The Bill Regulating the Real Estate Business Needs Revision

14 april 2016

Real estate services are long overdue for more regulation. However, the bill on mediation (agency) business in the real estate market that has been submitted for discussion does not solve any of the key problems typical of the sector. That is the conclusion drawn by the Analytical Center's experts.

“The bill requires that all realtors be members of self-regulating organizations, which is going to drive up their rates as they will have to pay membership and certification fees, and the bill does not offer any provisions for regulating the price of realtors’ services and fees,” says Marina Labozina, the Head of the Department for Legal Expertise of the Analytical Center.

At the same time the bill does not impose any restrictions at all on who can pursue the real estate business. The bill offers no incentives for people to seek the services of professional realtors. Any appreciation of prices caused by bringing realtors together into self-regulating organizations, especially now during an economic downturn, will push people to seek the help of persons that are not members of SROs. That will only make the problem of incompetent realtors worse, experts believe.