Realtors' NGOs ask Ukraine's leadership to support draft law on realtors' operations drawn up by MP Prasolov

Kyiv, April 4 (Interfax-Ukraine) – Some nongovernmental organizations of realtors have asked the leadership of Ukraine to back a draft law on realtors' operations, authored by Regions Party faction MP Ihor Prasolov, the president of the Union of Realtors of Ukraine, Oleksandr Rubanov said at a press conference at Interfax-Ukraine on Tuesday.

"Realtors' organizations, after studying a draft law on specifics of doing realtors' business, came to the conclusion that the draft law foreseeing the state regulation of realtors' operation cannot be adopted, as it is not in line with a program of economic reforms of the Ukrainian president in part of deregulation of business development and traditional practice of functioning of nongovernmental organizations in the real estate area," reads an address of realtors.

"We believe that it is better to support draft law No. 8781 registered by MP Prasolov, taking into account the remarks and proposals stipulated in the conclusions of the chief research and expert department of the Ukrainian parliament," Rubanov added.

The address was signed by the heads of the Union of Realtors of Ukraine, the Realtors' Chamber of Ukraine, FIABCI-Ukraine, the Union of Advisors, the Realtors' Chamber in Ternopil, Association of Professional Managers, the Realtors' Chamber in Crimea, Zaporizhia Regional Association of Realtors, Donetsk Regional Realtors' Chamber, the Realtors' Chamber in Lviv and the Realtors' Chamber in Zhytomyr.

Rubanov said that the draft law drawn up by the Economic Development and Trade Ministry foresees strict regulations, while nongovernmental organizations are made insignificant.

"The only positive point about the ministry's draft is that it is written in detail and is built logically. It is deeper than other draft laws. I suppose this is its only merit," he added.

He also said that the ministry's draft law sets the upper limit for paying for realtors' services at 3%, and this is interference in business processes.

"It would not encourage either clients or realtors to work legally," he said.

Earlier, the head of the national council of the Realtors' Chamber of Ukraine, Oleksandr Bondarenko, said that when the Economic Development and Trade Ministry drew up a draft law on specifics of the realtors' business, they completely changed the concept proposed by Prasolov in a draft law registered in the parliament on July 7, 2011.

In June 2007 the Ukrainian parliament did not support draft law No. 3499 on realtors' operations, the major goal of which was to legislatively regulate realtors' activity on Ukraine's real estate market. The bill was authored by Prasolov.

On July 7, 2011, Prasolov registered draft law No. 8781 on realtors' operations, which was mainly focused on the protection of the rights of realty service consumers.

Ukrainian President Viktor Yanukovych in November 2011 ordered Ukrainian Premier Mykola Azarov by January 30, 2012 to submit to parliament a draft law on realtors' operations. The Economic Development and Trade Ministry drew up a draft law on specifics of doing realtors' operations, which has not been registered in parliament. The ministry proposed to legislate realtor activities, providing the State Property Fund (SPF) with the function of issuing certificates to real estate companies. Under the bill, realtors have to have a university degree, obtain basic training or take an internship at a realtor agency for a year, pass a qualification exam, receive a realtor certificate and register in the state register of realtors. The bill also foresees that the SPF should maintain the state register of realtors, which includes data on individuals and legal entities that have certificates.

The document also foresees the possibility of realtors creating self-regulatory organizations, which should have at least 250 realtors, 90% of whom should perform real estate activities.