Assessing the impact of unregulation of brokers in the real estate industry in Kampala

Abstract

The study aimed at assessing the impact of unregulation of real estate brokers in the real estate industry in Kampala. It was made up of four objectives; determining the impact of unregulation of brokers in the real estate industry in Kampala, determining the causes of unregulation of brokers in the real estate industry in Kampala, determining the challenges affecting regulation of brokers in the real estate industry in Kampala and the recommending ways to regulate brokers in the real estate industry in Kampala. Literature was reviewed looking at what had been written by previous researchers on real estate definition, types of real estate, real estate brokerage, origin of the term real estate, real estate broker, differences between real estate agents and brokers, regulation of brokers and also looked at the objectives in detail. The study was conducted using a cross sectional research design study. A sample size of 248 registered and 248 unregistered real estate agents was used. Simple random sampling was used for the registered agents while snow ball method was used for the unregistered agents. The researcher primarily collected data with the aid of a self-designed structured five point Likert scale questionnaire. 248 questionnaires were distributed to both unregistered and registered real estate brokers. 186 questionnaires were filled in by the unregistered real estate brokers and returned while 191 questionnaires were filled and returned by the registered real estate brokers. Data generated was analysed using statistical measures such frequency, mean, standard deviation and mode. Relative indices were used to rank Likert scales. Demographic data was presented using tables and charts like pie charts, bar charts and frequency charts. The analyses were conducted using a computer software package called SPSS version 25. Results showed that there was a need for Uganda’s real estate industry to be regulated due to the increased fraudulent tendencies in the industry. The researcher concluded that, indeed, there was a need for the sector to be regulated and recommended that there was need for, among others,: introduction of laws governing real estate brokers to set clear guidelines on the workings of the industry and also manage the proceedings of real estate agents so that estate agents act in the best interests of their clients, licensing and certification of real estate brokers, establishing an administrative body to govern and oversee the day to day administration of all real estate agents., restricting the title real estate agents to only licensed agents and introducing minimum qualifications like age as entry barriers