Financial Times

Need for a professional real estate association
By Kirthi Hewamanna
The real estate industry makes an important contribution to the economy of a country and the welfare of its people. Housing is a key factor in measuring the standard of living of a society and is an indicator of the economic growth of a country.

It is said that the total value of buildings and housing stock of a developed economy is the greatest single source of invested capital and the revenues generated from this sector represents a large slice of the country's national income. A significant number of the working population of such countries is either directly or indirectly dependent on this business or its related activity.

In Sri Lanka, private sector participation in housing and property development has been in progress for the last 30 years. However, the industry has been unable to present an integrated service to the buyer or seller in a real estate transaction.

This illustrates the need for professional real estate marketing and selling organizations in Sri Lanka. There is also a need for an active real estate association with defined objectives, to meet urgent and fundamental challenges facing this industry.

Professionalism and skills
The current status of the industry here brings into focus an almost complete absence of organizational, institutional, and training ingredients essential for standards, professionalism and skills among practitioners of the business. T
his is in addition to poor marketing and lack of information available to the public. To most people, real estate business means merely introducing the buyer to the seller and hence the term "broker", has acquired a bad connotation among the public. Outside this popular notion, many buyers and sellers have little knowledge or access to the expertise that a professional practitioner of the trade can provide.

Professional real estate
There is a demand for professional real estate skills amongst buyers and sellers, property developers and others in the related fields. Such demands to a large extent are currently met in less than an ideal manner by a wide range of people.

They could be professionals in other fields who have had no training in all aspects of real estate marketing. Even people such as street vendors who are unable to provide a complete package of services in the best interest of the buying and selling public act as brokers.

I would like to propose the setting up of an organized body of real estate practitioners or realtors tilted the "Real Estate Association of Sri Lanka". Members of this Association shall include all genuine practitioners of the profession while associate membership status would be available to others in related professions such as, lawyers, architects, engineers, valuers, mortgage brokers, financiers, etc.
At the inception, those engaged in the business of marketing and selling property can apply for Association Membership.

They will be the founder members. Subsequent members will need to complete a study programme and pass a written examination conducted by a recognized Real Estate Training Institute.

The objectives of the Association are to provide highly professional services to the buying/selling public and to provide standards. In developed countries it is a legal requirement that all practitioners of the real estate business must be registered and there are legally binding responsibilities that go with the profession. The writer is an award winning realtor with experience in all aspects of real estate.

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