Proposed Reforms to End Controversial Real Estate Broker Practices

The Ministry of Finance and Economy has introduced draft legislation (UD424) aimed at protecting property clients by banning dual commissions and mandating transparency in brokerage contracts and property advertising standards.

End of Double Commission Fees

The proposed legislation mandates that a real estate broker may represent only one party to a transaction and is prohibited from collecting commissions from both the buyer and seller or both the landlord and tenant. This change aims to curb the practice of forcing brokerage contracts upon parties who do not wish to utilize professional services.

Ending Mandatory Signing Before Viewing

The project addresses the common complaint where prospective buyers or tenants are forced to sign a brokerage contract and commit to paying a commission simply to view a property they found independently. The new regulations seek to strictly limit such practices.

Minimum Statutory Service Standards

Currently, service scopes depend heavily on individual contracts. The draft law introduces a mandatory catalog of minimum duties that brokers must perform regardless of the specific contract, ensuring clients understand what services they are paying for.

Regulating Property Listings

The Ministry plans to prohibit brokers from posting listings without a formal contract with the property owner to prevent the unauthorized copying of offers and the proliferation of conflicting information. Furthermore, all broker-posted listings must be clearly labeled so that potential clients can distinguish between private owners and real estate agencies.

Expanded Supervisory Oversight

The Trade Inspection (Inspekcja Handlowa) will gain extended powers to monitor brokerage compliance. This includes overseeing disclosure practices, mandatory service performance, and the prohibition of dual commissions, with the authority to issue penalties and mandates to cease illegal activities.

Legislative Timeline

These provisions are currently in the early stages of the legislative process under draft number UD424. The government schedule anticipates adoption by the Council of Ministers in the third quarter of 2026 before the bill proceeds to Parliament.