The government is taking on the real estate market. There will be penalties and new obligations
The Ministry of Development and Technology has prepared a draft of changes for the real estate market. One of the proposals assumes a ban on charging commission from both the buyer and the seller.
The government plans to introduce new regulations regarding the activities of real estate agents. The assumptions of the draft amendment to the Real Estate Management Act were published in the list of legislative works. The aim of the changes is to increase the transparency of services and better protect customers participating in real estate purchase and sale transactions.
As the Ministry of Development and Technology emphasizes, real estate transactions are often associated with one of the most important financial decisions in life. Therefore, cooperation with an intermediary should be more transparent and the scope of his duties clearly defined.
Real estate agents with new responsibilities
The project provides for the creation of a catalog of activities for which the intermediary will be responsible regardless of the provisions of the concluded contract. This means that the minimum scope of services will be defined by law and cannot be arbitrarily limited.
According to the ministry, the solution is intended to increase the transparency of the relationship between the client and the intermediary and ensure greater predictability of the services provided. Customers should know exactly what they can expect from a person acting as an intermediary in the sale or purchase of real estate.
The end of commissions from both sides of the transaction?
One of the most important proposals is the ban on collecting remuneration from both the buyer and the seller. The Ministry argues that such a solution will reduce the risk of conflict of interest and strengthen the role of the intermediary as a representative of the party with which it concluded the contract.
The new regulations are also intended to counteract practices of putting pressure on people who are not interested in concluding an intermediation agreement but are nevertheless persuaded to sign it.
The changes will also apply to announcements
The project also envisages tightening the rules for publishing real estate offers. The agent will not be able to post an advertisement without first signing an agreement with the property owner.
Any offer published by an intermediary will also need to be clearly marked as an advertisement from a professional intermediary. This is intended to increase market transparency and reduce customer doubts.
The Trade Inspection will receive new powers
The ministry also wants to expand the competences of the Trade Inspection. The inspections are to include, among others: method of informing clients about the terms of cooperation, transparency of contracts, implementation of statutory obligations and compliance with the prohibition of charging commissions from both parties to the same transaction.
The bill also provides for financial penalties for entities violating the regulations. In the most serious cases, it will be possible to issue an order to stop illegal practices, or even a ban on running a real estate agency business.
