Bulgarian real estate agents call for urgently needed regulation

Certain people and companies operate illegally as property mediators without complying with standards or paying taxes

A conference on self-regulation versus EU directives was held in Brussels on January 30. It was held by the European Confederation of Real Estate Agents CEI with the active participation of the Austrian industry union OVI and Vienna-based Standards Institute.

Discussions on the problems of market regulation focused on the market's relation to consumers' rights and supply of higher quality services at competitive prices.

Belgium, Austria, Spain, France and the Slovak Republic are the EU countries with the highest degree of real estate regulation, enacted via various legislative bills and ordinances on services offered by agents. These stipulate - among other factors - who is deemed suitable for various activities, the requirements and the registration procedure.

Bulgaria falls into the opposite category - operating largely by market self-regulation - according to Valentin Suikov, chair of the international real estate federation FIABCI-Bulgaria. He explained that this is characteristic of the old EU countries that function on the Anglo-Saxon pattern, a model noted for its liberal economic approach. These include countries like Germany, Netherlands, the UK and the Scandinavian states, which have a different culture and traditions. Valentin Suikov comments that Bulgaria deviates far from the proper business ethics associated with this model. For example, certain people and companies operate illegally as property mediators without complying with standards or paying taxes. Clients receive poor service as a consequence, risking their money and property.

FIABCI-Bulgaria and NRPA (National Real Property Association) strongly support introducing a registration regime of brokers. However, they are adamant that this should not involve paying taxes and fees or the issuing of licences, which might entail bribery and other malpractices. The industry's unions insist on a registration regime, overseen by themselves, as the minimum measure in Bulgaria.

It is premature to speak of effective market self-regulation, as in other West European countries. Granting more rights to the industry's unions is a kind of self-regulation that can only be successfully implemented with the help of the Government because imposing sanctions on illegally operating entities lies within its remit. However, the government fails to do this at present, Suikov said. He cited some of the problems faced by the Bulgarian property market: illegal brokers, disloyal clients unwilling to pay commission fees after agents have done their work, as well as the intentional concealment of properties' flaws by rendering false or distorted information to customers.

Text source: propertywisebularia

Image source: Mirela

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