RESIDENTIALlettings
Although it is not the main aim of the
disciplinary process, Martin says, “There have been a couple of happy endings.” In some cases, clients’ deposits have been recovered. In one case, a completion was delayed, and the property delivered was not to the agreed specification. The contract gave the clients the right to recover their deposit at any time, but the developer would not honour it. After an appeal, the developer settled, and honoured the contract. However, other developers have only refunded deposits after selling the property, in some cases AIPP was unable to recover client monies. If an agent or developer has gone
bankrupt, there is not a lot that AIPP can do. “We’ve had more success in the ‘I’m unhappy’ cases where there’s a gesture the firm can make to sort things out.” He believes that many cases that come
to the AIPP reflect a lack of professionalism in members. “Where the members fail is generally a lack of process.” In some cases agents and developers do not keep adequate records of payments. One client
Martin Dell
lost money after the developer went under. The agent said it had forwarded funds to the developer, but while large amounts of money had passed between the two
parties, neither had a record of what those payments related to, so no amount could be reconciled to the client’s payment. Without a paper trail, it was impossible to trace the relevant transaction. In such cases, AIPP can recommend that
firms put better processes in place; it can suspend their membership while such action is being taken, or expel them until such improvements have been made. “That’s where we’ve got more clout,” Martin says; “We can say to a member company, you need to be able to document all payments passed on to the developer, and we will come back in three months and check.”
So although AIPP might not be able to
make full restitution to clients of member firms, its disciplinary system is nonetheless gradually improving the professionalism of its members. This is where its real importance lies. However, without compulsory registration, it’s difficult for AIPP to make a difference. Martin admits that, “Most people choose not to join in the first place, so it is difficult for AIPP to have a major impact.” So it is a long, slow process to improve the professionalism of the overseas property industry as a whole. However, once firms have joined up, the sanction of being expelled from AIPP does appear to work, member firms don’t want the adverse publicity that would result. He definitely believes in the work of the
AIPP, though, however slow it may be, and however much personal effort it takes. “It takes up my time, and it’s gritty work,” he says, “but it’s one of the things I can do to put my money where my mouth is.”
Any views you’d like to express on this?
www.propertydrum.com/articles/AIPP
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