If the Verkhovna Rada interferes with the work of realtors, it could drive the market even further into the shadows, according to an expert.
15 January 19:41
Attempts by the Verkhovna Rada to strictly regulate the Ukrainian real estate market could drive it further into the shadows. This was stated by Olena Haidamaha, president of the Association of Real Estate Professionals, in an interview with the YouTube channel "Komersant Ukrainian".
In particular, she criticized the idea of limiting the percentage of real estate agent commissions by law.
“Let’s imagine a house located 60 km from Kyiv. If the state wants real estate services for the sale of such a property to cost 2% of the value of the house, which is 6-8 thousand conventional units, then I don’t know of any real estate agent who would travel 60 kilometers from Kyiv and sell such a property for that percentage. In other words, this market will go even further underground,” she says.
Haidamaka recalled that at one time, members of parliament tried to regulate the work of realtors. However, due to the start of a full-scale invasion, the relevant bill was never voted on.
Now, in her opinion, the authorities have returned to the idea of regulating the real estate market, not because of their interest in the quality of services, but because of the corruption component.
“Monetization. There is an opportunity to earn money… And why not earn extra money in a market that, in their view, is in the shadows,” she added.
At the same time, the expert emphasizes that instead of creating corruption barriers, the state should focus on targeted control of “black” players.
“We need to deal with those realtors who are really in the shadows, who don’t pay taxes. And who conduct their business quietly… Maybe make test purchases. Well, somehow we need to expose such people,” says Haidamaka.
Today, she emphasizes, the legal market is based not on laws, but on humanity and reputation.
“First, we work to ensure that the client is satisfied. Second, to ensure that the deal goes through. And only third, for our commissions, which are justified by what we do. Our clients see what they are paying for,” she concluded.
As is known, after the adoption of the basic law “On the Fundamentals of Housing Policy” (No. 12377), the Verkhovna Rada plans to legislatively regulate the work of realtors. To this end, a separate working group will be created to develop rules for the real estate market.
The impetus for the innovations was a petition that received the necessary number of votes, demanding mandatory registration of realtors, written contracts with clients, and liability for violations of the rules. The authors of the petition also pointed to cases of commissions being charged at 50-100% of the rent or 2-5% of the purchase price of the property without any real involvement of intermediaries.
