Finally, a clear separation between legal and illegal intermediaries in the real estate market

Yesterday, a press conference was held by the members of the Association of Real Estate in the premises of the Chamber of Commerce FBiH.

The main topic was the Real Estate Brokerage Law in FBiH, and its full implementation started on April 1st of this year. Consistent enforcement of the law, along with inspections targeting illegal mediators, will contribute significantly to the regulation of the real estate market.

One of the key changes brought about by this law is a significant increase in security for all participants in the real estate market, primarily sellers and buyers.

With this law, a new legal framework has been established, setting the minimum mandatory conditions that all agencies must comply with in order to operate in the real estate market.

Firstly, there is the Register of Real Estate Brokers (Database registry), which currently has 100 entries. Furthermore, there are legal entities and trades that have complied with all the conditions for conducting the activities of a Real Estate agency in FBiH.

It is clear that all other legal entities engaged in this business and not registered in the Register are in direct conflict with the law, which imposes fines in the range of 2.500 to 30.000 KM for them.

On the other hand, the law clearly defines minimum conditions for the performance of activities by legal entities, serving as a protection mechanism for the users of their services.

First of all, there are:

1) mandatory signing of the mediation agreement,

2) possession of adequate office space suitable for office business,

3) mandatory licensing of agents who provide mediation services, who must be employed by a registered agency and finally,

4) mandatory professional liability insurance, which protects buyers and sellers in case of any irregularities.

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