The researches that have conducted by the order of the Ministry of Roads & Urban Development from a faculty member of Iran Urban Development and Architecture Studies Center about “key role of the real estate agencies and property mediation companies in the housing economy booming”, shows that the real estate field of 4 countries in the world has faced with the maximum capital and consumer demand during the past two decades and their reputation, in terms of amount of construction activities, has been imitated by other countries, a large footprint of real estate agencies is seen in the growth path of the housing market.
Turkey, United Arabic Emirates, America and England are countries that the major economic growth in some of them owes to the capital demand’s required constructions and in other some countries is from the households growing need for shelter (consumer demand). In these countries, the real estate agencies and mediation companies providing property services with some molting in the last half century were succeeded to pass over the brokerage traditional generation and develop their professional responsibility in three separate categories.
In each of these countries, the work model of the property agents and housing brokers is different from the other but the experiences series of these mediation institutions has made an extract available for the Department of Housing that to be used to amend the brokerage laws and regulations related to the housing market and organize the intermediary link of the market.
In Turkey, the population growth and increasing the housing applicant families as well as cities exhaustion and need to rebuild more than 5 million residential units have made the property market situation similar to Iran’s housing market and from this perspective, the strengths of housing mediation system in Turkey can be taken as a model.
The property brokers have employed one of the most sophisticated marketing models due to the diversity of buyers of residential and commercial towers’ nationalities in United Arabic Emirates, too, so that the housing economy situation of Dubai, Abu Dhabi and Sharjah well shows the crucial role of real estate agencies in the economic boom. America has also accommodated one of the largest property transfer markets as well as bank loans for purchasing house that the real estate agencies have an effective role in managing and forwarding the market. England has been also underlain for this research due to the long history in compiling the regulations of civil rights and taking the successive trial and error from lawyers that has led to apply stable legal standards for housing transactions and set registered contracts.
The details of conducted study by Ms. Hamideh Amakchi that is reflected in Eqtesad-e-maskan special periodical, shows that the active real estate agencies in these four countries know themselves responsible and actor in “preserving the maximum rights of the parties”, “improving construction” as well as “increasing generating investments in the property market” and serve in 6 lines in order to realize them.
Although in some of these countries including America, entering people into the field of mediation and brokerage doesn’t yet require to primary specialty and academic college degree and having at least diploma is sufficient, but in all four reviewed countries, a license for brokers’ professional activity is issued after passing the legal, registration, land regulations and financial education courses.
In United Arabic Emirates, housing and building sector comprises 22.5% of GDP (gross domestic production) that is a significant share. In this country, the property agents in addition to provide buying and selling and renting house services, they also participate in construction and this has made the brokers’ deep presence in the market and consequently gaining more skill in their marketing. Mass tower buildings during recent one and a half decades in Emirates in the conditions that the foreigners have comprised at least 80% of this country’s population, represents the role of property mediation companies in connecting buildings to merchants and foreign investors that reside in this country. The real estate agencies in Emirates were focused their own marketing skill on explaining the attractiveness of this market before the housing bubble bursting crisis, but since 2009, in addition to being leading role, they have also been effective in persuading buyers to Emirates’ property market security.
The real estate supervisory agency in Emirates as an institution overhead agencies, is responsible for criteria setting tasks, support of transaction parties, supervise the brokers’ work and defend of dealers’ rights about possible extortion on behalf of the government. The key tasks of property brokers are resumed in verifying the seller’s identity, legal safety of property document and providing financial services from lender banks channel. The brokers’ commission has not a specific formula and is calculated adaptively.
In Turkey, the tasks of property agents who work mainly as a serial in big cities, include basic marketing, quality and services control of transaction apartment, registration and legal services and in the final stage, settling legal rights of the buyer. In this country, the property brokers take commission of both buyer and seller and their commission rate is determined adaptively.
But in England and America, the real estate marketing is done separately for the buyer and seller, this means that a broker is not allowed to provide a consulting services to buyer and seller simultaneously. This type of property mediation prevents of appearing “conflict of interest” in the housing market as well as being affected and being damaged of interests of one of the transaction parties for other party.
In these two countries, a property agency or property agent should undertake the buyer representation and the other agency or consultant should undertake the seller representation individually. In England, the total of marketing commission is equivalent to 3% of the total of contract value and the seller should pay it all but in America, this figure that includes 5 to 7 percent of the total of contract value, will be divided between the transaction parties. However, in both these countries, the property agents’ commission will vary depending on recessions and booms and is flexible. The real estate agencies in addition to property services, also support in taking the best bank loans with the easiest payment terms and do their loan borrowing operations on behalf of them in these countries, too.
In America, all property brokers are obliged to adhere the professional ethic charter and they are controlled by a superior institution. The real estate agents sign an obligation to pay compensation for being ignored of dealers’ rights in England, too. In England, amount of the brokers marketing’s transparency as well as competition among them in pricing apartments for the benefit of the buyer is by far more than other countries. The cause of this subject goes back to brokers’ group activity in an internet information system. In this system, all properties for sale are classified in terms of effective demand structure so that the housing seekers can easier and faster get to their desired file.