Strategy, tactics, perspectives, expectations
Hungarian Real Estate Council (MIT)
From now on, the concept of Hungarian National Association of the Professional Organisations of the Real Estate Sector (MIT) will cover the cooperation system of the national chamber and, in further perspective (with the reorganization and the completion of the network), the regional chambers and the professional sections. The Hungarian National Association of the Professional Organisations of the Real Estate Sector (MIT) wishes to work in the form of a union until the creation of the Hungarian Real Estate Chamber. The Hungarian National Association of the Professional Organisations of the Real Estate Sector is founded by the Founding Organisations (our members) in a way that they maintain their organisational autonomy to carry out their existing projects. They participate in the life of the organization as equal partners, each with 3 delegates who make up the General Assembly. MIT is directed by a 11-member Presidency, all of them presidents of organisations, with a Secretary General, three standing committees and numerous experts – presidents of the member organisations – who are permanent guest participants of the Presidency sessions.
Having been established in 2005, during its operation of over a decade the Hungarian Property Council has justified that intention of the founding associations (whether they represent a membership involved in real estate brokerage, real estate and facility management, persons working in condominium management or in housing cooperatives), that the organization set up at their joint initiative should become an entity suitable for playing a leading role of the property trade. Known as MIT for its Hungarian abbreviation, the Council represents the majority of the trade, maintains tight relations with associations outside the organization and has a significant role within the Budapest Chamber of Commerce and Industry and the National Association of Entrepreneurs. Government agencies request its opinion in the preparation and opining of laws and statutes on the regulation of activities in the real property sector.
MIT considers it as its mission to adopt and incorporate in the national system the property regulation standards accomplished in the EU member states, so that the competence of property-related trades in the Eastern-Central European region should become equivalent with that of EU member states, and that compatibility with the EU requirements and regulations can be guaranteed in the regulation of the professional activities of the national economies.
MIT especially focuses on the development of micro and small enterprises performing property-related activities, and for that purpose, in the framework of the National Association of Entrepreneurs it provides consulting services to Hungarian regions on the dissemination of the cutting edge construction technologies at an international level and the implementation of innovations. Within that, it attaches special importance to the reduction of the environmental load of climate impacts and properties, and to promote the paradigm shifts necessary for developing a mindset that ensures energy efficiency.
In its operation, the Hungarian Property Council implements its mission to ensure that the citizens’ opinions are heard in the development of the national housing policy affecting the entire civil society and in the formulation of the objectives of the government concerning urban construction, urban planning and property development, which determine their way and quality of life. As a main objective, it intends to ensure the implementation of “livable cities”, “smart” properties based on the “EU sustainable development” and “ecological footprint” guidelines. To accomplish that, for prestige purposes and as a reference, MIT has established in Hungary the First Hungarian Rental Apartment Construction Cluster, which highly focuses on the optimisation of the costs incurred in the operation of the property in the preparation of new projects involving apartments designed to be sold or rented, including the property repair and renewal works that become necessary during their life cycle.
One of the important tasks of MIT is to preserve the technical condition of the Hungarian heritage of art monuments and historical houses and to ensure the preservation of the special features of their era when renewal works are performed. Furthermore, it is a priority for MIT to ensure that in property development and renewal such building parts should also be developed that host community functions matching the needs of the citizens. A case in point is the building renewal project in Szigetszentmiklós, which is characterized by energy efficiency and environmental awareness, while ensuring the common rooms necessary for the community programmes of the citizens and the facilities for sports and recreational activities.
To summarize the mission of MIT, it is to enable the integration of Hungarian property policy into the society of EU citizens as an objective of property policy, in such a manner that the housing quality of Hungarian citizens can converge to the level of more countries of the Union.
Strategic program of the MIT
Phase I. – Functions and responsibilities of the MIT
- OBJECTIVES AND MEANS (their elaboration can constitute a task)
- STRATEGIC PROGRAMME (we have the outline)
Phase II. – Accomplishment
- OPERATIONAL PROGRAMMES (we can already start considering them)
- MANAGEMENT PLAN (based on the previous)
- Functions and responsibilities of the MIT
Interpretation: Under MIT we understand the pre-organisations of the national and the regional chambers and of the professional sections.
– Vindication of interests: the MIT, in accordance with the interests of society, represents and protects the interests of the Hungarian real estate sector both nationally and internationally in the following areas:
a.) Real estate brokerage;
c.) Real estate appraisal;
d.) Management, operation, administration of communities, management of city-planning, Facility Management.
– municipal administration: within its competences it carries out administrative tasks of real estate sector activities.
– Professional Partnership: along with the professional opinion of the chamber, in technical questions it supports offering impartial and responsible information for society at large.
IMPORTANT: The relationship between MIT and the Hungarian society is described in “Mission”. Real vindication of the interests can be achieved by means of a strong autonomy of government. In the relationship of the professional sector with society MIT tries to assure that the points of view conceived with responsibility by the organisation are a trustworthy source of information for each and every Hungarian citizen, as well as political leaders.
VISION – EXPECTATIONS
The fulfilment of the expectations of the Hungarian National Association of the Professional Organisations of the Real Estate Sector marks the following vision of the future:
– After the quick reorganization of the MIT, the chamber will gradually take over the competences necessary for the regulation of the professional activities, the evaluation and issuing of licenses and for the control of the legality of the activities from the government organisations. The resources necessary for the accomplishment of the assumed responsibilities will be provided to the chamber from the central budget;
– the chamber will vindicate the interests of its members in the regulation of the real estate activities, in the control of the whole procedure of the activities and by improving the working conditions for tasks carried out for advisable and appropriate honoraria;
– with its interest representation and communication activities it creates, consolidates and by eliminating the practices so far rightfully criticized it also restores the professional and social prestige of the Hungarian real estate sector;
– in harmony with the sustainable development requirements it tries to be an inevitable actor in forming public opinion on professional development;
– as a partner involved in the higher education reform it promotes a match between university curricula and real labour market demands;
– by means of its methodical system of procedures it creates an appropriate legal and professional environment to restore and to reinforce confidence in legal operation.
