Ethics, protection and expertise – these are the values at the heart of a new international code which outlines how brokers and real estate agents conduct their business. Today, RICS officially launches the Real Estate Agency and Brokerage Standards (REABS) at Expo Real in Munich, Germany.

These new standards will be the first ever to provide an overarching international framework for all RICS real estate agents and property brokers worldwide. As real estate transactions in most parts of the world are initiated through brokers and estate agents, it is necessary that a global framework sets out best practice in the delivery of services.

From country to country, there is enormous variation in regulations and government licensing which outline how brokers and estate agents operate.  With continuing globalisation and many companies now conducting cross-border real estate transactions, RICS saw the need for a common set of global standards which apply to this area of the property profession.

Covering residential, rural and commercial transactions, including sales, acquisitions, leasing and letting, the REABS require that clients receive objective and transparent advice from RICS members who are brokers or agents. The standards also incorporate requirements for professional integrity, competence, excellent service and client protection. 

Chief Executive Officer, Johan Ericsson FRICS from Catella AB added: “We now have over 200 employees across Germany, France, Spain, Sweden, Denmark, Norway, Finland and the Baltic states and due to variations in national regulation, we applaud RICS’ initiative to compile shared international standards and values. The guidance underpins the Real Estate Agency Code and its core principles and also provides guidance that will help to meet relevant laws and ethical codes in all regions of the world.”

With growing international recognition, the REABS were recently accepted by the Estate Agency Authority of the Hong Kong Government and have already been endorsed by Europe’s leading firms. Lately, Colliers announced that its Asia Pacific division will adopt the standards; their Chinese version was launched back in May 2011 and their translation into Thai is also under way. 

A clear, precise and easily enforceable global set of rules, the Real Estate Agency and Brokerage Standards allow sufficient flexibility in following local legal provisions and market requirements. If any transaction ends in a dispute situation, proof of adherence to these standards can help to minimise their business risk.  

Anders Palmgren, Head of Business Development Corporate Finance, at Catella Property Group AB, said: “The global Real Estate Agency and Brokerage Standards reflect the internal processes and high ethical standards that Catella has followed since the very beginning, which is why it was natural for us to support the proposition.”

Thomas Brault MRICS, Real Estate Manager, Alstom Grid, France, said: “We are keen to support RICS’ Real Estate Agency and Brokerage Standards in France and we believe that this set of rules is important because they provide a clear set of global practice standards. Not only will these practice standards increase transparency, but wide support for the standards will contribute to an improved perception of the global brokerage and agency industry. Furthermore, if any transaction ends in a dispute situation, proof of adherence to these standards can help to minimise business risk.”

ENDS

RICS at Expo Real

To be held at the New Munich Trade Fair Centre from 4 to 6 October 2011, RICS Deutschland will host a stand in hall A1.010 and present its global network with a focus on property expertise, ethical standards, education, sustainability and valuation. This year, RICS will put a special emphasis on strengthening relationships with major employers and will present the newly launched Valuer Registration Scheme (VRS) and Real Estate Agency & Brokerage Standards. 

RICS Expo Real events  

• 05 October, 14.00 – 15.30          

RICS Sustainability Symposium "Finding the links: sustainable performance measurement, property valuation and asset management" (Conference room A12)

• 05 October, 16.30 – 18.30          

RICS Get-Together & Whisky Tasting inaugurated by RICS Vice-President Martin Brühl FRICS & RICS Deutschland Chairman Jörn Stobbe MRICS (RICS stand) 

• 06 October, 09.00 – 11.00          

APC Breakfast Special Expo Real Edition "Shape Your Future - career coaching & mentoring for students, trainees and prospects" (RICS stand) 

About RICS

RICS is the world’s leading qualification when it comes to professional standards in land, property and construction.

In a world where more and more people, governments, banks and commercial organisations demand greater certainty of professional standards and ethics, attaining RICS status is the recognised mark of property professionalism.

Over 100 000 property professionals working in the major established and emerging economies of the world have already recognised the importance of securing RICS status by becoming members.

RICS is an independent professional body originally established in the UK by Royal Charter. Since 1868, RICS has been committed to setting and upholding the highest standards of excellence and integrity – providing impartial, authoritative advice on key issues affecting businesses and society. RICS is a regulator of both its individual members and firms enabling it to maintain the highest standards and providing the basis for unparalleled client confidence in the sector.

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