Ukrainians will not be able without a broker to rent or sell a property: what’s cooking deputies

Ukrainians want to be required to make all the information about housing in the private database

To sell or rent an apartment or house will become more difficult. In Parliament want all operations on any real estate held through intermediaries – brokers or realtors. This is stated in bill No. 3618. If the project is accepted, even self-host the announcement of the surrender of the apartment will be illegal. That was according to the law, will have to obtain a passport of the apartment, to make it into a special database and get a unique number. Only then you can place an ad stating the passport numbers of apartments in the database.

The Ukrainians will not be able to dispose of the property

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The real estate market in the shade and it should bring to light, according to the authors of the draft law “On realtor activity”. Therefore deputies suggest to create an organization through which will pass all real estate transactions: the National Federation of specialists in the field of real estate activities. Is a non-governmental organization and it has not yet been created.

MPs want houses, apartments and land before selling or leasing to get a passport. This passport will be registered in a Single database. And to make it want almost 30 features: personal information of the owner before the mention of the object in the media or the ads on the online sites.

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Without passport number real estate will not sell nor rent, nor just send. Even in the announcement of the sale, or simply the delivery of housing will need to provide the passport number of the object.

It all comes down to the fact that the property owner will need to contact the broker, to have made an object in the database. In addition to it, to make the information in the database can “other authorized persons”, the draft States. Ukrainians themselves will only be able to browse the database objects, which will be publicly available on the Internet. According to the project, even the notary will not be able to execute documents without the passport numbers. And any transaction in circumvention of the base will be considered invalid.

It is unlikely that the introduction of the data in this database will be a free service. But owning this database will already mentioned non-state Federation.

In addition to this base organization will be the owner and register of realtors. In fact, the Federation will determine to whom to issue a permit for the work a realtor, and someone – no. And if the realtor is no evidence of the broker or of the certificate of realtor, it will be fined on 8500-17 000 UAH. For repeated violation – a fine of 17 000-34 000 UAH with the confiscation of income received.

Today, according to various estimates, through realtors is 25-30% of transactions in the real estate market. Often the services of a realtor is not needed. For example, the sale or lease of land. The project will be obliged to address to the expert of the Federation to obtain the passport number of the object.

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Perhaps the project in some way will lead the property market out of the shadows, but will lead to losses for property owners, buyers and tenants, says Alexander Chmielewski, candidate of economic Sciences.

“The mandatory participation of realtors will mean that when drawing up the contract of sale people will have to pay a Commission, usually about 5%. It’s a few thousand dollars. You will have to pay Commission to a realtor and signing a lease. For realtors, such a law may be beneficial. The demand for their services will grow. Certification and examination will not be serious problems. As the experience of certification of other types of activities, the exams are simple and there may be a person familiar with the basics of the law in their field. However, there are compulsory training and exams will have to pay”, – says Alexander Khmelevsky.

Why realtors are against this project

This bill is not about realtors, said Edward brazas, Chairman of the Committee on information technology, Analytics and services of the Association of realtors of Ukraine.

“This bill is about the scheme the real estate market, about how from every citizen who is trying to hold certain real estate transactions, receive money to private entities,” – said the expert.

But this scheme want to make the hands of the realtors, because the bill would force all estate agents to become members of the National Federation of realtors.

“This Federation gives all rights to judge, to make judgments, to punish, to expel from the profession. That is all in the hands of one structure and state involvement not foreseen. But the most interesting is the only information base, which should definitely settle the estate, if the intention is something to do with it: to rent, to sell or donate, inherit and so on. In any real estate transactions the citizen must apply to the competent person to create a passport object”, – said Brazas.

Фото: А. Гончаров

Photo: A. Goncharov

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One of the authors of the bill – Dmitry Nataluha says that homeowners will be able to enter data into the database. However, the law doesn’t say that. The draft mentions only the broker and the authorised person. Base free only for viewing information.

“Most importantly, it creates a monopoly. You receive a place where every citizen must come and pay money. Thus any benefit base does not create. Because there is a Registry of property rights, is the Civil code, which prescribes how to pass the real estate transaction. Is all spelled out. This working system I want to attach a fifth wheel, which is not necessary, but must be paid for. That’s the whole point of the law,” – said Brazas.

In some industries, the realtors are not needed at all. For example, in land transactions, realtors do not participate. Also in small towns and villages, there are no real estate agents – there’s too little money, no business and nothing to work with. Realtors is a business that exists in the regional centres and resort towns.

“If we are artificially making the parties to any transaction, the realtors will be the face and hand of a corrupt scheme for every citizen. We do not need. Real estate service is the same service as any other. It cannot be imposed if it is not needed – the citizen can for her not to go,” – said Brazas.

The law is unlikely to work, sure realtors. The legislation already stipulates that it is impossible to rent an apartment without a lease, but people do it anyway. Another ban isn’t going to change. Also, with the work of a realtor – it needs to be registered as owner and subject of primary financial monitoring, to submit reports on the signed lease agreements to the Tax.

“Few countries have a special regulation of real estate activities. With such success it is possible to make a separate law about plumbers or hairdressers. The project openly violated the Constitution and other laws. If you look at other countries, they move to simplify the business. If you don’t need the service, then you can not use it. Due to competition for customers increases the quality of the services of a realtor because he is motivated by the interest of the customer,” says Arthur Pilipchuk, General Director of the company VALION real estate group.

As the bill violates the Constitution

Notary chamber of Ukraine has made a legal assessment of the draft law. Its provisions can lead to raiding in a national scale, come to the conclusion in the chamber of notaries.

The draft makes the obligatory participation of realtors in real estate transactions. It violates the Constitution and the Civil code of Ukraine, because it limits the ownership right of the person and weakens his position.

“The bill does not contain exceptions for transactions with a lifetime maintenance, exchange, mortgage, lease land shares for individual sales, for small contracts, etc., that is, the requirement of mandatory involvement of a realtor applies even to those operations, the essence of which does not require the involvement of additional mediators. Thus, even family members can’t without the involvement of a realtor to exchange among themselves of which they owned property,” – noted in the Notary chamber of Ukraine.

And the establishment of a private Single information registry with complete information about real estate provides opportunities for fraud, noted in the organization. Especially that the draft law does not spelled out the role of the state in regulating the sphere.

“Today there are enough specialized registers (State register of proprietary rights to immovable property, State land cadastre, etc.), including information about real estate, so duplicate it is not only unnecessary, but extremely dangerous!” – declare in the chamber of notaries of Ukraine.

Earlier, the experts also explained to the website “Today”, why after quarantine in Ukraine will be more protracted.

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