By Raymond Kongwa ,Guardian Staff Reporter raymond@nasguard.com

Bahamian real estate agents and the local industry as a whole are presently facing a tremendous challenge from foreign agents who illegally sell Bahamian real estate, says Bahamas Real Estate Association (BREA) President Pat Strachan.

A Certified Residential Specialist (CRS), this week's featured Who's Who in Financial Services, spoke with The Guardian about present trends in the local real estate industry and the outlook for BREA and its agents.

"We are losing anywhere from 10 to 15 million dollars in commissions [yearly] to these foreign agents coming to our country and selling Bahamian real estate. Basically how its done is (that) the foreign agent will come from Florida. He brings his prospect over here and he solicits listings, and he may contact landowners and homeowners directly, and basically cut out the local agent."

Mr Strachan points out that such behaviour is criminal, under the Real Estate Brokers and Salesmen Act 1995. With regards to this issue, the BREA president says, "We haven't received the cooperation that we feel we ought to be getting from the various authorities, inclusive of the government."

He points out that the proper procedure is for a foreign agent, working on behalf of a prospective foreign buyer, is to utilise a local agent when seeking to acquire property here. He says this process allows the local agent to receive a commission and is a standard real estate practice throughout the world's real estate markets.

While stressing the importance of correcting this issue in the shortest possible time, Mr Strachan reports that in other areas, the industry is thriving. One such area, he notes, is the professionalism and acute training of BREA agents.

BREA agents are the best trained and most professional throughout the Caribbean and Florida says Mr Strachan. He adds that 20 per cent of BREA's membership are also members of the Council of Residential Specialist, an organisation he calls "one of the most effective real estate networks in the world." Strachan notes that the council has a global membership of 35,000.

The Bahamas Real Estate Association was founded in 1959. With the passage of the Real Estate Brokers and Salesmen Act, 1995, the association was empowered by law to oversee the practice of real estate business throughout The Bahamas and to ensure that all Realtors are licensed for the protection of the general public.

Any person requiring real estate services should first determine if the Realtor is actually licensed. This can be achieved by simply requesting a copy of the Realtor's license, or by contacting the Bahamas Real Estate Association for confirmation.

Mr Strachan forecast lots of activity for the local real estate market. "There is more optimism out there from the public, based on conversations with my members", he says. He told The Guardian that agents were receiving increased numbers of inquiries, which he says is always a good sign.

He said proposed capital developments were another reason for optimism in the industry, noting that family islands, particularly Abaco were showing "very positive signs."

A high school dropout at age 15, Mr Strachan recalls that his interest in real estate first came after he viewed a parcel of land being offered by Mike Lightbourn Realty in 1975. That interest would grow and in 1987 he landed a job as a sales agent with Gold Circle Real Estate.

After nine years at Gold Circle, where he became sales manager, Mr Strachan left the company and in 1997 formed his own. With an eye for the business and lots of discipline, perseverance and tenacity, gained during his storied career as a boxer, he was elected BREA president in 1999.

In this, his second stint as president, Mr Strachan vows to work in the best interest of the industry and most of all to eradicate the practice of foreigners illegally selling Bahamian realty.