In early April 2025, a bill concerning real estate brokers was submitted to the National Assembly of the Republic of Bulgaria. Real estate brokerage is a widely practiced activity of considerable public interest. However, it has not yet been adequately regulated by a specific legislative act. Given the large-scale nature of real estate transactions and their significant impact on society, establishing proper regulatory measures is essential. The absence of legal regulation allows brokerage activities to be conducted without oversight by individuals and legal entities, potentially causing harm to the parties involved in transactions without accountability. The current legislation does not impose requirements on those practicing as real estate brokers, increasing the risk of low-quality brokerage services.
To enhance client protection in real estate transactions, the bill introduces specific requirements for individuals eligible to operate real estate agencies. A key objective is also to prevent agencies from engaging in practices that undermine the state by evading mandatory taxes. Additionally, a key priority is to establish fundamental protection by implementing measures against money laundering and the financing of terrorism by intermediaries in real estate transactions. These intermediaries, defined as obligated persons under Article 4, item 18 of the Bulgarian Law on Measures Against Money Laundering, are essential in ensuring compliance. The ultimate aim is to remove the Republic of Bulgaria from the 'grey list,' where it has been placed due to these concerns.
Another key objective of the law is to establish regulations ensuring the professional competence of real estate brokers. These measures are designed to guarantee that brokerage services are delivered by qualified professionals who possess the necessary knowledge, experience, and specialized training.
The draft law also proposes the establishment of a National Register of Real Estate Agents. The purpose of this register is to ensure public access to information about individuals offering these services, including details on their education, professional experience, and any sanctions or fines imposed. By providing comprehensive data on each agency and the brokers working within them, the register aims to enhance transparency in the provision of intermediary services.
This law will establish clear regulations governing the relationship between real estate agents and their clients, ensuring stronger protection against unfair practices and fraud. Its primary objectives will be achieved through the implementation of administrative and penal measures designed to penalize misconduct by agencies and brokers, while also serving as a deterrent and preventive mechanism.
The law will promote greater transparency and facilitate the enforcement of legal liability in cases of unlawful, unfair, or improper conduct toward clients.