The Tribune

EDITOR, The Tribune.


Forty-one years of Independence on July 10, 2014. Really? Did you read the Business Section of The Tribune on July 8, 2014?

The president of the Bahamas Real Estate Association is “on pins and needles” over sought-after Bahamian government responses that will determine the next move over the controversial appraisal system being pushed by two Canadian-owned banks.

And is this because of the independent Bahamas or the colonial Bahamas? Let’s look at it.

In normal times it is fairly easy for incompetent work not to be exposed if it is lodged into inefficient systems. But when something goes wrong and it becomes necessary to test authenticity it is difficult to miss the incompetence!

Something went wrong. The Bahamian economy reversed and stayed in a negative condition so long that jobs were lost, mortgages couldn’t be paid, the mortgagees (the commercial banks) found themselves having to test the authenticity of the mortgagors’ property which they held as collateral.

Specifically, the value of the property to determine how they (the banks) would make good on those outstanding loans which were not being serviced took the focus. Some call it the “sh- -hits the fan”.

The incompetence of some who practice real estate appraising surfaced (as did the inefficiencies of the loan areas in the banks).

It surfaced in such a fashion as to put some lenders in a disadvantaged position.

The banks find this unacceptable and they wish to correct the system – meaning they wish to make real estate valuations more reliable.

One of their main challenges is the fact that the Bahamas Real Estate Association (BREA) has licensed the appraisers.

So they must find a way to avoid using those licenced appraisers whom they consider to be incompetent.

Well! One cannot argue against efforts to ascertain competency.
Certainly it is in the best interest of all.

The question is, though, is this independent Bahamas capable of modifying the system to guarantee competency, or must Canada (i.e. banks based in Canada) take control and treat us as a colony?

The local Scotiabank and First Caribbean International Bank are being told that Canadian NAS Valuations Company should come to the Bahamas to manage the appraisal services here.

A data bank of real estate transactions and appraisals is desperately lacking.

NAS Valuations, in its efforts to manage the appraisal services, will be provided with the necessary information from Bahamian professionals in the Bahamas to create this data bank.

The data banks, then, will belong to Canada’s NAS Valuations, not the Bahamas.

It will be controlled by Canada’s NAS Valuations and the Bahamian real estate appraisers will have their professional services controlled by Canada’s NAS Valuations.

Really, how does 41 years of Bahamas Independence fit in?

Why is the president of BREA on “pins and needles”?

ARTHUR JONES
Not a BREA member
Freeport,
Grand Bahama,
July 9, 2014.