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I recently engaged in a constructive dialogue with Dr. Rachael Mirembe, a distinguished figure within Uganda's real estate landscape. Our conversation stemmed from a past encounter on Twitter Spaces, during which we held differing opinions on the practice of real estate agents charging search fees. My intention of reaching out to her was to bridge our perspectives and establish common ground.

Initially, Dr. Mirembe strongly supported the elimination of search fees within the Ugandan real estate market, citing her experiences in South Africa where such fees were not customary. Her argument was centered on the belief that an agent's income should be derived solely from commissions earned after a successful sale and not from search fees.

However, our recent conversation led us to a shared understanding. We both recognized the necessity of search fees to deter time-consuming property tours by speculators and casual real estate enthusiasts. Nevertheless, the challenge remained: how to address those unscrupulous agents who misuse search fees by not rendering any services worth the fees.

Our deliberations led us to the consensus that the most effective remedy for search fee misuse lies in the implementation of legislation to regulate the activities and licensing of real estate agencies. In the meantime, we resolved to raise our voices in condemnation of those who exploit search fees only for personal gain and not the buyers benefit.

Dr. Rachael also raised another pertinent issue concerning the adoption of appointment-based property viewings by local brokers. Drawing from her experiences in South Africa, she suggested that property viewings should be scheduled at specific times, allowing agents to wait at the property for potential buyers within designated hours on specific days. This approach, she argued, would be more efficient than ferrying multiple buyers to the same property on different days, and that this method of work would partly make search fees irrelevant.

However, we both acknowledged that our local real estate market had evolved organically, and thus appointment-based viewings ( also known as open houses) were not part of its historical growth. Our market's history differs significantly from that of South Africa in this regard.

In situations where the agent is not receiving any commission from the landlord or property owner, the imposition of search fees on the property buyer can become the sole means for the agent to generate income from the transaction. This scenario is particularly prevalent among buyer's agents who exclusively serve property buyers and typically do not receive or need any compensation from landlords or from the sellers.

Furthermore, there are instances where the expenses incurred in showing a property outweigh the commission earned from its sale or rent. For instance, when dealing with properties in very remote locations especially agricultural land, the costs associated with transporting potential buyers and the logistical challenges plus the time involved in the journey can become burdensome for the real estate agent. In such cases, it becomes reasonable to request the client to cover these expenses, especially if they are genuinely committed to the process.

In these specific scenarios, charging a fee for search services can be deemed necessary and justifiable to ensure that the agent's time and expertise are adequately compensated. Nevertheless, as an overarching principle, maintaining transparency and fostering clear communication with clients remains indispensable for building trust and upholding ethical standards.