The regulation of real estate practice in Uganda is currently in a transitional phase, with several key stakeholders and associations working towards establishing a more organized and professional framework for the industry. The effort is driven by the need to enhance professionalism, protect practitioners, and provide better services to clients. This blog therfore provides an overview of the vibrant discussions among key real estate practitioners on various platforms regarding this topic.

Key Stakeholders.

1. Surveyors Registration Board (SRB): The SRB is currently at the forefront of these registration efforts. The board is responsible for registering land agents, who are currently classified under surveyors according to the Surveyors Registration Act (SRA).

2. Association of Real Estate Agents Uganda (AREA Uganda): AREA Uganda is a professional association that advocates for the interests of real estate agents. It has been instrumental in pushing for regulatory changes and has collaborated with SRB to advance the industry's professionalism.

 

3. Ministry of Lands, Housing, and Urban Development (MLHUD): The MLHUD provides policy direction and oversight for land and real estate matters in Uganda. This ministry plays a crucial role in shaping the regulatory framework and ensuring that policies align with the national development goals. The MLHUD's involvement is critical in the drafting and implementation of the Real Estate Bill 2023, as well as in providing guidance to the SRB and other stakeholders on regulatory matters.

Current Legislative Framework.

Surveyors Registration Act (SRA): The SRA includes land agents in the definition of surveyors, which has led to some confusion about the classification and regulation of real estate agents. According to Dr. Ssegendo, the SRA provides a pathway for registering land agents, who are responsible for managing land or buildings.

Real Estate Bill 2023: Although not yet enacted, this bill aims to specifically regulate the practice of real estate agents. The bill's objective is to formalize the profession, setting standards and guidelines for practice. However, some stakeholders argue that the current legislative framework already provides a pathway for the registration of land agents while the new a bill is finalized.

Ongoing Debates and Perspectives.

1. Harmonization Efforts: Vincent Agaba emphasizes that having some rules in place is better than having none. The efforts by SRB and AREA Uganda to self-regulate are seen as steps in the right direction. This sentiment is echoed by Simon Shana, who believes that organizing and professionalizing the sector will attract more attention from the government and other stakeholders.

2. Nomenclature and Classification: The definition of land agents as surveyors under the SRA has sparked debate. Dr. Ssegendo clarifies that while land agents are included in the broader category of surveyors, this classification is a matter of nomenclature. He draws parallels with other professions, where similar reclassifications have occurred without altering the profession's foundational principles.

3. Registration and Recognition: The process of registering land agents under the SRB has begun, with Vincent Agaba encouraging colleagues to get registered. This move is seen as a preparatory step for the upcoming Real Estate Bill 2023, ensuring that a foundation of registered professionals is in place once the bill becomes law.

4. Professional Associations: The recognition of AREA Uganda by the SRB under Section 15 of the Act is an important development. However, concerns have been raised about the existence of other associations and how they will be integrated or recognized. Mr. Irumba points out that AREA-U and the ISU (Institute of Surveyors of Uganda) are different entities, with ISU being a professional body and AREA-U more inclusive.

 

5. Academic and Professional Integration: Rachael Arinaitewe supports the discussion by acknowledging the role of academia in the professionalization of the real estate sector. She mentions the contributions of universities like MUBS, Uganda Martyrs University, and Victoria University in training real estate professionals. Arinaitewe's input highlights the critical link between academic institutions and the evolving regulatory framework, emphasizing the need for legal protection for graduates entering the profession.

 

6. Seeking Clarity and Proper Procedures: Irumba raises important questions about the distinction between land agents and real estate agents, seeking clarity on the legal definitions and the roles of different associations. He argues that SRB should develop clear regulations and guidelines for the registration of land agents and calls for policy and legal guidance from the government. Irumba's concerns reflect the need for a well-structured regulatory framework to avoid confusion and ensure proper implementation.

 

7. Diverse Perspectives and Engagement: Various other participants contribute to the discussion by expressing their support, concerns, and suggestions. They emphasize the importance of robust discussions, the need for a professional body for real estate agents, and the significance of incremental progress. Their contributions add to the richness of the conversation, highlighting the diverse viewpoints and the collaborative spirit among stakeholders.

 

Another participant criticizes those opposing the new developments, calling them "pedestrians" who haven't followed the industry's regulatory efforts. He also highlighted the lengthy history of attempting to regulate the real estate sector and appreciated the current leadership for making progress.

 

Edmund supports the ongoing efforts, emphasizing that by the time the Real Estate Bill becomes law, a foundation would have already been laid. Irumba sought clarification on whether land agents and real estate agents are the same, and questioned the rush to register agents without proper guidelines and regulations. He suggested seeking policy and legal guidance from the government.

 

Dr. Ssegendo contributes by sharing his experience in advocating for the Real Estate Bill 2023. He highlighted that while the bill aims to regulate practice, it does not establish the real estate agency as a distinct profession. He warned that without setting up the profession first, the bill might face challenges similar to those encountered by the Physical Planning Act 2010. He also clarified that the SRB can recognize other professional associations in the real estate sector, not just AREA Uganda.

 

Another participant, Mushamba Dauda, stresses the importance of allowing everyone to express their viewpoints, warning against the rush to regulate without proper consultation. Similarly, another contributor argues that the SRA, being outdated, should not be the sole basis for regulating the current real estate practice, advocating for a separate and updated regulatory framework.

Analogy: A Football Match Without a Referee.

Vincent Agaba provides a compelling analogy to illustrate the current state of real estate regulation in Uganda:

"Imagine a football match being played for so long without a referee and linesmen. How many players and spectators have been injured in the process? Now, some referee (SRB) sobers up and blows the whistle, and some people who knowingly or unknowingly want the confusion to continue start questioning. Some rules are better than no rules at all as the so-called super rules get underway. We shall harmonize when we get there."

This analogy highlights the chaos and risks involved in operating without regulation. Just as a football match without a referee leads to injuries and disorder, the real estate sector without proper regulation faces significant challenges and risks. The introduction of even preliminary rules and regulations by SRB and AREA Uganda is seen as a necessary step towards creating order and professionalism in the industry.

Challenges and the Way Forward.

The path to regulating real estate practice in Uganda is not without challenges. Some key issues include:

Need for Clear Regulations: There is a call for clear regulations and guidelines for the registration of land agents. Mr. Irumba and others have emphasized the importance of having a well-defined legal framework to avoid confusion and potential legal challenges.

Transition to New Legislation: The upcoming Real Estate Bill 2023, once enacted, will provide a more specific regulatory framework for real estate agents. Stakeholders are working to ensure that the transition from the current system to the new one is smooth and that existing registered agents are seamlessly integrated into the new framework.

Collaboration and Consensus: Continuous dialogue and collaboration among stakeholders, including SRB, AREA Uganda, and the Ministry of Lands, Housing, and Urban Development, are crucial. The input and feedback from practitioners are valuable in shaping a regulatory framework that is comprehensive and effective.

In conclusion.

 

The regulation of real estate practice in Uganda is evolving, with significant efforts being made to professionalize the sector. The collaboration between SRB and AREA Uganda, along with the anticipated Real Estate Bill 2023, promises to create a more organized and regulated industry. As these efforts progress, continuous engagement and consensus-building among stakeholders will be key to addressing the challenges and achieving the desired outcomes. My opinion, like that of some stakeholders, is that for now, we should follow the current law until the new law takes effect, rather than waiting amidst the chaos.