More than 4 million transactions related to real estate are carried out annually in Russia. Approximately 3.5 million of them are made with the participation of realtors. The annual turnover is approximately 6 trillion rubles. The commission for this turnover is approximately 2%. There is a Federal Law “On Real Estate Activities in the Russian Federation”. It spells out what laws a realtor must know in order to carry out his activities reliably and safely.
Law on real estate activities
At the moment, no such law exists. His project was posted on the website of the Russian Guild of Realtors in 2011 for discussion, but to date the law has not been adopted by deputies of the State Duma. The law has not yet been introduced for consideration. The adoption of the law will establish uniform standards for regulating the activities of realtors throughout the Russian Federation and will ensure the further development of the real estate services market in the country.
The absence of a federal law to regulate the activities of realtors complicates its implementation and creates certain difficulties for both realtors and their clients. Therefore, at the moment, the adoption of a law is the main task of legislators in this area of legal relations.
Most of the services provided by realtors are of particular importance because they are associated with the transfer of rights to real estate. When concluding real estate transactions, fraud and deception occur, so the law must include rules to protect the rights of consumers of real estate services. At the same time, the law must take into account the requirements of realtors, most of which are related to their relationships with various government organizations and executive authorities.
To carry out their activities, realtors need accurate information about real estate objects and their owners. This information is provided by various officials upon request. Therefore, the law should include rules ensuring information interaction between realtors and local governments. Possession of complete and most accurate information about real estate, its owners and the rights of third parties to these objects contributes to the development of real estate activities and the protection of the rights and interests of consumers.
The adoption of the law “On real estate activities in the Russian Federation” should contribute to the creation of a unified approach to its legislative regulation throughout the country, make the management of real estate more efficient, balance the development of the primary and secondary real estate markets and ensure optimal interaction of all its professional participants.
The national standard for real estate activities is currently the standard of the voluntary certification system ROSS RU No. И046.04 РН00.
Basic provisions of the law on the activities of realtors
A realtor carries out his actions on the basis of a contract, as well as on the basis of services for performing real estate transactions in accordance with all the rules prescribed by law.
The law on real estate activities includes the following forms:
- independent activity of an agent
- activities of a legal entity
- Real estate activities are not taught in higher educational institutions or colleges. Valuable knowledge is obtained only in the process of work from your more experienced colleagues or from online courses.
Any realtor becomes either an agent or a broker. Moreover, the law for realtors, agents and brokers, as well as their responsibilities, are completely different.
- An agent must work with objects, take photographs, give consultations, know all the statistics, have an excellent understanding of the characteristics of the property, and make calculations.
- Broker , in turn, is an employee who has the right to conclude and sign an agreement. Manages the transaction and bears full responsibility for the actions of his agents. The owner or tenant enters into an agreement with the broker.
All realtors can also be divided into independent or individual agents and companies or legal entities.
An independent agent must:
- be registered as an individual entrepreneur;
- Work experience in this field must be at least three years.
A legal entity must:
- have several realtors on your staff;
- regulate and control the work of their realtors.
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The Law on Real Estate Activities in the Russian Federation contains a provision that realtors are required to enter into a special agreement on services and specify in it all the nuances of upcoming cooperation. The cost of this document is determined as a percentage of the total transaction amount or as a fixed amount (all individually for different organizations). You can also set the price based on a previously drawn up estimate.
In the case of the sale of real estate, a transfer of ownership occurs, which will be confirmed by the act of acceptance and delivery of the real estate. In the case of a lease, an agreement is concluded, after which the tenant begins to use the property, which is also confirmed by the acceptance certificate.
You will be interested to learn about clients in the article: Finding clients for a realtor
Advantages and disadvantages of the proposed draft law
This draft law defines the concepts of a realtor, real estate activity, real estate services, and lists the mandatory requirements for subjects of real estate activity and for concluded contracts. The rights and obligations of a realtor, his responsibilities are also indicated, and the procedure for regulating real estate activities by the state and self-regulatory associations of realtors is described.
The need to adopt the law is recognized by all participants in the Russian real estate market. However, many believe that the law on the activities of realtors should be improved. In the proposed draft, according to some experts, self-regulatory public organizations are given too many rights, which infringes on the rights of realtors - individuals and is contrary to the Constitution of the Russian Federation.
In addition, the return of licensing and license fees will lead to an increase in prices for realtor services, which will cause dissatisfaction among consumers (currently, the activities of a realtor do not require licensing). However, other experts consider the return of licensing for realtors to be necessary.
Thus, both positive and negative aspects can be identified in the proposed project. The positive aspects include:
- development of uniform standards for the activities of realtors;
- improving the quality of services provided by realtors;
- mandatory training for realtors and, accordingly, increasing their professional level;
- availability for realtors of information from various bodies and structures and, as a result, better protection of clients’ interests.
The negative aspects include:
- possible reduction in the number of agencies and their consolidation;
- increase in prices for realtor services;
- a return to a system of fees and charges, which could lead to corruption;
- weak protection of the interests of private realtors;
- lack of a clear definition of standards for self-regulatory organizations of realtors, including RGR.
