The National Real Estate Association has raised concerns regarding the proposed Bill on Real Estate Brokers, submitted by MP Valeri Plamenov Lachovski and others. According to the association, the draft law fails to adequately define the responsibilities of real estate brokers during transactions, as reported by Pariteni.

Real estate transactions involve a multifaceted process aimed at safeguarding the financial and investment interests of all parties. The association argues that brokerage is more than merely linking buyers and sellers. It encompasses various tasks, such as gathering information about the property and its owner, understanding the needs of prospective buyers, organizing viewings, showcasing the property, supporting negotiations, and drafting preliminary agreements.

In practice, brokers often provide additional services, including financial and market analysis, marketing strategies, and expert advice that draws on legal, technical, economic, and psychological expertise. However, the association asserts that the bill does not account for this complexity. As currently proposed, even coordinating a property viewing could entitle a broker to demand a commission, which the association views as problematic.

The industry warns that this could legitimize controversial practices, such as charging disproportionately high commissions for minimal services—a practice widely referred to as an “introduction fee.” The association believes the bill opens the door to potential abuse by dishonest agencies.

Another significant criticism is the lack of specificity regarding brokers’ responsibilities to inform clients. A core duty of intermediaries is to provide essential details about the property, including potential risks and legal or structural particularities involved in the transaction. The bill, however, fails to outline a minimum legal threshold for the type of information brokers must share—such as proof of ownership, existing encumbrances, the intended use and technical characteristics of the property, and pricing determinants.

The draft legislation vaguely mandates that brokers supply "information that could influence [a client’s] decision to conclude a transaction," a provision the association says is too ambiguous to ensure adequate consumer protection.

Further, the bill does not clarify brokers’ obligations when receiving funds from clients. The routine handling of client money—for instance, through “stop deposits”—is a widespread practice, yet it is not sufficiently addressed in the current proposal.

The association also emphasizes that the bill fails to address misleading advertisements. These may not always involve false claims, but rather listings that are consistently unavailable for viewing due to various circumstances, which remain unregulated under the proposed changes.

According to the association, these gaps would also complicate the creation of required professional liability insurance for brokers and agencies, leaving clients further unprotected.