The debate on the Law on Mediation in Real Estate Transactions and Leasing which should regulate that area is beginning in the Parliament.
In the future, real estate agencies will have to enter into a contract with ordering parties; these are the buyers, sellers, tenants and landlords of apartments and houses. In addition, only agencies and companies which are registered in the Registry of the Ministry of Trade will be able to mediate in real estate transactions, and real estate agents will have to have a high school degree and will have to pass a professional exam. The mediators will be under obligation to have contracts with insurance companies, and these insurance policies will protect the ordering parties if the agencies do not fulfill their obligations.
These are just some of the innovations foreseen in the Law on Mediation in Real Estate Transactions and Leasing which will be discussed by the members of the Parliament on Tuesday. According to the Ministry of Trade’s plan, around 1000 agencies and 2000 agents should receive a license within 18 months. According to the Ministry, this Law will finally introduce the European standards in the reals estate market.
All those involved in real estate transactions should open their eyes, especially the buyers – stated Želјko Stojanović, Senior Adviser at the Ministry. The mediator has the right to an agency commission, and the purchase price should be paid by the buyer directly to the seller’s account. Thus the agency cannot deceive the customer; however, it can inflict damage to him through improper access to the ownership records or if it does not warn the buyer that the property is mortgaged… In these cases, the seller can claim damages. Also, if the seller paid an agency for advertising and this is regulated by a contract and the agency fails to comply with that contract, the seller may be covered by the insurance policy. The minimum insurance amount is 15000 euros in RSD equivalent per insurance case; that is a total amount of 45000 euros for all damages claims in an insurance year.
Insufficient legal mediators
According to the estimates of the “Real Estate Cluster” association, the total annual turnover in the real estate market in Serbia is worth 3 billion euros. Of these, only one billion is made through the mediation of about 500 registered legal mediators, the rest falls under the grey economy thereby damaging the country by unpaid taxes in an amount ranging between 600 million and 2 billion RSD.
The Registry of mediators, which will be kept by the Ministry of Trade, will be available to all interested citizens over the Internet. In order to register in the Registry, the mediator will have to have one employee who has passed the professional exam, a valid contract of insurance and an adequate office. It is prohibited for any legal or natural person to mediate if they are not registered in the Registry of mediators.
