Government Proposal Bans Double Commission for Real Estate Agents
The Ministry of Development and Technology has unveiled a draft bill aimed at curbing unethical real estate practices, including a ban on charging commissions to both parties in a single transaction....
The Ministry of Development and Technology has unveiled a draft bill aimed at curbing unethical real estate practices, including a ban on charging commissions to both parties in a single transaction.
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New Restrictions on Agency Commissions
A key proposal in the government’s draft amendment to the Real Estate Management Act prohibits real estate agents from collecting fees from both the buyer and the seller in the same transaction. This measure is intended to eliminate conflicts of interest and prevent agents from forcing brokerage agreements onto uninterested parties.
Enhanced Professional Standards and Accountability
The legislation introduces a mandatory scope of duties for agents, regardless of their specific contracts. Agents will be strictly required to secure a formal agreement with a property owner before listing any property, and all public advertisements must clearly identify that they are being managed by a professional intermediary.
Stronger Oversight and Penalties
The Trade Inspection is set to receive expanded powers to monitor agent compliance, including verifying contract transparency and the legality of fee structures. The draft introduces financial penalties and the authority to issue cease-and-desist orders, which may escalate to a total ban on professional practice for repeat offenders.