The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A senior realtor yesterday said large appraisers were “screaming murder” over two Canadian bank’s proposed management system because it would ensure they no longer received “the lion’s share” of business.

The realtor, a leading member of the Bahamas Real Estate Association (BREA), told Tribune Business that the appraisal manager, and system, proposed by Royal Bank of Canada (RBC)and Scotiabank would share the work more evenly among industry professionals.

Speaking on condition of anonymity, and giving a different perspective on the recent row, the realtor said Bahamian commercial banks were in the habit of giving “95 per cent of the business” to large real estate firms - the ones he argued that were doing most of the complaining about NAS Appraisal Services.

Arguing that this had resulted in smaller appraisers being ‘squeezed out’ of the market, despite being just as qualified as their larger counterparts, the realtor said: “I think those guys who are complaining are the big guys who are getting the lion’s share of the work from the banks.

“This [NAS] system will be on a portion basis. The biggest concern these guys have is they are going to lose business because it’s going to be shared around more evenly among other appraisers, including myself.”

They added: “Right now, the banks are dumping business on those guys, while small appraisers don’t get anything.

“They are screaming murder because they would have to stand in line with everyone else. They’re getting the feast, while we’re getting all the crumbs.

“It really amazes me these guys are screaming murder because the banks are giving them 95 per cent of the work. I know what I’m talking about. We get nothing from the banks. We have all the accreditation, all the insurance, and yet the banks drop all the business in their lap.”

The realtor said a similar situation was occurring in the legal profession, where the Bahamian commercial banks were only giving work to large firms.

They added that they only had concerns on “one or two small points” concerning the NAS contract, and arrangements.

Tribune Business revealed earlier this week how the dispute between Bahamian realtors/appraisers and RBC and Scotiabank, over the latter’s plans to impose NAS and its system on them, was coming to a head.

Royal Bank had wanted all appraisers to sign up to the NAS contractual agreement by yesterday, but agreed to waive this deadline.

The contracts were said to be heavily slanted in NAS’s favour, as these completely “indemnify” NAS Valuations Inc against claims and lawsuits initiated by both realtors and appraisal clients.

Real estate sources said other objectionable clauses in the contract included those that required the Bahamian realtor/appraiser to pay all its legal costs should homeowners (any third parties) file a lawsuit against it.

This newspaper’s sources also previously expressed concern about whether Bahamian law and regulations allowed NAS to even operate in this nation, given that the Real Estate Act says only Bahamian nationals and foreign permanent residents with a right to work can be licensed as realtors.

Tribune Business was told that when NAS first applied for a Business Licence in the Bahamas, it held itself out as a computer software/services company, rather than an appraisal management firm.

If the NAS system had been implemented, rather than Bahamian appraisers dealing directly with Scotiabank and Royal Bank of Canada on property appraisals, they would interface with NAS, who would collect their work, submit it to the bank and be responsible for paying them.

In addition, Tribune Business was told NAS would also have sought to ‘categorise’ Bahamian appraisers according to their expertise and specialisation, dividing them into those who will do high, mid and low-end residential valuations respectively.

Robin Brownrigg, Bahamas Realty’s president and a leading appraiser, told Tribune Business previously that NAS and its system were a ‘game changer’ for the way Bahamian appraisers did business.

He said: “At this stage of the game, our professions are in jeopardy and our livelihoods, to a great degree, are in jeopardy.

“If I lose the appraisal base for Bahamas Realty, we may as well close up and call it a day. We can’t take any more in this economic climate. It’s got us hugely, hugely concerned.”

Tribune Business revealed earlier this week how realtors were complaining that RBC and Scotiabank were both employing ‘strong arm’ tactics to force appraisers to sign up with NAS.

This newspaper was informed that Royal Bank had orally warned BREA members that unless appraisers signed the NAS contract by yesterday, they will no longer receive any work from the bank. That demand has, of course, been rescinded.