WITH advancements in technology outpacing legislation that provides guardrails for the real estate sector, industry players are hoping the laws of the land will catch up soon, even as they focus on informing the public about potential pitfalls.

In at least one case, a legitimate technology-based entity has waded into a grey area with licensing requirements, but the bigger concern is those with nefarious intent.

“We really just need to make a push to have some of our laws catch up with some of these things that are happening. Because certainly, when a lot of these laws were drafted, TikTok wasn’t around yet; how we use social media wasn’t the same,” said Realtors’ Association of Jamaica (RAJ) President Gabrielle Gilpin-Hudson.

She pointed to — as also reported by the Jamaica Observer on December 24 last year — the increasing prevalence of social media being used to advertise fake property, ask for cash advances to view property, and skim personal information. Gilpin-Hudson, who is also an attorney, is concerned that scammers may sully RAJ members’ reputation and bilk unsuspecting members of the public. It’s among the issues she wants to shine a spotlight on during her time leading the association of about 1,200 active members.

“How can we look at making sure that our legislation is keeping pace with the type of scamming going on, to make sure that we can hold people responsible when they do these things? That’s something that I would love to see, and that needs to be addressed through the public sector and the private sector working together to close these gaps in the law,” she told the Sunday Observer.

She also raised the issue of well-intentioned, honest entrepreneurs who may see a business opportunity in using tech to make aspects of the real estate business more efficient. They also have to tread cautiously.

“I am all for advancements in technology,” said Gilpin-Hudson. “But the Real Estate Dealers and Developers Act (REDDA) is very clear as to what constitutes conducting real estate business. If you are going to be advertising properties for sale to solicit offers on behalf of another person — and all of the things that are outlined in the section of the Act — once you are falling within the definition of conducting real estate business, you must have a licence or you’re acting illegally.”

It’s a fine line to walk and those unaware of the law may unwittingly break it.

“A newspaper can have advertisements that are placed by realtors or by owners. But if you are not the owner of the property, or you’re not a licensed real estate professional, you are not allowed to advertise real estate for other people,” the RAJ president explained. “You can’t take developers’ listings and advertise it for them, and solicit offers for sale and rental for them and conduct real estate business if you are not licensed.”

Like Gilpin-Hudson, Dr Tina Beale, who heads the Real Estate Board’s training and licensing arm — Real Estate Training Institute (RETI) — pointed to the need for increased public awareness. She believes it will be particularly helpful in reducing the harm done by fraudsters who are capitalising on social media platforms.

“Minimising that information asymmetry, in my view, is one way in which we can mitigate against it while we work towards amending the legislation to close the gap,” she said.

“There are certain things and information that can be put out and shared. For example, anybody who is a realtor should never ask someone to pay money in order to view a property. That is against what is in the code of ethics [used locally], and it’s also against what realtors would subscribe to in the [internationally recognised] National Association of Realtors code of ethics. Information like that, letting the public be aware of certain things that they’re to look out for through newspaper articles, social media posts, just in a bid to ensure that the public have more information at their fingertips [would be useful],” Beale added.

According to Gilpin-Hudson, RAJ members have stepped up their efforts to get the word out, relying heavily on social media posts, and they will keep up the pressure. Part of that is constantly hammering home the point that there is a certain level of safety that comes with engaging the services of real-life, licensed real estate professionals.

“You should have a conversation with the person to actually verify that they are who they say they are. Be very careful when you’re looking to transact business, because these people are getting very clever in the
TikTok scamming,” she said.