Intermediaries of real estate transactions will have to be insured against civil liability.

In the future, real estate brokers will have to insure civil liability for their activities, informs the Ministry of Economy. On August 1, 2020, the Law on the Operation of Real Estate Transaction Intermediaries came into force, which provides for regulating the legal basis of the professional activity of real estate transaction intermediaries and ensuring the supervision of the professional activity of these persons in order to prevent the legalization of proceeds of crime, the financing of terrorism and proliferation, and to promote a stable, safe and providing reliable mediation services. On the other hand, at the meeting on September 29 of this year, the Cabinet of Ministers approved the procedure for the civil liability insurance of real estate brokers and the registration fee for the inclusion of a person in the register of real estate brokers. The law provides that the real estate broker must insure the civil liability of his professional activity. The “Civil liability insurance regulations of the professional activities of real estate transaction brokers” approved by the Cabinet of Ministers provide for the minimum annual liability limit of the insurance contract and the mandatory risks that are insured by the real estate transaction broker. The minimum annual liability limit of the civil liability insurance contract of the real estate transaction intermediary is set at EUR 50,000. The civil liability insurance contract can be concluded individually between one real estate transaction intermediary (in the case of a natural person) and the insurer, and it can also be collective (in the case of a legal entity or partnership), including several real estate transaction intermediaries at the same time. Mandatory risks that the real estate transaction intermediary must insure are: the direct risk of financial losses in connection with direct financial expenses that occurred as a result of the activity or inaction of the real estate transaction intermediary; the risk of third-party claim investigation, expertise, legal assistance, as well as litigation expenses related to expenses incurred in cases of third-party claims; • the risk of rescue expenses in connection with rescue expenses arising from urgent measures to prevent or reduce the amount of damage caused to third parties. At the same time, the law provides that starting from July 1, 2021, mediation services may be provided only by persons included in the Register of Real Estate Transaction Intermediaries. The register is publicly available on the website of the Ministry of Economy. The approved Rules of the Cabinet of Ministers on the registration fee and annual supervision fee of a real estate transaction intermediary provide that the real estate transaction intermediary, in order to be registered in the register, will have to pay the initial registration fee for the inclusion of a person in the register and thereafter the annual supervision fee of the real estate transaction intermediary. The registration fee for including a person in the register of real estate transaction intermediaries is set at 40 euros. Real estate brokers included in the register will henceforth pay the annual real estate broker supervision fee – EUR 40. See the full version of the article here!