Property agency and management are not always easy to define and different terms are used in different regions and with individual firms. Overall, it encompasses the following:
- Agency – agents carrying out sales and lettings for both individuals and commercial organisations.
- Brokerage – buying and selling often in the commercial sector or in the residential sector high value properties, this can also include valuations.
- Property management – block management, tenancy management and the management of commercial buildings.
In large firms, the activities above are seen as individual specialisms and carried out within separate parts of the business. Smaller firms usually specialise in one or two of the different areas. Separating agency and management will create clarity for RICS members, consumers, and stakeholders.
Following approval of the RICS Property Agency Management Standards Strategy by the RICS Standards and Regulation Board, RICS is working on reviewing and refreshing the existing body of standards and guidance relating to property lettings, sales, auctions, and agency property management.
RICS will consolidate current guidance into three succinct professional standards, as detailed below.
The Rules of Conduct and Conflicts of Interest standards will also influence these new standards.
1. Property agency and management principles, 1st edition global professional standard
This is a high-level global professional standard that sets out the principles for RICS members and RICS-regulated firms operating in residential, commercial and combined real estate agency and management. This covers:
- sales
- lettings
- management
- auctioneering
2. Property agency, 1st edition, UK professional standard and
3. Property management, 1st edition, UK professional standard
These will be UK-focussed documents and will address key issues such as:
- securing instructions
- acting for the seller: marketing the property
- acting for the seller: agreeing the sale or lease
- acting for the buyer
- ending the instruction
- safety and security
- agency management.
The new professional standards as detailed above, will sit in the overall standards framework as shown in the image below.
The practice documents in this table have either already been published or will be in future.
The current documents that will be superseded by the new professional standards are linked below:
