Lifting some of the "uncertainty" surrounding value-added tax (VAT) and how it will apply to the real estate sector, along with working with the Bahamas Bar Association to reduce the involvement of foreign real estate agents in Bahamian property sales, were identified yesterday as two top priorities for Carla Sweeting, the incoming president of the Bahamas Real Estate Association (BREA).
Sweeting, a realtor with ERA Dupuch, said that she has "very pressing concerns" about the impact of VAT on the ability of the average person, or a couple, to afford a home.
Sweeting was elected president of BREA last week, succeeding Franon Wilson.
Speaking of some of the "major issues" impacting the sector at present, Sweeting said: "One is the uncertainty of VAT. With every real estate transaction there is a stamp duty paid to the government. For everything over $100,000 the stamp duty is 10 percent. Thus we contribute largely, annually to the Treasury. If we will now have to pay stamp duty on top of VAT, this will make it much harder for the average person, or couple, to qualify. These are all very pressing concerns that we have."
Sweeting said that among the critical uncertainties yet to be resolved is whether various players involved in a real estate transactions, such as attorneys, the insurance companies and appraisers, will have to charge and remit VAT, with this cost then having to be "passed onto the buyers".
"Our association will continue to communicate with the Ministry of Finance and hopefully we can come up with a plan to ease or eliminate this burden. We understand the need to come up with more money to pay off our debt, but we play a vital role in our economy and thus we must not do anything that will negatively impact this," said the realtor.
The BREA president was addressing the Rotary Club of West Nassau at the Poop Deck Restaurant on her vision for BREA yesterday, and said that she will seek to work with the Bahamas Bar Association (BBA) to reduce the sale of real estate in The Bahamas by foreign realtors.
"I will also meet with the bar association as there are a few matters that need to be addressed with them. One is that we must get their support with regard to the foreign brokers and agents selling property in The Bahamas. Our act is very clear, that only a Bahamian can engage in the practice of real estate in this country. We are very happy to pay referrals but never, ever should they be allowed to sell and get full commission."
Sweeting said she would also like to see more listings in The Bahamas take place via the Multiple Listing Service (MLS), launched in 2008.
""It allows agents to access other agents' listings and information and to be able to share these with their clients and customers. This site also provides stats and information regarding sales to agents and appraisers. We have over 230 members on the MLS, a great tool for everyone including the small firms and individual brokers. I would love to see this one day being the only way to list in The Bahamas, as is the process in all of North America, Canada and the Cayman Islands."
Noting that these are just some of her most pressing concerns as it relates to the industry, Sweeting expressed a vision for the association as one which furthers itself through "education and knowledge" and is able to gain a greater appreciation from the general public as to why it is "so important to use a licensed realtor".

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