[Goldberg Global]

I agree more with Tommy than with Nick.

Nick I think your points are valid, and are "ideal world stuff", but reality dictates.

All buyers should get independent legal advice prior to purchase. They pay for that, that is a protection mechanism, second, as an agent, we are only going to sell good things, we want our clients to come back, third by getting mortgage finance on developments, you have a third tier of safety.

I think to put this burden of costs onto a developer or an agent to complie to your private organisations inhouse due diligence report is a non realistic business.

The charges 600 to 1100 pounds sterling to be paid to a third party private company to check out yourself out is non sensical and unrealistic. You are paying to get a badge, a logo, a stamp from the AIPP. The reports and DD are a profit center for the AIPP.

If it was done by a government body and was statute, but not a private company then maybe it has substance and is for the good of people, but as a revenue stream for your organisation it a commerical thing, and looking at profits over the welfare of people.

*i agree due diligence should be done on all things. But to have your guys in London or where ever to do checks at agents and developers expense is not in the real world.

Big developer will say AIPP who are these people, agents will scoff, and ask AIPP, what is it all about, what does it cost to join, what are people getting for this membership a logo. It resembles what happens in the recruitment industry, lots of badges, but some of the members are the "whores" of the business. The people who would sell their own grandmother!

Word of mouth and referral business brings in results, not pay to join club memberships.

Bureaucratic and back slapping. This is a pay to join club, and like many organisations does not address the real questions in real estate. And you expect people to pay more than they already do.

I work in the real world where people dont have 600 or 1100 to start spending on all things to go to a private company to check them out.


Good idea in theory, the implementations I have a problem with, a private profit making organisation charging high prices to do due diligence that is already done by lawyers around the world, that is what you pay them for.
Price rising and bureaucratic.

Why dont you ask buyers to pay for your service? Because they would not pay it!
So you are asking sellers to join your club, and have them pay handsomely for the priviledge.

I believe what happens in Dubai is a good thing, where every development is registered on a central role, which shows which stage of construction it is on. Each must be registered and correct to get onto the list.

This is free from bias. It is also FREE of charge.

The spanish government were looking into it. Let the governments roll in the regulations. Private industry is to make profits. And AIPP is looking to do the same, under the guise of " working for the good of the people ".

Due diligence is good.
The truth is to find a fair and responsible way for these reports and for it not to be in a private profit making organisations hands. This is the recipe for problems.

The upshot is that AIPP do Due diligence.
Then company aBC do Due diligence reports
Then company DEF do it, and say there DD is better than the above etc etc etc

It has to be laid down with statute, what is DD. Who controls it. A central register of legal projects. The only people who grant this is the government themselves, they decide what projects are legal or not. They are the ones who should do this.

In my opinion.