This is an opportunity for empowerment
Introduction
It was in 2004 the then Government passed legislation whereby only Turks and Caicos Islanders were to be brokers and real estate agents. Those individuals that were already in the industry for five years were to be grandfathered in the legislation. Unfortunately, there were no regulations in place for this ordinance and so non-Turks and Caicos Islanders continue to be brokers and real estate even though they knew the intention of the Government. In 2009 another attempt was made to make changes. While the bill was passed in the House of Assembly in June 2009, the Governor never assented the bill.
I am not aware of any attempt by successive Governments since 2009 to further update this legislation and to pass the regulations. Well finally it looks like attention is being given to this bill. The first reading has already taken place in the House of Assembly and the second reading is expected to take place on December 10th.
The key changes to the real estate amendment
One of the key changes is that to be a salesperson in the real estate industry, you must be a Turks and Caicos Islander. This means work permit holders and permanent resident holders should not be admitted in the real estate industry.
Another part of this Ordinance is that a company cannot be issued a broker license unless the company is 100% owned by Turks and Caicos Islanders. This means you cannot have any owners who are not Turks and Caicos Islanders, and you cannot enable fronting.
Finally, the existing brokers and companies that do not meet the requirements in the aforementioned two paragraphs will have twelve months to remain in the industry after the Ordinance is passed.
The Real Estate Industry Outlook
The real estate industry in the Turks and Caicos is one of the most vibrant industries in the country. According to Turks and Caicos Sotheby International Realty, in 2023, the total real estate sales were $782, 412,342. Their third quarter report revealed $107.3m in condo sales, $224.5m in single family homes, $147.9m in land resulting in total sales of $479.7m.
The standard commission rate on the sale of the vacant land is 10% and 6% on constructed properties. With the 3rd quarter results, the commission on the land sales is $14.79m and the commission on the condo sales and single-family homes $19.91m.
Turks and Caicos Islanders get involve in the real estate industry
I encourage Turks and Caicos Islanders to get involve in the real estate industry. Consider the above calculations for the commission. This is an opportunity for you to be empowered and make some more money. Embrace it. Be consistent, develop a network, take the initiative in reaching out to potential buyers and sellers, promote your business and develop a brand for yourself and business.
You do not need to have a special degree to be in the industry. In fact, you do not need a degree. You just need to be confident in your ability to sell. Do not let anyone intimidate you or make you feel inferior.
Conclusion
More Turks and Caicos Islanders must benefit from this thriving real estate industry and this bill is one way to ensure that. Therefore, I urge the Government as soon as this Ordinance passes in December, to ensure the regulations are passed as we do not want a repeat of what happened post 2004. In addition, all the relevant departments, including the Business Licence and the Immigration Department, must ensure that this Ordinance is enforced.
I do believe though what may happen is that some non-Turks and Caicos Islanders will want to sell real estate in TCI from another country. I am not sure what needs to be done to counteract this because I heard that it is already happening anyway whereby individuals do not have a licence here to sell real estate but gather information from the local real estate agents and then turn around it and sell in the home country remotely.