IMPORTANT: Meeting the prioritised expectations mentioned in the introduction will on the one hand constitute an important indicator of the effectiveness of the Real Estate Chamber\’s operation. On the other hand, in order to meet these expectations, it is necessary that our collaborating members and other organisations are ready to make commitments and to cooperate, and that competences so far in the hands of public administration bodies are given over to a self-regulatory body.
The mission of the Hungarian National Association of the Professional Organisations of the Real Estate Sector:
MIT\’s priority objective is to support and protect the market of those real estate professionals who are its members, and to guarantee that customers receive a fair service. That is to say, it has been basically created with an aim of market protection, which is achieved through the elements of the following set of objectives:
– Analysing the methods of the real estate sector, both national and international, joint action and elaborating procedures respecting the professional autonomy of the sections.
– Analysing the instruments and the effects of real estate brokerage.
– Creating, maintaining and developing the correct operation, prestige and acknowledgement of the national real estate sector.
– Creating and maintaining regular good relations with the actors of the Hungarian economy, with the representative bodies of related professions, with the press, government actors, the authorities related to the profession and other organizations.
– Establishing, maintaining and developing international relations, promoting exchange of experience, improving knowledge.
– Supporting the continuous professional development of association members, by means of occasional training courses and organizing conferences.
– Professional Representation of the members in Hungary and abroad.
– Effective Support of the development of the Hungarian economy by its operation.
In order to achieve these objectives it is committed to organize
– seminars or workshops,
– presentation of goods and services,
– professional training courses,
– club days,
– other events
In addition to the IT systems used by the members it also provides
– a communication system,
– a mailing list (agenda),
– a website.
In the form of a Code of Ethics it regulates the forms of behaviour to follow, both among members and with the clients.
In order to accomplish of the objectives mentioned above:
The Parliament – following national traditions and the practice of developed democracies – will have to create a law that acknowledges the importance of the activities of real estate agents, developers, appraisers and managers (administrators of communities, city-planning managers, real estate appraisers, real estate constructors, valuators of property) who are key actors from the point of view of the formation, the development and the protection of the surroundings, and supports the administrative autonomy necessary for respecting the professional and ethical principles.
The law\’s objective must be the transfer of the right to issue licenses and to control the brokerage, construction and expert activities in all segments of the real estate sector from public administration to a democratically elected public body, which operates with the autonomy of the sector.
We prefer a professional chamber, based on individual membership, with functions of public corporation, since it is characterized by the following thing:
– the activities are carried out by professionals (brokerage, construction, consultancy, valuation, management, development), the results are determined by their personal skills and capabilities and of their work;
– it is necessary to maintain a relation of confidence between the client and professional in charge;
– these activities affect considerable security (both personal and that of the property), environmental issues, ethical, economic and cultural values.
These characteristics are very typical of the tasks of brokers/agents, constructors, consultants, appraisers, managers, operators and experts, therefore we suggested that in case of the professions mentioned above, the corresponding legal act allows to carry out professional activities under special conditions and requirements, and sets an obligation of registration.
The determination of the set of conditions, as well as the evaluation of the exercise rights and the registry are competence of the chamber by law, along with the control of compliance with ethical norms by all those who carry out these activities. In our opinion this last one can only be carried out efficiently if those who have the rights are members of the chamber, that is to say, this would require membership.
To be member of the chamber is a subjective right, that is, one who satisfies the legal requirements of membership must be admitted.
A further objective of the law should be the protection of public interest and real estate professionals from low quality or non-ethical activities. In order to achieve this, the chamber will have to have the right to create a code of ethics and a system of real estate tariffs.
The law would have to give the chamber the possibility to protect and to represent the professional interests of its members in legislation before the legal, administrative and judicial bodies.
A considerable part of the law will have to specify the regulation of the chamber, its legal control, methods, self regulation, assuming that administrative autonomy – being based on the professional and local knowledge of the people in charge of decision making – is more efficient than state regulation.
The transitional provisions of the law will have to recognize – on entry into force – the previous entry into the chamber registry of those that are not authorized for it (graduated between 1989 and 1995), real estate diplomas and expert licences – under appropriate professional and ethical control – and consequently, the exercise of these rights as acquired rights for a further 360 days. Also it will have to arrange that for the establishment of the rights besides the ones mentioned in previous legal acts, from the entry into force of the law, the competence will lie with the Real Estate Chamber.
In summary: we know that getting closer to the European Community facilitates more and more the creation of this law among members of parliament, the ever wider social acceptance of the representation of the interests of the sector by a chamber, as well as the guarantee of getting the economic support necessary for dealing with the competences taken over from public admistration, not excluding the possibility that, with appropriate legislation, the chamber created this way gets to be a net contributor.
Thus, after our administrative renewal assembly, we consider a landmark in the accomplishment of our objectives the contracts concluded at different government levels, the cooperation documents signed with related professions, but we consider the most important of all the Strategic Cooperation launched with VOSZ and the construction and construction materials industry.
Of the latter we hope first of all the creation of a feasible concept of strategic development for the sector in the interest of society, and as a result, the creation of jobs for many people, and for real estate actors, a professional chamber based on individual membership.
Budapest, 29 december 2012
Dr. Sztranyak Jozsef
President of the MIT