RICS formally bans “double-dipping”

The Royal Institution of Chartered Surveyors has formally banned “double-dipping” for investment deals. The new guidelines outlawing dual agency will come into effect from 1 January 2018 and apply to all RICS regulated firms and members acting in the UK. Land Securities, SEGRO, JLL and CBRE have all committed to adopting the new requirements ahead of 2018 deadline. In a statement, the RICS said: “The practice of dual agency within the UK commercial property investment market is not generally accepted. Consequently dual agency must not be undertaken under any circumstances.” The new rules also cover multiple agency − where an agent has competing contractual relationships simultaneously with several buyers − and the provision of advice such as planning, building surveying, or valuation related to a purchase or disposal that is incremental to an existing instruction to advise the buyer/s or seller. The new standard was developed as the result of a consultation that saw industry professionals and regulatory experts offer their views and the new requirements provide both greater confidence for investors and increased clarity for RICS professionals. It follows on from RICS global guidelines and the IPF Protocol: Open Market Investment Agency (November 2014) for the commercial property investment market, which bans the controversial practice of dual agency. Both standards will be effective from 1 January 2018. RICS will now seek to consult on the requirement for further market-specific standards. CBRE UK chairman Stephen Hubbard said: “As a member of the RICS working group, I am pleased to endorse these new rules and guidance which are an important step forward for the property industry in inspiring trust amongst clients and the public in the way we do business.” JLL UK chief executive Chris Ireland said: “JLL will always work in the best interests of our clients and integrity within the investment market is fundamental to the protection of all clients. The RICS professional statement will reassure our clients and the public that we have effective procedures and controls in place and will stick to them.” To send feedback, e-mail Louisa.Clarence-Smith@egi.co.uk or tweet @LouisaClarence or @estatesgazette