The Prime Minister of Ukraine, Yulia Svyrydenko, has instructed the relevant state authorities to explore the possibility of establishing clear rules for the operation of the real estate services market. This decision was made in response to a petition that recently garnered the necessary number of votes for consideration on the Cabinet of Ministers’ website.
This is reported by Finway
Current State of the Real Estate Services Market
Currently, the activities of real estate agencies and realtors in Ukraine operate without established special legal regulation. Realtors act within the framework of general legislation regarding economic activities, registering themselves as business entities in accordance with the law “On State Registration of Legal Entities, Individual Entrepreneurs, and Public Formations.” All taxes are paid in accordance with the Tax Code of Ukraine, and conducting real estate activities without proper registration is illegal.
Advantages and Risks of Legislative Regulation
In response to the petition, the Prime Minister emphasized that in European Union countries, the real estate market is regulated at the national level, with requirements for the professional competence of realtors and detailed rules for market operation established by EU member states. At the same time, the EU sets general frameworks through directives and regulations concerning consumer rights protection, financial matters, sustainable development, and the overall functioning of the market.
“The real estate market in the EU is largely regulated at the level of national legislation of EU member states, as the regulation of professional competence issues for realtors and detailed market rules is carried out at the state level. At the same time, the EU establishes general frameworks through directives and regulations related to consumer rights protection, financing, sustainability, and the overall functioning of the market,” the Prime Minister added.
Svyrydenko noted that legislative regulation of realtor activities in Ukraine could enhance transparency and competition in the market, protect consumer rights, increase budget revenues, and professionalize the real estate services sector. However, the State Property Fund believes that such a step could lead to an increase in the bureaucratic apparatus and administrative costs, as well as raise the expenses of the real estate business, which would affect service costs for clients.
The Prime Minister emphasized that under martial law, the priority areas for state funding remain security, defense, healthcare, infrastructure recovery, and economic support. However, considering the scale of housing operations, the Cabinet supports the need to streamline the real estate services market in light of modern economic challenges and strategic state interests.
Svyrydenko reported that the State Property Fund, along with the Ministry of Economy, the Ministry of Finance, the Ministry of Justice, and the Ministry of Development, has been tasked with developing a comprehensive regulation of this issue and informing the public about the decisions made.
It is worth noting that the petition, which received public support, included proposals for mandatory registration of realtors as individual entrepreneurs or legal entities, establishing minimum qualification and certification requirements, mandatory presence of a contract or written confirmation of cooperation, prohibiting the collection of commissions without client requests, and introducing administrative liability for violations of the new rules.