Therefore, according to most experts, the draft law on the activities of realtors requires significant revision.
What do you need to know?
A realtor has the right to distribute data about a property only if he has a contract concluded with the owner.
This law also deals with property liability. If a realtor has violated certain rules, he will be held liable for this in the form of compensation for losses at the expense of the property of the individual entrepreneur or the legal entity with which the contract was concluded.
The activities of a realtor must be insured. Realtors are also required to insure their property liability.
Realtors can undergo certification, which can be obtained if they have a higher or secondary specialized education. Upon completion of the exams, a certificate will be issued that allows you to carry out real estate activities.
Realtor associations
In addition to state regulation, there is also public regulation in the Russian Federation. It refers to the creation of self-regulatory professional public associations (SPOO) by representatives of any specialty. Usually their rules are quite strict. Members of the SVOO are obliged to accept these rules (standards) of professional activity, prepared and approved in this association.
In the Russian Federation there are various associations of realtors - associations, guilds, unions, chambers. They are formed both at the federal and local levels. Often there are several different associations in a region. The documents regulating the activities of realtors and their relationships are standards adopted in all real estate associations.
The civilized market is distinguished by the presence of a single real estate network, all members of which adhere to the developed code of professional ethics. The reputation of realtors depends on their behavior in the market.
Regulation of professional relationships between realtors includes cooperation with government agencies, various mechanisms for resolving conflicts and disagreements between firms, organizing communication between specialists and sharing experience, establishing rules and standards of work between agents and firms. For this purpose, special committees and commissions on professional ethics are created. Consumer protection also falls within the scope of their activities.
Russian Guild of Realtors
To protect the professional interests of realtors, improve their professional level and the quality of the services they provide, realtors can establish public professional organizations. The main public organization of Russian realtors is the Russian Guild of Realtors (RGR).
The idea of its formation arose in 1992. The initiators of the creation of the RGR were not the state, but the realtors themselves. The reason was the need to define rules for working in the real estate market, and specialists were interested in matching the rules to their needs.
Over the past time, RGR has become the largest Russian non-profit organization, which unites approximately 1,500 companies, including 50 regional associations. The main task of the RGR is the development of a civilized real estate market in the Russian Federation. The organization seeks to achieve this by participating in the development of laws regulating the real estate market.
Currently, RGR is a self-regulatory organization of professionals in the Russian real estate market. The organization creates conditions for the professional activities of participants in this market, ensures compliance with the currently accepted standards of professional activity of realtors (members of the RGR), establishes rules and standards for conducting transactions with real estate, protects the interests of property owners and consumers of realtor services.
RGR strives to be as open as possible for its members - professionals working in the real estate market. Therefore, decisions are made collectively with active interaction with executive and legislative authorities. RGR strives to develop the Russian real estate market and provide comprehensive support to members of the organization.
Members of the RGR in their work are required to be guided by accepted professional standards and the Code of Ethics. A set of information resources has been created for members of the RGR, the main one being the Federal Register of certified real estate specialists of the RGR - agents and brokers.
RGR structure
The governing bodies are headed by the president, who is the highest official of the organization. First of all, he performs representative functions. In addition, the President carries out planning and general management of the activities of the RGR and the Executive Directorate. The congress elects the president.
The continuity of the presidential form of governance is ensured by a permanent advisory body - the Board. Its members include: the current president, the former president (ex-president), the future president (president-elect), the head of the Executive Directorate, the head of the personnel and strategic planning committee. All members of the Board are vice-presidents of the RGR. Meetings of the Management Board are held at least once a month.
The General Assembly (Congress) is the highest legislative body of the RGR. It has the right to make decisions on all issues of the organization's activities. The congress meets at least once a year. During the period between congresses, the supreme governing body is the National Council. He has the right to make decisions on any issues, except those that fall within the competence of the congress. Members of the National Council are full members of the organization. It is convened at least once every six months.
The audit commission exercises control over the financial and economic activities of the RGR. The Operational Management and Planning Council determines the current policy for the activities of professional committees, draws up plans for their activities and monitors their work. The Council includes vice-presidents, heads of professional committees, and delegated members of the National Council.
The Expert Council is an advisory body of the Operational Management and Planning Council. He forms the position of the RGR on strategic issues, performs expert assessments and prepares conclusions on projects submitted for consideration to the National Council and the Council of Expert Leadership and Planning. The members of the expert council are highly qualified specialists in various fields of activity. Meetings are held if necessary.
The functioning of the RGR, coordination of the work of professional committees and the provision of services to members of the RGR on various issues is provided by the Executive Directorate. Its head is the Executive Vice President, who is elected and approved by the National Council. The candidacy is presented by the President of the RGR.
Professional committees are advisory bodies on issues of professional activity of RGR members. The heads of the committees are members of the Operational Management and Planning Council. Meetings of professional committees are held if necessary.
The RGR includes committees in various areas of professional activity, such as: brokerage and agency activities; insurance of risks in the real estate market; real estate development and investment; securities and mortgage lending; property management; construction; assessment, etc.
