’ the overseas property industry.

More needs to be done

However, members of the AIPP join voluntarily. There is actually nothing in place that means companies NEED to follow any type of procedures. So despite the AIPP providing the service, without the legal enforcement, the industry is going to remain open to the ‘con-men and sharks’ that are out only for themselves and not the consumers.

Have your say!

Show your support for improving this industry by commenting on this blog. Tell us your stories good or bad, ways you can think the industry can improve and whether you agree or not that the Overseas Property Industry needs regulating. We will take this information to the government and a national newspaper along with your stories, in a bid to increase the publicity around the industry with the end goal being higher standards for all involved.

About the author: Thomas Yates

After finishing his Business Management degree Tom was looking to join a progressive company where he had the opportunity to have his own ideas listened to and implemented. It was a case of being in the right place at the right time as Rivermead Global were looking at taking somebody on and in 2009 Tom joined the company. If you are looking at buying a property in Egypt or Turkey you have come to the right people. Read our Ultimate Guide To Buying Property In Hurghada

  • Lisa Scott

    AIPP are just a logo. They are a waste of space judging by previous experience and are just a ‘boys club’ where even the dodgy ones are members. AIPP have no teeth at all and seeing their logo on any web page does not give me any confidence at all.

  • Neil Hollingsworth

    Hi Lisa, this is exactly why we are trying to do something about the industry. The AIPP do not have any government backing or any powers against the members other than their own code of conduct, and they do their best with the resources they have. However, saying that at least there is something there to build on and if the AIPP can get more powers to do something stronger against those that break the rules it will make them more effective. Thank you for your comment and as I say this is exactly why we want to get the government/authorities to listen.

  • Alan Cockayne

    The Association of International Property Professionals (AIPP)is a body designed to collect subscriptions from a collective of developers and agencies supposedly to assist investors. However, it’s legal advisors generally look after the interests of its member rather than client cases.

    It is a members club….. It has been of little influence in recent Egypt disputes. It’s Egyptian counterpart RTDA, the Residential Tourism Development Authority designed to help Egypt secure more satisfied customers, never got off the ground….

    And how can it?
    It is headed by Egyptians, staffed by the local officials, designed as a consumer agency but actually a propoganda mechanism to praise the government. Similarly it will cover up for poor workmanship and late delivery of unmortgageable properties in an unregulated society of crooks and criminals intent on extorting monies from unsuspecting visitors under the name of Residential Tourism.

    It is high time the industry takes note of public opinion.
    It is essential the Government and its Authorities realise that global sales comes from a positive global media.

    There are two million units, both part-built and off-plan awaiting owners in Egypt…. There are similar amounts of units being built in other Arab States looking for buyers. There a dozens of European countries with hundreds of projects each looking for the same investors.

    Let us all be realistic. There are few interested customers who will actually fill those projects and without them they go BUST. Yes BUST and confiscated by the same government to churn the same rubbish back to the public a few years down the line.

    This forum is also read by those officials and they know we print the truth. But they will not react. It’s not in their nature to change the habits of a lifetime, so we have to make decisions for them…

    We can either stay away from their projects or create our own Consumer Protection “watchdog” and Neil and I have discussed this possibility. We will of course pursue it if these forums creats a demand.

    By Alan Cockayne.

  • wayne ghosh

    The property industry definitely needs regulation. One thing is prevelent is agents springing up over night and setting up websites giving the impression that they are the master vendor or are representing a property company overseas but in the uk. Ive seen numerous sites for instance selling coral sea pearl or aldora residence. Images and plans are very easy to get hold of. Then all thats needed is a domain name and bobs your uncle. Bank accounts then can be set up, false business addresses etc. I am unsure as to what the solution is but it has to be controlled by local government. So instead of paying for memberships , an agent would have to satisfy various conditions, be inspected and have a legitamate business address. Perhaps a black list of agents or just like companies house, a unique reference number that can be checked with trading standards.. Perhaps more obligation of agents having liability . This might tighten up due dilligence. The shortfalls of course are measures that other countries have. Im sure its doable!!