The Royal Institution of Chartered Surveyors has published a new global standard aimed at improving the property industry's reputation for transparency.
The industry body, which has 134,000 members worldwide and regulates surveyors and valuers, has published rules its members have to follow.
The new standard, "Property Agency and Management Principles" covers residential and commercial auctioneering, property agency and management, and mixed-use real estate. It is a mandatory for RICS members and RICS-regulated firms and supports a new framework developed for property agencies and management.
Much of it focuses on transparency when businesses are supplying clients with services. The standard, which becomes effective from 1 January, can be read in full here.
RICS says it wants to protect consumers and enhance the reputation of the industry and the public's confidence in surveyors across the world.
RICS writes that members must "communicate to clients how their fees, and any other charges, will be calculated openly and transparently in writing (including any local taxes), the point at which they should be paid and to whom, and any action that will be taken for late payment of fees and/or interest that may be charged".
It adds: "In the case of dual fees (if a fee is also required to another agent), this should be communicated in writing to the client. If there are any changes in fees this should be communicated to the client before starting the work."
RICS says the work is based on its five key rules of conduct for its members.
These are:
- Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.
- Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
- Members and firms must provide good-quality and diligent service.
- Members and firms must treat others with respect and encourage diversity and inclusion.
- Members and firms must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession.
The standard was developed by group of professionals chaired by Kelly Smith, the chief operating officer, letting and management at Allsop. The document's authorship was led by RICS senior specialist for property, Mairéad Carroll. RICS said it is organising webinars for members over the coming months.
Carroll said in a statement: "This important standard sets clear expectations for RICS professionals when providing property agency and management services. These mandatory standards apply to RICS members globally and will assist and enhance customer service and confidence in the many crucial services that surveyors provide worldwide."
In May, RICS said it had appointed the members of its permanent Standards and Regulation Board. It had had to appoint an interim SRB after the previous board resigned en masse in June 2023, throwing into doubt the implementation of the major Lord Bichard review into the industry body. In a joint statement at the time the Board said they were resigning as they had been treated as "the enemy rather than as the regulator within RICS".
Those unexpected departures came as the Institution tries to move on from challenging times that have seen major investigations into its financial conduct and its relevance to the property industry, culminating in the review.
In 2017 RICS formally confirmed it was tightening up requirements for professionals and regulated firms working in land, property, construction and infrastructure, with the publication of a new UK professional statement on conflicts of interest.
That UK-specific professional statement banned the controversial practice of dual agency, known colloquially as ‘double-dipping’, or representing both sides of the deal.