Activities of the RGR
The RGR was conceived as an association of legal entities, the purpose of which was to solve specific problems in organizing the real estate market in the absence of laws and clear rules for professional participants. The development of the organization went in parallel with the development of the real estate market in the country, the increase in its participants, the growth of their professionalism and the accumulation of experience.
RGR grew and developed, expanding its spheres of influence. At the same time, the goals and objectives facing the organization were clarified. The result was the transformation of RGR into a serious non-profit organization that solves strategic problems in the development of the real estate market in the Russian Federation. In its work, the RGR interacts with legislative and executive authorities at both the federal and local levels, achieving the most favorable conditions for the dynamic and effective development of the real estate market. RGR provides comprehensive support to its members.
RGR has also actively participated in the structure of the international real estate market, having achieved a lot in this direction during its work. Now she is a core member of the International Federation of Real Estate (FIABCI), having also become one of the founders of the Russian branch of this organization. Membership in it means recognition of the Russian real estate market as part of the global market. A number of treaties and agreements were signed with various international organizations and institutions, and the exchange of information and the latest technologies was established.
The organization has established close relationships with participants in the real estate market in Russian regions and real estate agencies in Austria, Bulgaria, Great Britain, Hungary, Germany, Italy, Canada, Cyprus, Poland, Slovakia, France, and the Czech Republic. Regional seminars with the participation of US specialists are regularly held. Active international activities have allowed RGR to successfully integrate into the international community of professional participants in the real estate market.
Every year, RGR holds the largest events on the Russian real estate market - National Real Estate Congresses. In addition, the organization has a significant influence on the development of the training and certification system for realtors, employees of insurance companies, and also carries out certification of real estate market analysts.
RGR divisions and their own professional organizations of realtors are being created in the regions. This contributes to the growth of the quality of real estate services. During the operation of the real estate market, a certain number of companies with a good reputation have appeared. Many of them united into professional guilds. The Moscow Guild of Realtors (GRM) has appeared in Moscow. Members of associations, when working in companies, are subject to the laws of professional ethics.
RGR has become a strong and effective organization and assumes all functions for managing the real estate market and its development that the state agrees to provide to it.
The organization's website (www.rgr.ru) serves as an active marketing tool in promoting RGR services. Here you can get information about the organization’s services, its structure and charter, familiarize yourself with the current standards of professional activity and the realtor’s code of ethics, and learn about available vacancies in real estate companies. In addition, the site provides access to the Unified Information Database, which will undoubtedly provide significant assistance to both market specialists and their clients. The unified information base of the RGR contains complete information about the objects offered by the RGR member companies with display on a map, as well as analytics and much more.
The RGR Bulletin “Professional RGR” is a monthly digest of the most important events and activities related to the professional community of the real estate market for the past and current month. The purpose of issuing the newsletter is to inform the community about the most significant events in the market, about the progress of development of socio-economic processes, as well as about the events carried out by the RGR.
Draft Federal Law “On Real Estate Activities in the Russian Federation”
Draft federal law proposed on March 10, 2011 by the NP “Russian Guild of Realtors”
Draft Federal Law “On Real Estate Activities in the Russian Federation”
Chapter I. General provisions
Article 1. Scope of this Federal Law This Federal Law regulates relations related to the implementation by business entities of activities to provide services for the purposes of transactions with real estate (hereinafter referred to as real estate activities) by individuals and legal entities on the basis of contracts for the provision of services on a reimbursable basis.
Article 2. The purpose of this Federal Law The purpose of this Federal Law is to ensure a unified state policy in the field of regulation of real estate activities, protection of the rights and interests of subjects of real estate activities and consumers of real estate services when carrying out transactions with real estate.
Article 3. Basic concepts used in this Federal Law For the purposes of this Federal Law, the following basic concepts are used: Real estate activities - activities of business entities - legal entities and individual entrepreneurs, carried out on the basis of contracts for the provision of services on a reimbursable basis at the expense and in the interests of individuals and legal entities (hereinafter referred to as consumers) and related to the establishment, modification and termination of their rights to real estate. Realtor is a business entity - a legal entity or individual entrepreneur engaged in real estate activities. Consumer - an individual, legal entity or individual entrepreneur who has entered into an agreement with a realtor for the provision of real estate services. An agreement for the provision of real estate services is an agreement for the provision of services on a reimbursable basis between a consumer and a realtor, the subject of which is the provision of real estate services. National standards are requirements for the procedure for providing real estate services and carrying out real estate activities, developed by the National Association of SRO Realtors, which are mandatory for all realtors and real estate specialists - agents and brokers. Rules for real estate activities - requirements for the procedure for providing real estate services and carrying out real estate activities, developed by the SRO of realtors, which are mandatory for execution by members of this SRO. The rules of real estate activities cannot contradict the National Standards. Real estate specialist - broker - individual - employee or individual entrepreneur who is qualified as a broker in accordance with the requirements of the National Standard and has the right, on the basis of the Charter or power of attorney, on behalf of the Realtor to carry out actions to provide real estate services, including concluding an agreement with the Consumer. Real estate specialist - agent - individual - employee or individual entrepreneur, qualified as an agent in accordance with the requirements of the National Standard, who, on behalf of the Broker, provides real estate services under the agreement concluded with the Broker for the provision of real estate services. An accredited educational institution is an educational institution registered in the National Register of Accredited Educational Institutions that carries out the process of training and advanced training of real estate specialists - agents and brokers according to educational programs that meet the requirements of the National Standard. Certificate - documentary evidence confirming that a real estate specialist has passed a qualification exam for the qualifications “Agent” or “Broker”, issued by SRO realtors or organizations authorized by them. An accredited insurance organization is an insurance organization that has received, in accordance with the procedure established by the National Association of SRO of Realtors, the right to provide professional liability insurance for realtors in accordance with the requirements of this law. The Appeals Commission is a structural unit of the National Association of SRO Realtors, authorized to consider appeals against the actions of SRO Realtors and make decisions based on the results of the appeals. The disciplinary commission is a structural unit of the SRO of realtors, authorized to consider disputes between realtors, complaints and claims of consumers against realtors, and make decisions on them. The register of realtors and the register of certified specialists are databases containing information about the composition of SRO realtors and a personalized list of certified real estate specialists.
