Real estate company representatives say that the role of real estate agents is not clearly defined in the draft law on the activity of real estate agents, which has been submitted for public consultation. In reality, contracts are signed between real estate agents and developers, not individual agents, and the agency bears fiscal and legal responsibility for its agents. As in most European countries, the agent has to work through an agency or broker, and excluding this obligation can lead to chaos and lack of control, say members of real estate companies, IPN reports.

The representative of the Union of Real Estate Agents, Andrian Toderascu, believes that a clearer regulation of the commission contract is needed. The Union proposes the model of a commission-based collaboration contract, with no obligation for agents to withhold social security contributions. It also argues that, in practice, agencies are unable to deduct VAT and that agents – natural persons – end up bearing a double tax burden. A simpler and fairer system is needed.

Representatives of real estate agents have asked whether the draft legislation could introduce the notion of “trainee agent”, who could work for 3 months under the supervision of a real estate agent, because until he gets the training and the real estate agent certificate, he should know whether he is in the activity or not.

Eugen Turcan, president of APAIM, noted that a certified real estate agent is obliged when signing the contract to indicate where to address the client in case the conditions of the contract are not met.

The participants in the debate also said that there is a need to provide for a special sanction for those who practice the activity of illicit real estate agent.

The draft law on the activity of real estate agents was drafted by a group of MPs from the “Action and Solidarity Party” faction and aims to ensure transparency and consumer protection in the context of the development of the real estate market in Moldova.

“Both we and the industry want more transparency and fairness. We don’t want to bureaucratize the business. It is clear that it is a certification process, a withdrawal process, but we do not want to add more elements or barriers,” emphasized the chairman of the Committee on Economy, Budget and Finance, Radu Marian.

Clear conditions for access to the profession will be laid down in the legislation. In particular, real estate agents will be obliged to obtain a certificate of professional competence, which will be issued by an accredited educational institution. To this end, the “Real Estate Agents” module will be created, integrated into an information system managed by the Agency for Geodesy, Cartography and Cadastre. In order to receive the real estate agent certificate, the person will have to meet several cumulative conditions, – higher education or special secondary education, no unblemished criminal record for property or economic crimes.

At the same time, estate agents will be obliged to conclude written contracts with their clients, specifying the rights and obligations of both parties. To ensure consumers’ rights are respected, unfair commercial practices such as misleading advertising or hidden commissions will be banned. The document also establishes the public entities empowered to supervise and control the activity of real estate agents. These are the State Tax Service, the National Center for Personal Data Protection, the Competition Council and the State Inspectorate for Supervision of Non-Food Products and Consumer Protection.

The authors also propose a mechanism to prevent violations, as well as sanctions for real estate agents who do not comply with the legislation. At the same time, it is proposed to add a provision to the Code of Contraventions to cover breaches of obligations relating to the exercise of the activity of real estate agent. For example, carrying out this activity without concluding a written contract with the client will be punishable by a fine of up to 20 000 lei for individuals. And legal entities could be fined from 20 000 lei up to 40 000 lei, with the deprivation of the right to carry out real estate brokerage activities for a period of half a year to one year.