RICS: no double dipping from 2018

The Royal Institute of Charted Surveyors has unveiled its plans for stamping out double-dipping and other conflicts of interest among agents in the UK. A professional statement will be published in April which will require all agents to refrain from the practice known as dual agency from 1 January 2018. It will also require clients to be notified when agents are representing two separate parties bidding for a scheme, and for incremental increases in services provided. RICS professional statements are essentially mandatory contents, or RICS law. Those not complying with the statement can be penalised, fined or barred from the RICS. Nigel Sellars, associate director, professional groups at the RICS, said that while double dipping was not illegal, there were still questions about the ethical robustness of taking fees from both sides of a transaction, and the RICS wanted to address any concerns, perceived or real, about the sector. “While it is not illegal, there is a growing unease among industry end users and practitioners,” he said. “There are no more grey areas. It’s a blanket ban.” The RICS launched an investigation and consultation into double dipping, or dual agency, in summer 2015. The consultation also covered multiple introductions, in which agents work for more than one bidder on a site, and incremental increases. For both, agents must inform clients from the start what they are doing in term of incremental agency. “The RICS are not trying to step into the market, which inhibits practice, but to recognise that markets are evolving constantly and we need to provide confidence to end users,” said Sellars. The UK will be the first country to introduce the standards. The RICS is also publishing the global professional statement, which will address global issues regardless of specialism or geography. The key areas of the global document are defining conflicts of interest, informed consent, confidentiality, and a framework for how member firms can address conflicts of interest. For the moment, this is a more advisory document. “We have not produced a prescriptive ban on dual agency outside of the UK as yet,” said Matthew McDermott, program director, professional standards. “The purpose would be that following on from the UK launch, in markets where RICS has a strong presence, we will consult with stakeholders and statutory bodies to understand how this may apply in certain markets.” The UK statement will apply to commercial property, meaning anything that is treated as an investment for capital or yield. This means residential will be included, but not the owner-occupier market. • To send feedback, e-mail alex.peace@estatesgazette.com or tweet @egalexpeace or @estatesgazette