Article 4. Concept of real estate services In this law, real estate services are understood as a set of actions aimed at preparing and supporting the transfer of ownership or use of real estate, namely: • provision of services to the consumer for the sale or transfer of lease (rental) of real estate, which he has the right to dispose legally; • provision of services to the consumer for the acquisition of real estate belonging to third parties into his ownership or use; • provision of consulting services, services for studying market conditions, other paid services accompanying the civil circulation of real estate; provision of services to the consumer for the management of real estate owned by him (?). Real estate services are provided in accordance with a fee-based agreement concluded with the consumer.
Article 5. Subjects of real estate activities Subjects of real estate activities are legal entities and individual entrepreneurs without forming a legal entity, who are members of a self-regulatory organization of realtors, carry out their activities and insure their professional liability in accordance with the requirements of this Federal Law (hereinafter referred to as realtors). The provision of services specified in Article 4 of this Federal Law by other persons who are not subjects of real estate activities is not permitted. A person providing real estate services in violation of this Federal Law bears the responsibility provided for by law.
Article 6. Requirements for subjects of real estate activities Legal entities and individual entrepreneurs carrying out their activities without forming a legal entity must be registered in the manner established on the territory of the Russian Federation and meet the following requirements: • be a member of a self-regulatory organization of realtors and comply with the requirements of federal standards for real estate activities , approved by the National Association of Self-Regulatory Organizations of Realtors and the rules of real estate activities established by the self-regulatory organization of realtors, of which he is a member; have a qualified staff of certified real estate specialists; • own or use non-residential premises, the rights to which are formalized in the manner prescribed by law, providing conditions for servicing consumers in accordance with the requirements of the National Standards and Rules of Real Estate Activity Realtors are required to comply with the rules of business and professional ethics approved by the National Association of Self-Regulatory Organizations of Realtors.
Article 7. Content of the real estate service The content of the real estate service is: Study and analysis of real estate market conditions, determination of the recommended price of real estate; Ensuring the safety of documents received from the consumer to prepare the transaction; Ensuring the protection of consumer interests by clarifying rights and obligations, as well as the legal consequences of transactions; Advertising real estate as a product under the conditions stipulated by the concluded agreement for the provision of real estate services; Selection of real estate objects that meet the criteria established by the Consumer; Obtaining from state registration authorities of rights to real estate, other state, municipal and other bodies the necessary information about real estate and rights to it; Expert assessment of the content of title and other documents necessary for making transactions with real estate and issuing recommendations for bringing them to the requirements of current legislation; Providing to the Consumer information that has become known to the realtor, which can significantly (within the scope of the assignment established for the realtor under the contract) influence the consumer’s decision to enter into a real estate transaction; Organization and implementation of business contacts and negotiations with third parties, taking into account the conditions stipulated by the concluded agreements; Drawing up contracts for the alienation of real estate, necessary agreements, amendments, acts and other documents necessary for concluding these contracts; Assisting consumers in making secure payments for transactions and submitting documents for state registration of rights to real estate and transactions with it;
Article 8. Mandatory requirements for an agreement for the provision of real estate services. An agreement for the provision of real estate services is an agreement for the provision of services for a fee and is concluded in simple written form. The contract for the provision of services must contain: the parties to the contract; subject of the contract; rights and obligations of the parties; the amount or procedure for determining the realtor’s monetary remuneration for the provision of services; procedure for payment of remuneration; contract time; terms of termination of the contract; liability of the parties; the procedure for reporting by the realtor to the consumer on the progress of the service; a list of documents submitted to the realtor at the time of signing the Agreement; information on compulsory civil liability insurance of a realtor in accordance with this Federal Law; the name of the self-regulatory organization of realtors, of which the realtor is a member, and the location of this organization; an indication of the real estate standards that will be applied when providing the service; settlement of disputes; legal addresses and details of the parties. National standards for real estate activities may establish other mandatory requirements for the content of an agreement for the provision of real estate services. An agreement for the provision of real estate services to a consumer for the sale of real estate owned by him must contain the procedure for determining the sale price of this property, a description of its characteristics and address information that allows it to be unambiguously identified. An agreement for the provision of real estate services to consumers in relation to any real estate must contain an accurate indication of it, as well as a description of this real estate. The fact of provision of real estate services is confirmed by an act of performance of the service, containing confirmation of the fulfillment by the realtor of the terms of the agreement, signed by the consumer of the service and the realtor with whom the consumer entered into this agreement.
