Bill Powers, one of a handful of delegates for the Arizona division of the National Association of Realtors (NAR) told a group of about 40 Guanacaste real estate agents it was necessary to work towards a mechanism for licensing members, as well as a code of ethics.

“I want to see licensing in every country in which we operate,” Mr Powers said in an address to a general assembly of the Global Association of Real Estate (CRGAR).

“We want a level playing field,” he said, “and the important thing is to force it up from the Association rather than waiting until it is forced down upon you from above.”

Mr Powers said Costa Rica had a reputation for allowing anyone to sell real estate.

“If you have a member who is violating your code of ethics you are hurting the reputation of all real estate agents,” he said. “But with this association you are improving the standards of real estate agents, and you are doing it from inside the association and not waiting for the government to do it for you.”

The visit by the delegation comes as the CRGAR moves towards a bi-lateral agreement that would affiliate it with the National Association of Realtors --- the biggest of its kind in the World --- through a relationship with the Arizona Division.

The agreement between the two associations will be signed in San Francisco next month.
“Licensing is not just an issue with Costa Rica, we have the same issue with Mexico as well,” said Mr Powers, whose association has eight other affiliate countries, including Australia, South Africa, Canada, Singapore and Thailand.

“We are especially concerned about organizations that act as their own escrow companies,” he said. “That’s when the line between company funds and a client’s funds can get blurred.”

© Ralph Nicholson
Ethics Code: Bill Powers, left, of the National Association of Realtors (NAR), and Alice Martin (below), NAR's Executive VP, spoke about the need for licensing to CRGAR members. Nicolas Viale, right, CRGAR's President, supports a Realtors' Code of Ethics.

In fact, under the bi-lateral agreement, the CRGAR must have a code of ethics in place. The Association’s President, Nicholas Viale, confirmed the code of ethics is already in place.

“It is very close to the NAR's code of ethics, but adapted to our local laws and regulations of course.

“It works in accordance with Costa Rican laws, protects and promotes private real estate ownership, and raises the standards of the local real estate industry for our members and customer's benefits,” he said.

Mr Viale said the code of ethics would be enforced by an ethics and arbitration committee within the association.

“Lots of actual CRGAR members have expressed their interest in participating actively in that committee and they will be more than welcome to join and participate in the specific training sessions we will have in the future,” he said.

Alice Martin, Executive Vice President of the Arizona Association of Realtors, welcomed the idea of enforcement from within the Association.

“You have a very good opportunity to put together an ethics enforcement procedure,” she said, “and you may actually put together a higher standard of membership than would come with licensing.

“The best way, in my opinion, for REALTORS® to enforce high professionalism is peer authority. A service association or hearing panel listens to a complaint and makes a decision.

“They do such a better job than a regulatory panel,” she said.

However, Mr Viale signaled that government licensing of real estate agents in Costa Rica might be some way off.

© Ralph Nicholson
Alice Martin
 

“We do not think it will (happen soon), and this is the reason why we have our own licensing program,” he said.

“Of course we completely agree with the idea of licensing,” he added. “If you are a real estate agent and CRGAR member, you have to get a specific training class, designed by some of the best real estate lawyers in the country.

“If in the future the government wants to pursue licensing, we will be happy to help with our expertise.”

Draft legislation, which was aimed at regulating Costa Rica’s real estate industry, was first introduced in 1997, and sent to the plenary session of the congress in October of 2000. However, it languished there amongst 200 other draft laws and has now been permanently filed, which means it would have to be re-drafted.

The Global Association of Real Estate was formed in 1999 in Playas del Coco, and today boasts almost 100 members and affiliates. While the bulk of its members are in Guanacaste, it is actually one of two real estate organizations.

The other is the Cámara Costarricense de Corredores de Bienes Raíces (the Costa Rican Real Estate Association, or CCCBR).

Bill Powers, whose Arizona Association of Realtors, actively lobbied the National Association for the right to affiliate with Costa Rica, said they would like to see the two organizations come together.

For his part, Mr Viale said the Global Association of Real Estate was open to an alliance with the CCCBR, and he would like to see what amounts to a sharing of membership.

“We recognize their licensing class and would offer any already-licensed CCCBR members additional membership with CRGAR and an automatic real estate license, without going through our training,” he said.

“Diversity is good. In the end it will generate more benefits for the members themselves as well as the customers.”