Over the last twenty years, the Real Estate sector has become one of the pillars of the Mauritian economy. With the introduction of the Integrated Resorts Scheme (IRS) projects in 2002, the sector has undergone a major transformation in terms of quality and quantity. The real estate sector contributed 5.9% to the Gross Domestic Product (GDP) in 2019. However, the sector was not regulated, hence the introduction of the Real Estate Agent Authority Act (REAA) by the government in 2020.
In the recent past, most Mauritians who wanted to buy a property – house or land – dealt through brokers. Unfortunately, among these brokers, some were also dishonest. Ignoring the laws in force, their customers had to deal with issues through the price, the administrative burden and commission fees. Ending up buying a property twice as expensive as its real value.
Local market knowledge
This is why it is essential to use a recognized estate agency for any transaction. With an excellent knowledge of the local market, an estate agent allows a person to buy or sell a property with complete peace of mind. A real estate professional can better assess the real value of a property you wish to sell.
Moreover, Bénédicte Duvivier, Branch Manager of Fine & Country, recommends that all property transactions be carried out through estate agents. According to her, going through an estate agency has many advantages for both the buyer and the seller. The real estate agent’s increased knowledge of property sales opportunities, but also of the product range in general, the various property promotions, the best deals, the transaction amounts and the accessibility of property data are among the main advantages.
“Going through a real estate agency is the guarantee of being in the hands of professionals who will know how to direct and guide the buyer towards the properties that will meet their criteria; but also the seller in order to determine the selling price corresponding to his property in the process of positioning the property on the market and defining the marketing strategy in order to ensure the success of a sale,” explains Bénédicte Duvivier.
An estate agency masters all the stages of a property transaction and can advise its clients at any time. “The agency knows the steps involved in buying or selling a property. This allows the buyer or seller to organize and plan the various aspects, such as the financing of their project for example.
Guiding the buyer or the seller
According to Bénédicte Duvivier, the real estate agent will be able to guide her clients towards the legal structures, the possibilities of purchase or investment – the different residential schemes, namely Property Development Scheme (PDS), Integrated Resort Scheme (IRS) or Real Estate Scheme (RES).
“It will ensure that the buyer does not take any risks with the options offered to him. Therefore, avoid investing in a scheme that is not authorised or appropriate with the risk to lose their deposit. The real estate agent, an expert in his field, will be able to direct the buyer or seller to various parties such as bankers, asset managers, notaries, surveyors and other real estate assessors.”
Coming back to the REAA, with the increase in unreliable real estate transactions and for more transparency in these transactions, the Mauritian government introduced this new legislation. Under the REAA, no person can act as a real estate agent if he is not recognised as such by the Real Estate Agent Authority. It must be noted that before the REAA, almost everyone claimed to be a real estate agent. Now, under the law introduced in 2020, an estate agent must hold a degree in real estate or any other equivalent qualification and have at least five years’ experience in this field.
As for a business, it must be incorporated under the Companies Act and have as director, someone who is certified by the Real Estate Agent Authority as an estate agent. However, despite the REAA being in force, real estate agencies are constantly growing across the country. Ignoring the penalties of up to Rs 100,000 fine and imprisonment for up to 2 years, these self-proclaimed and doubtful “real estate agencies” continue to post advertisements for the sale of property. The best way is thus to contact an estate agency to buy or sell a property to avoid any inconvenience.
Fine & Country Mauritius : quality service ensured
Fine & Country is a subsidiary of the Evaco group. The estate agency offers a wide range of high quality products. Operating in close collaboration with its head office in London, Fine & Country is committed to providing a professional service focused on the needs of its customers. It uses a unique marketing approach that makes property transactions much easier. With the support of innovative tools, Fine & Country is able to meet the needs of its most demanding clients. Selling or buying a home is a delicate process and to avoid unpleasant surprises, Fine & Country’s agents accompany clients every step of the way.