Chapter II. Conditions for real estate activities
Article 9. Responsibilities and rights of the subject of real estate activities (realtor) A realtor is obliged to: • be a member of one of the self-regulatory organizations of realtors at the place of tax registration; • comply with the requirements of this Federal Law, other federal laws and other regulatory legal acts of the Russian Federation, national standards approved by the National Association of SRO Realtors when carrying out real estate activities; • comply with the rules for carrying out real estate activities established by the self-regulatory organization of realtors; • ensure that realtor employees comply with the rules of business and professional ethics established by the National Association of Self-Regulatory Organizations of Realtors (hereinafter referred to as the rules of business and professional ethics); — pay fees established by the self-regulatory organization of realtors and the National Association of SRO of Realtors; • inform the consumer about the impossibility of providing real estate services due to the occurrence of circumstances that impede its provision; • ensure the safety of documents received from the consumer during the provision of the service; provide the consumer with information about membership in a self-regulatory organization of realtors; provide an insurance policy upon the consumer’s request; • provide, at the consumer's request, documents confirming the qualifications of specialists appointed by the realtor to provide services under the contract; • not to disclose confidential information received from the consumer during the provision of the service, except in cases provided for by the legislation of the Russian Federation; • in cases provided for by the legislation of the Russian Federation, provide copies of contracts for the provision of real estate services, documents and reports on the progress of the provision of this service or the information contained therein to law enforcement, judicial, and other authorized government bodies upon their request; • at the consumer's request, provide an extract from the register of members of the self-regulatory organization of realtors, of which he is a member, certified by a self-regulatory organization of realtors; • all employees of a real estate entity involved in the process of providing real estate services must be trained and certified according to programs and methods developed and approved by the National Association of Self-Regulatory Organizations of Realtors. The realtor has the right: • to receive from the authorities carrying out state registration of rights to real estate and transactions with it, information about registered rights to real estate; • receive information from the internal affairs bodies in the amount of information regarding registration of citizens at the place of residence and stay and deregistration from it; • receive from housing and communal services authorities and organizations operating residential and non-residential facilities information in the amount of information included in the house books maintained by these authorities; • receive information from social security authorities to the extent necessary to establish the nature and content of rights to real estate of persons belonging to special categories of citizens (minor citizens and other persons recognized in the prescribed manner as limited in legal capacity or completely incompetent, disabled people, pensioners) ; • receive information from civil registration authorities to the extent of information included in civil registration registers; The conditions for providing this information are: the existence of an agreement for the provision of real estate services to the consumer for the requested real estate property; an extract from the register of the realtor’s membership in a self-regulatory organization of realtors; a realtor's request containing the amount of requested information, completed in the prescribed manner; • a document confirming the rights of citizens to the property about which information is requested.
Article 10. Responsibility of the realtor The realtor is responsible to the consumer for causing damage through his culpable actions (inaction) as a result of violations of the requirements of federal laws, National standards and rules of real estate activities. The limit of the realtor's liability to the consumer is limited to the amount of the realtor's remuneration under the contract for the provision of services, unless otherwise established by a court decision.
Article 11. Responsibilities and rights of the consumer of real estate services Consumers of real estate services are obliged to: • provide the realtor with complete and reliable information and documents on real estate objects, the rights to them and their rights holders, as well as report existing or past disputes regarding rights to these objects and claims to these rights of third parties. Consumers of real estate services have the right: to freely choose a realtor to provide the service; check the realtor's credentials; receive from the realtor all the necessary information about the progress of the service; • contact the claims and dispute resolution bodies of the self-regulatory organization of realtors, and other public organizations regarding violations of their rights as consumers of real estate services. The contract for the provision of services may provide for the obligation of the consumer not to enter into similar contracts with other realtors, or to refrain from carrying out independent activities similar to the activities that form the subject of the contract for the provision of real estate services.
Article 12. Standards for real estate activities Standards for real estate activities determine the requirements for the procedure for providing services and carrying out real estate activities. National standards for real estate activities are developed by the National Association of SRO Realtors and approved by the authorized government body. National standards are mandatory for use by professional participants in the real estate market when carrying out real estate activities. The approved National Standards of Real Estate Activities are subject to publication by the authorized federal body that carries out the functions of legal regulation of real estate activities, in the manner established by the Government of the Russian Federation, and posting on the official website of the authorized federal body that carries out the functions of legal regulation of real estate activities, and on website of the National Association of SRO Realtors on the Internet. The rules for real estate activities are developed and approved by the SRO of realtors and cannot contradict the National Standards for Real Estate Activity.
