National News

Count down for unlicensed agents

The Real Estate Management Council (Remac), established six months ago to regulate and professionalise Malawi’s real estate sector, is facing significant operational challenges, including the absence of offices, staff, a board and regulatory guidelines.

Remac chief executive officer Sarah Kauta Chauma acknowledged the challenges in an interview, saying the council has not yet commenced operations despite being formulated in May this year.

“It was established in May but has not started operations because the secretariat has not secured office space and recruitment of staff is yet to be done,” she said.

Chauma added that the council is also yet to have a board to oversee its operations.

“Additionally, we are waiting for the Ministry of Lands to formulate regulations that will guide our operations,” she said.

Unscrupulous real estate agents prey on house
seekers in areas like these. | Nation

According to commentators and industry experts, the delays are disadvantaging both tenants and landlords, as estate agents — including unregistered ones — continue to operate with little oversight.

These agents often determine commission rates and house-viewing fees at will and, in some cases, exploit desperate accommodation seekers. Some tenants, for example, struggle to recover deposits after agents allocate houses to other clients who allegedly offer kickbacks.

However, Chauma said there is hope that order will be restored once Remac becomes fully operational.

“Once everything is in place, we will crack down on unregistered agents and bring sanity to the sector,” she said.

Blantyre resident Steven Nkhoma said finding decent and affordable housing has been a major challenge during his 11 months in the city.

“I first settled in Kanjedza, then moved to Chigumula, later to Soche, Chiwembe and Namiyango. All these moves involved agents who demanded K10 000 viewing fees and 40 percent commission for houses that did not meet my specifications,” he said.

Similarly, Patrick Thonyiwa of Area 25 in Lilongwe and Henry Malata of

Mzuzu said they each paid up to 50 percent commission and K20 000 in viewing fees to agents who facilitated access to their current homes.

Industry experts say unscrupulous agents have thrived due to weak law enforcement, low public awareness and legislative gaps.

Chartered Surveyor and RICS-registered valuer Davies Jiva Khumayo proposed adopting a UK-style regulatory model, where professional bodies oversee agents’ conduct, investigate complaints and impose sanctions.

“In the UK, organisations such as ARLA Propertymark or NAEA Propertymark enforce standards, investigate complaints and impose sanctions,” Khumayo said.

He added that the Property Ombudsman provides a structured dispute resolution mechanism and suggested Malawi establish a publicly accessible register of licensed agents, standardise professional requirements and create complaint-handling procedures to restore public trust.

Khumayo noted that fewer than 100 registered estate agents currently operate in Malawi, a figure he said reflects a sector that has never been fully supported.

“Before the 2024 Act, unlicensed operators exploited gaps in the Land Economy Surveyors, Valuers, Estate Agents and Auctioneers Act of 1989,

which prohibited unlicensed practice but offered limited regulation of firms,” he said.

Local real estate expert and Real Estate Talk Malawi managing partner Prince Matchika agreed, describing unlicensed agents as a symptom of deeper structural problems in the housing sector.

“These informal agents exist because there is real demand for housing, and they fill gaps that formal systems have failed to address. They are well-connected to landlords who often refuse to pay agency fees, shifting the burden to desperate tenants,” he said.

Matchika added that despite the establishment of Remac, many Malawians still rely on unlicensed agents because they are accessible and perceived as effective.

“Low public awareness about licensed agents and weak enforcement have allowed informal practices to persist. Landlords engage these agents to avoid costs, while tenants accept unregulated fees due to limited options,” he said.

He recommended a clearer and fairer fee structure, proposing that both landlords and tenants share agent fees.

“A balanced approach would be for landlords and tenants to share agency fees instead of placing the entire burden on tenants. Remac should also set standard rates and ensure transparency to build trust in the industry,” he said.

Human Rights Defenders Coalition chairperson Michael Kaiyatsa also expressed concern over the exploitation of tenants by unlicensed agents.

“Access to safe and affordable housing is a fundamental right. When citizens are defrauded or overcharged by unlicensed agents, their dignity and economic security are violated,” he said.

Kaiyatsa called for stronger enforcement measures, including penalties for illegal operators, and urged Remac to publicise a list of licensed agents to improve public awareness.

“There is a need for broader reforms to enhance accountability and transparency in the housing sector. Failure to act undermines confidence in regulatory institutions and the rule of law,” he warned.

Overall, stakeholders agree that Malawi’s housing sector requires comprehensive reforms in legislation, policy, enforcement and public awareness to effectively regulate estate agents and protect consumers.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Back to top button