Bill Reforming V.I. Real Estate Commission Advances with Strong Support

In a significant move to enhance regulations in the Virgin Islands’ real estate sector, Senator Novelle Francis Jr. has introduced Bill 35-0117, aimed at reforming the territory’s Real Estate Commission. This follows closely on the heels of his earlier successful introduction of Bill 35-0193, which sought to regulate the local real estate industry further.

Bill 35-0117 proposes amendments to Title 27, Virgin Islands Code, Chapter 15, Sections 421a and 422. These amendments address the qualifications, term limits, and duties of the Real Estate Commission members. Key among the proposed changes is the addition of a licensed property manager to the Commission, a move Senator Francis highlighted while seeking support from the Committee on Rules and Judiciary.

If passed, the bill will mandate geographic representation on the Commission, with three members residing on St. Croix, three on St. Thomas, and one on St. John. Additionally, it sets term limits, restricting members to no more than two consecutive four-year terms. The bill also allows for members to receive per diem expenses and empowers the Commission to appoint a secretary and a treasurer.

The proposed legislation quickly garnered support during its initial committee review on Thursday. Laurent Alfred, the current chair of the Real Estate Commission, and the Department of Licensing and Consumer Affairs (DLCA) both endorsed the bill. Horace Graham, DLCA assistant commissioner, praised the bill as a “progressive step forward for this industry and our community.”

A noteworthy provision in the bill requires that no more than four of the seven Commission members hold a Virgin Islands real estate broker, sales associate, or property management license. According to Mr. Graham, this ensures that decisions are informed by substantial industry expertise while allowing the Commission to effectively represent various stakeholder interests, including real estate personnel, property owners, and prospective buyers.

Mr. Graham emphasized the bill’s aim for “equitable geographic representation,” which he believes will address unique real estate issues across the Virgin Islands. He also noted that term limits would promote fresh ideas and prevent stagnation, fostering an environment of transparency, accountability, and responsiveness.

The Real Estate Commission fully supports the proposed changes, with Mr. Alfred testifying that term limits would ensure a healthy turnover in Commission membership.

Committee members echoed the support from invited testifiers. Senator Milton Potter described the bill’s provisions as “prudent upgrades” for the real estate industry. Senator Marise James, experienced in real estate law, saw no drawbacks and encouraged Senator Francis to address real estate fraud in future legislation. Senator Diane Capehart agreed, stating that the legislation offers transparency and parity.

The bill will now proceed to an upcoming legislative session, where it will be voted on by all fifteen senators.