Real estate agent regulations to undergo amendments

January 18, 2024 9:52 am

[File Photo]

The Real Estate Agents (Fees, Forms, and Appeals) Regulations will soon undergo amendments.

This has been approved by the People’s Coalition Cabinet.

The Cabinet has also approved the set-up of a working group to monitor the effectiveness of the regulations to ensure their alignment with market dynamics and stakeholder needs.

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The principal regulations were gazetted on May 26, 2022, as Legal Notice No. 76 of 2022.

It regulated the commission rates charged by real estate agents for residential properties in Fiji and aimed to ensure fairness and transparency in the market while protecting the interests of property owners and potential buyers.

The regulations stipulated a cap of 2 percent for commission rates on residential properties valued at $500,000 or less.

However, the Cabinet states that various limitations have been identified since the 2 percent cap was announced in 2022.

These include the negative impact on the business operations of real estate agents, its hindrance to market dynamics, and reduced competitiveness in the sector.

It says that it also appears that some agents have manipulated the 2 percent commission rate, especially with the introduction of the disbursement policy.

The Cabinet has also approved the removal of the 2 percent cap on commissions for the sale of residential properties below $500,000.00.

This will enable the real estate market to operate at market-driven commission rates, fostering healthy competition and facilitating growth.