Article 13. Professional training of real estate specialists Professional training of real estate specialists is carried out by accredited educational institutions specially created for this purpose, or on the basis of faculties (divisions, departments) of higher public or private educational institutions that have the right to provide such training in accordance with the legislation of the Russian Federation. Federation.
Article 14. Certification of real estate specialists Certification is verification and confirmation of the level of knowledge and qualifications of a specialist. Certification is carried out on a regular basis by SRO realtors or organizations authorized by them in accordance with training programs for specialists approved by the National Association of SRO Realtors, National Standards and Rules of Real Estate Activity. Based on the results of the certification, the qualification “Real Estate Specialist - Agent” or “Real Estate Specialist - Broker” is assigned and a qualification certificate is issued. The validity period of the qualification certificate is established by the SRO of realtors and cannot exceed three years. The decision of the certification commission can be appealed within a month from the date of its delivery to the appeal commission. The regulations on the procedure for certification of specialists are approved by the National Association of SROs. Providing real estate services to a consumer by a specialist who has not passed certification is not permitted.
Article 15. Qualification of real estate specialists Specialists acting on behalf of the Realtor when providing real estate services under an agreement with the Consumer are subject to mandatory certification to receive the qualification “Real Estate Specialist - Broker”. Specialists performing actions to provide elements of real estate services on behalf of the Broker are subject to mandatory certification to receive the qualification “Real Estate Specialist - Agent”.
Chapter III. Regulation of real estate activities
Article 16. Self-regulation of the activities of professional participants in the real estate market Self-regulation of the professional activities of realtors is carried out on the terms of their association in self-regulatory organizations of realtors (hereinafter SRO), created for the purpose of regulating and monitoring the activities of professional participants in the real estate market who are their members, as well as for the purpose of representation and protection interests of SRO members. Realtors are required to be members of the SRO of realtors. Before joining an SRO, a realtor does not have the right to engage in professional activities in the provision of real estate services. A realtor can be a member of only one self-regulatory organization at the place of tax registration.
Article 17. Structure of self-regulatory organizations of realtors In order to improve the quality of services, form common approaches to the implementation of real estate activities, ensure coordination of the activities of self-regulatory organizations, as well as interaction of self-regulatory organizations of realtors with federal government bodies, government bodies of constituent entities of the Russian Federation, local government bodies and consumers of services in the field of the real estate market, the organization of self-regulation of realtors is carried out on a two-level principle. The structure of self-regulation of realtor organizations includes self-regulatory organizations of realtors, created and operating, as a rule, on the territory of one constituent entity of the Russian Federation or several adjacent constituent entities of the Russian Federation, and the National Association of Self-Regulatory Organizations of Realtors.
Article 18. State regulation of real estate activities and the activities of self-regulatory organizations of realtors State regulation of real estate activities and the activities of self-regulatory organizations of realtors is carried out by federal executive authorities authorized by the Government of the Russian Federation (hereinafter referred to as the authorized federal body). The authorized federal body exercises state control over the activities of the National Association of Self-Regulatory Organizations and carries out the functions of developing state policy and legal regulation in the field of professional real estate activities. The powers, procedure for the creation and activities of the federal body - the body for regulating real estate activities are determined by the Government of the Russian Federation.
Article 19. National Association of Self-Regulatory Organizations of Realtors The National Association of Self-Regulatory Organizations of Realtors ensures the maintenance of the Unified State Register of Self-Regulatory Organizations of Realtors, the Unified Register of Realtors and the Unified Register of Real Estate Specialists, supervises the implementation by self-regulatory organizations of realtors of the requirements of this Federal Law, coordinates the activities of SROs and their regional associations (associations, unions), develops and improves National Standards of Real Estate Activity and Norms of Business and Professional Ethics. The National Association of SRO Realtors is created as a non-profit organization that unites all non-profit realtors that have received the status of SRO Realtors in accordance with this federal law. Membership of SRO realtors in the National Association of SROs is mandatory. Regulation of real estate activities in terms of developing and improving the rules of real estate activities, admission and exclusion of members, control over the implementation of real estate activities by SRO members is carried out directly by the self-regulatory organization of realtors.
Article 20. Self-regulatory organizations of realtors The activities of self-regulatory organizations are regulated by this Federal Law, as well as the legislation of the Russian Federation on self-regulatory organizations. A non-profit organization acquires the status of a self-regulatory organization provided that at least 100 members unite within the non-profit organization, as well as provided that the non-profit organization complies with other requirements established by the regulatory legal acts of the authorized federal executive body and the legislation of the Russian Federation on self-regulatory organizations. A non-profit organization acquires the status of a self-regulatory organization from the date of entering information about the non-profit organization into the State Register of Self-Regulatory Organizations of Realtors. The procedure for entering information about a non-profit organization into the State Register of Self-Regulatory Organizations of Realtors is regulated by the legislation of the Russian Federation on self-regulatory organizations. Information about a non-profit organization may be excluded from the State Register of Self-Regulatory Organizations of Realtors by the authorized federal executive body on the grounds and in the manner provided for by the legislation on self-regulatory organizations.
