Paul Beasley: What is the Association of International Property Professionals? What role does it fulfil within the overseas property market?

Paul Owen: The Association of International Property Professionals (AIPP) was founded in March 2006 to enhance the professionalism of the international property industry.

The intention of the AIPP is to develop a more positive profile for the industry, to improve educational and training standards and to ensure purchasers receive high quality customer care throughout the sales process. As a body, it aims to provide a collective voice for the industry on key issues and to provide regulation, thereby giving the public an industry reference point and recognisable kite mark for quality assurance. 

Paul Beasley: Are there any other organisations fulfilling a similar role? If so, is this a good thing or a bad thing for the consumer?

Paul Owen: The only other recognisable body with the same aims is the overseas division of the National Association of Estate Agents (NAEA). The overseas property market is an almost entirely unregulated market and many people felt that a means for both buyers and industry insiders to identify good professional agents from the not so good was essential. In the absence of a government lead, the industry has taken up the challenge to regulate itself.

Taking heed of the experience of the financial services industry, which did not put its house in order and therefore was subject to very expensive and cumbersome government regulation, the overseas property market would like to make sure we put the industry in a better position to either avoid government regulation or to play a significant part in shaping that regulation.

As a non-profit organisation, the AIPP has no agenda other than to improve standards of professionalism in the international property market. By bringing together professional companies under one badge of membership, we can go to the buying public and say 'buy where you see this sign; our members have voluntarily agreed to follow a professional code of conduct, one established to help and reassure you, the buyer of overseas property.'

Paul Beasley: Bulgarian Dreams was recently expelled from the AIPP for failure to comply to the Association's rules.  What is the AIPP Code of Conduct?

Paul Owen: All Members have voluntarily signed up to follow the AIPP Code of Conduct,  a code established to set professional guidelines by which all companies should work. Just being an AIPP Member is an illustration of a company's commitment to high standards in their work.  The AIPP Code of Conduct can be viewed in full on the AIPP website: http://www.aipp.org.uk/code_of_conduct.asp

Bulgarian Dreams was expelled for failing to provide answers to questions from a Disciplinary Panel about their adherence to the AIPP Code of Conduct. The benefits of carrying the AIPP Member badge come with an obligation to follow the Code and part of that is to answer to the AIPP if and when any complaint is made about an alleged failure in following the Code.

Paul Beasley: How many countries have legislation in place that ensures a minimum standard of training and regulation for property agents?

Paul Owen: There are not many countries with robust regulation imposed on the sale of property. France is, arguably, the best regulated; the US and Australia are also well-regulated. Even so, people can still be caught out in a regulated environment as agents selling in those countries but operating outside their jurisdiction (for example, an agent based in the UK selling US property) can often present themselves as regulated when they're not. The key is for buyers to make sure they protect themselves – it's your money you're spending: be prudent who you spend it with. Ask lots of questions of agents and developers (I often advise overseas property buyers to act like three year olds: Why? Why? Why?), get everything confirmed in writing, make sure you employ a lawyer who is ONLY working on your behalf and don't be tempted into buying more than you can afford.

Paul Beasley: How does an overseas property agency qualify for membership of the AIPP?

Paul Owen: We must see evidence of at least three years' experience in the international property market or several years of other relevant experience to qualify for membership. We also get professional references on the company, we ask for company paperwork, and we also reference the reference too, if that makes sense! All Members also sign a declaration confirming their suitability for membership and agreeing to follow our Code of Conduct voluntarily. In total, 19% of membership applications were refused or withdrawn upon further enquiry in 2006, rising to 21% in 2007.

It is not possible to check every transaction taking place in the market, even those only involving our members. Therefore, we cannot use words like 'guarantees' or 'protection' when talking about our Members – no body can offer that. However, in an almost entirely unregulated environment, our members have voluntarily agreed to follow our professional code and to face disciplinary action if they do not. That should give buyers reassurance about a company and, importantly, redress to the AIPP if problems occur. By following the guidelines above (ask why, use independent lawyer etc.), consumers help to protect themselves; in addition, our members have taken the important step of agreeing that they must recommend independent lawyers, they must not mislead, exaggerate or pressurise.

At all times, Members must act with honesty, transparency and integrity; they also agree to be bound by the AIPP Disciplinary Procedure, as published on the AIPP website at: http://www.aipp.org.uk/disciplinary_procedure.asp. In our recent survey, 94% of consumers in the UK and Ireland said that such a market (with agents and developers agreeing to professional guidelines and facing action if they fail to do so) was what they wanted. It's now up to the consumer to make the industry follow their lead. Ask if a company is a member of the AIPP (or other respected trade body) when you're first talking to them. By your diligence as buyers, you can help improve the market for yourselves.

There is a full list of AIPP members on our website and visitors can search by company name, membership number or simply view the full list.

Paul Beasley: Are cases bought against AIPP members by consumers? If so, would you say that such consumer protection/recourse is the main goal of the AIPP?

Paul Owen: Yes, most of the complaints we receive are from consumers. We have to be careful in saying that consumer protection is the main goal because that may present us as a consumer watchdog, which we are not. We are a trade body, a professional association. We represent our members and, through our work, expect to improve standards of professionalism in the international property market. Improvement of those standards and encouragement of excellent customer service will help our members become better companies. A market of better, more professional companies who check their product carefully, sell it honestly and deliver on the customer promises they make will give the consumer more protection as it will be a safer market. The result is the same as a consumer watchdog would be hoping to achieve; the means, and the accountability, are different.

Paul Beasley: What objectives does the AIPP have for the remainder of the year?

Paul Owen: To uphold and encourage professional standards by providing our members with a template for best practice and to raise the profile of AIPP membership amongst buyers of property overseas. In an uncertain market, there has never been a more important time to make sure that the company you trust to purchase your property overseas will deliver upon their promises. We've launched the AIPP Awards this year to reward and highlight the very best standards of customer service within our membership. Every company will receive feedback on their entries from an independent panel of industry experts and respected outsiders – we expect the awards to create a professional benchmarking system for our market. Look out later this year for the 11 winners' badges of our independent awards!

As buyers, you now have a choice to spend your money with a company agreeing voluntarily to a self-regulation or to spend it elsewhere without that reassurance and without recourse if problems occur. The AIPP has no agenda other than making this market better. We're selling you, the buyer, nothing. We're giving you, the buyer, something. Make the most of it. 

For more information visit:
www.aipp.org.uk

Article first published 14 May 2008