Title:
FACTORS AFFECTING FORMALIZATION INITIATIVE OF REAL ESTATE AGENTS IN TANZANIA

Authors:
Agness Raphael Mbumilla, Premilla Padayachee, Paul Muinde Maweu and Olta Myslimi, China

Abstract:
The study was about factors affecting formalization initiative of real estate in Tanzania. The specific objectives were to: examine the influence of a policy on formalization initiative of real estate agents, determine the effect of income flow on formalization initiative of real estate agents and analyze the effects of an agent’s association on formalization initiative of real estate agents in Tanzania. Descriptive research design was employed and utilized Mixed Method Approach (MMA). The population was 110 individuals where a sample of 86 respondents were chosen. Simple random sampling technique was used to select a sample of real estate agents to participate in the study while a census was used to select Ministry staff, local government authorities and subject matter experts. Questionnaire and interview were used to collect data. The study found that policy and agents association would highly influence formalization initiative of real estate agents. On the other hand, income flow would influence formalization initiative of real estate agents in a low manner. The correlation analysis found that policy development, income flow and agents association had coefficient of 0.782, 0.267 and 0.678 respectively. The regression analysis found that agent`s associations would impact real estate agents’ formalization by 48.2%, policy would impact real estate agents’ formalization by 70.1% while income flow would impact real estate agent’s formalization by 5%. The study recommends that the government should come up with policy to guide the real estate agents, the real estate agent should organize themselves and register an organization to be able to channel their issues through the organization and that the government should come up with means to regulate income from the business of real estate agents.