Article 21. Membership in the SRO of realtors A realtor must be a member of the SRO of realtors operating in the territory in which the place of his registration as a realtor for tax purposes belongs. To become a member of a self-regulatory organization, a realtor must submit: 1) an application for membership in a self-regulatory organization; 2) notarized copies of constituent documents; 3) a notarized copy of the realtor’s registration certificate with the tax authority; 4) an extract from the Unified State Register of Legal Entities; 5) professional liability insurance policy in accordance with the requirements of the National Standards of Real Estate Activities and this Federal Law; 6) certified copies of internal regulatory documents; 7) other documents provided for by the charter of the self-regulatory organization, the rules of the self-regulatory organization. The collegial governing body of a self-regulatory organization makes a decision on admitting a realtor to a self-regulatory organization within no more than thirty days from the date of receipt of an application for membership in a self-regulatory organization and provision of the necessary documents specified in this article. The grounds for refusal to accept a realtor as a member of the SRO of realtors are: failure to provide the documents provided for in this article; non-compliance with the requirements approved by the SRO of realtors for membership in the SRO of realtors, and the conditions of membership; • previous exclusion from the SRO of realtors for violation of the requirements of this Federal Law, the regulatory legal acts of the Russian Federation adopted in accordance with it and national standards of real estate activities, if less than three years have passed from the date of exclusion from members of the SRO of realtors. A person who is denied admission to SRO realtors has the right to appeal such refusal to the Appeal Commission, and in case of disagreement with its decision, to the arbitration court. The realtor's membership in the SRO of realtors is terminated by the collegial governing body of the SRO of realtors on the basis of: the realtor's application to withdraw from membership in the SRO of realtors; • approval by the collegial management body of the SRO of realtors of a decision to exclude a realtor from members of the SRO of realtors in connection with his violation of the requirements of this Federal Law, other federal laws and other regulatory legal acts of the Russian Federation, national standards and rules of real estate activity, as well as the norms of business and professional ethics .
Article 22. Basic rights and obligations of SRO of realtors SRO of realtors has the right to: • represent the interests of its members in their relations with federal government bodies, government bodies of constituent entities of the Russian Federation, local governments, as well as with international professional organizations of realtors: • challenge in court in accordance with the procedure, acts of federal government bodies, government bodies of constituent entities of the Russian Federation, local government bodies and actions (inaction) of these bodies that violate the rights and legitimate interests of all or part of their members. SRO of realtors is obliged to: • comply with the requirements of this Federal Law, other federal laws and other regulatory legal acts of the Russian Federation; • monitor compliance by its members with the requirements of this Federal Law, other federal laws and other regulatory legal acts of the Russian Federation, national standards for real estate activities, rules for real estate activities, as well as business and professional ethics; • apply disciplinary measures provided for by this Federal Law and internal documents of SRO realtors in relation to its members; refuse to admit realtors to SRO membership in the cases established by this Federal Law; • exclude realtors from members of the SRO on the grounds provided for by this Federal Law and the internal documents of the SRO of realtors, for violation of the requirements of this Federal Law, other federal laws and other regulatory legal acts of the Russian Federation, national standards of real estate activities, as well as business and professional ethics; • maintain a register of members of SRO realtors and provide the information contained in this register to interested parties in the manner established by the authorized federal body that carries out the functions of legal regulation of real estate activities; • organize professional training for real estate specialists.
Article 23. The procedure for including a non-profit organization in the unified National Register of SRO Realtors A non-profit organization that meets the requirements of this Federal Law has the right to submit to the National Association of SRO Realtors or the body authorized by it that exercises the functions of supervising the activities of SRO Realtors, an application for its inclusion in the unified state register of SRO realtors. The National Association of SRO Realtors or the body authorized by it, exercising the functions of supervising the activities of SRO Realtors, makes a decision on inclusion or refusal to include a non-profit organization in the unified state register of SRO Realtors within seven days from the date of submission of the following documents by this non-profit organization: application for inclusion in the unified state register of SRO realtors; notarized copies of constituent documents; • a notarized copy of the certificate of registration of a non-profit organization with the tax authority; • copies of regulations on its management bodies, on the structural unit that exercises control over the real estate activities of members of such an organization, on the disciplinary committee, certified by a non-profit organization; copies of the rules for real estate activities certified by a non-profit organization; a copy of the register of members of a non-profit organization certified by a non-profit organization. The decision of the authorized body exercising the functions of supervising the activities of SRO realtors on the inclusion or refusal to include a non-profit organization in the unified state register of SRO realtors is sent in writing to this non-profit organization within seven days from the date of the relevant decision. The decision of the authorized body exercising the functions of supervising the activities of SRO realtors to refuse to include a non-profit organization in the unified state register of SRO realtors can be made on the following grounds: the non-profit organization does not meet one of the requirements provided for by this Federal Law; • the non-profit organization did not submit the documents provided for in this article or submitted documents containing false information. A decision to refuse to include a non-profit organization in the unified state register of SRO realtors can be appealed by this non-profit organization to an arbitration court. The exclusion of SRO realtors from the unified state register of SRO realtors is carried out by the authorized body exercising the functions of supervising the activities of SRO realtors, if this organization has submitted an application for its exclusion from the specified register, or in the event of liquidation of a non-profit organization that has the status of SRO realtors. SRO realtors may be excluded from the unified state register of SRO realtors in the event of gross and repeated violations of this Federal Law by decision of an arbitration court. In this case, the authorized body exercising the functions of supervising the activities of SRO realtors applies to the arbitration court with an application to exclude SRO realtors from the unified state register of realtors and SRO realtors. The grounds for filing an appeal to the arbitration court are: • a discrepancy between the SRO of realtors identified as a result of the inspection and one of the requirements provided for by this Federal Law; • failure of the SRO of realtors to comply with the requirements to eliminate the violations identified by the authorized body exercising the functions of supervising the activities of the SRO of realtors and the violations specified in the order within the time frame established by it.
