In brief

• Ukraine's parliament has received a bill that would criminalise real estate brokerage without agent status or a written contract.
• Fines range from UAH 17,000 to 68,000, with bans on working in the field from one to three years.
• The bill is at the registration stage and aims to bring a largely shadow market under tax and contract rules.

What the bill proposes

Bill No. 16192 has been registered in the Verkhovna Rada. It would supplement the Criminal Code of Ukraine with a new article 203-3, titled "Illegal provision of intermediary services in the field of real estate." (Рієлторам готують нові покарання: за що можна отримати штраф до 68 тисяч гривень – my.ua) (Рієлторам готують нові покарання: за що можна отримати штраф до 68 тисяч гривень – TSN)

Under the draft, acting as an intermediary in property deals without agent status or without a written contract with the buyer or seller would carry a fine of UAH 17,000 to 34,000, equal to 1,000 to 2,000 untaxed minimum incomes. Offenders would also be barred from holding certain positions or working in the field for one year.

If the same actions are committed for selfish motives or by a group acting under prior agreement, the fine would rise to UAH 34,000 to 68,000, or 2,000 to 4,000 untaxed minimum incomes. The ban on the activity would last three years. The draft does not provide for imprisonment.

Why lawmakers want it

The authors say a large part of the property market operates in the shadows. Realtors and consultants often are not registered, do not sign official agreements and hide income from sales or rentals. This costs the budget unpaid taxes and exposes clients to risk.

A separate bill numbered 16145 also seeks to regulate the sector, including mandatory non-cash payment of agent fees and a ban on charging without a written contract. (Никаких наличных и двойных комиссий. Как государство выводит из тени «серых» риелторов — новые правила – NV)

Status

The proposal is at the registration stage and has not been adopted. Parallel reports describe the same figures, which suggests the penalties are the core of the current draft. (Штрафи до 68 тис. грн: Рада отримала законопроєкт про покарання рієлторів - Главком – glavcom.ua) (Рієлторам загрожують штрафи до 68 тисяч гривень: за які порушення хочуть карати в Україні - ria-m.tv. РІА-Південь – ria-m.tv) (Рієлторам готують жорсткі правила: робота без договору може обернутися штрафом у 68 тисяч гривень - sud.ua – sud.ua)