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Moscow Realtors Guild
The Moscow Realtors Guild is an association of real estate companies in the capital. The purpose of the organization is to develop a civilized real estate market, as well as to assist small and medium-sized real estate agencies in carrying out their professional activities. To increase the profitability of the real estate business and improve the convenience of work, special services are being created.
The State Russian Museum appeared in October 2009, and the active involvement of companies in it began in 2010. Its basis was the Club of Real Estate Agency Managers (KRAN). It was formed as a kind of discussion platform for discussing the most pressing problems of the real estate market and proposing solutions to important and urgent issues in order to convey them to the Moscow Association of Realtors.
Despite the growing popularity of KRAN in the capital and the increase in the number of active members, the leadership of the Moscow Association of Realtors rejected the possibility of cooperation with the club. But since realtors felt the need to create a professional association capable of satisfying their current interests, the Moscow Guild of Realtors appeared.
The members of the SRM are real estate companies, for whom it exists. One of the main ideas behind the creation of the GRM is the opportunity for specialists to jointly receive information, as well as independently create services that optimize the activities of agencies. Such services will make information available to each agency and improve the quality of services provided to clients of real estate companies.
The priorities of the State Russian Real Estate include the development and actual implementation of professional realtor standards in the real estate market, ensuring the quality of real estate services, as well as building a system of legal barriers to the work of unscrupulous realtors and protecting consumers from them. Another priority is the creation of a multi-listing system - it is necessary as the best mechanism for the sale of real estate.
The partners of the State Russian Museum are various public and commercial organizations that provide assistance to guild members on taxation, financial and legal issues, offering various advanced training courses. Information about this can be found on the State Russian Museum website (www.grmos.ru).
This site is useful for both realtors and consumers of real estate services, as it provides the public with information about the main trends in the capital’s real estate market, allows them to get acquainted with expert assessments, and provides answers to a wide range of questions on the real estate market. The official press organ of the State Russian Museum is the newspaper "Metra".
Licensing and compulsory liability insurance may be introduced for realtors
The Public Chamber of the Russian Federation proposed that the government consider the possibility of introducing licensing or certification of real estate activities. This is reported by the official website of the Federal Notary Chamber.
Social activists complain that due to the lack of proper legal regulation of the activities of realtors, the number of scammers in the sphere of residential real estate turnover has been growing for many years. “According to the Financial University under the Government of the Russian Federation, last year alone, more than 7,100 crimes related to real estate transactions were committed in the country, and only 1/5 of all cases resulted in convictions. The main reason for such sad statistics often lies in the fact that the simple written form of transactions common today makes it possible to implement a wide variety of fraudulent schemes, including difficult to detect and very “subtle” ones. By turning to unscrupulous or unprofessional intermediaries and concluding transactions in simple written form, people lose their only home,” the OP of the Russian Federation notes.
In this regard, the RF OP proposed that the government consider the possibility of conducting an analysis of the feasibility of developing and implementing a legislative act regulating real estate activities. This law should provide, among other things:
- consolidation of the legal status of a realtor, the concept of “realtor”, “real estate activity”, “real estate organization”, as well as the rights and obligations of such persons;
- mandatory licensing or certification of the activities of a realtor and (or) real estate organization based on the professional standard “Real Estate Specialist”, approved by Order of the Ministry of Labor dated September 10, 2019 No. 611;
- creation of an official state register of persons carrying out real estate activities in accordance with the law;
- participation of a notary in real estate transactions concluded with the participation of a realtor;
- compulsory realtor civil liability insurance;
- property liability of a realtor for improper provision of real estate services;
- tax benefits, benefits and guarantees for persons engaged in real estate activities during the transition period;
- principles and forms of interaction (including electronic) between realtors and government agencies and local governments on issues within the competence of realtors;
- legal liability of persons for the illegal provision of real estate services to the population.
The Public Board also sent its proposals to the State Duma, the Ministry of Internal Affairs and the Russian Guild of Realtors.
