By Lia Avagyan
Armenia’s government approved draft legislation last Thursday that would formally regulate the country’s real estate brokerage sector for the first time, imposing mandatory registration, professional certification, and fines for noncompliance in a move aimed at curbing tax evasion and improving service quality.
The bill on “Real Estate Brokerage Activity,” submitted by the Cadastre Committee, introduces strict new requirements for individual agents and companies operating in the sector, where officials say thousands currently work in the shadow economy without oversight or tax obligations.
According to the government’s rationale, the real estate sector in Armenia currently functions without any legislative framework. Many brokers handling property sales and rentals operate informally, avoiding taxation and lacking professional standards.
Under the proposed law, all real estate brokers and agencies will be required to register in a state registry and may only operate after completing a formal qualification process. Violators, those working without registration or formal contracts, will face administrative penalties.
A centralized online information system will also be introduced, becoming mandatory for all brokers. The platform will record all real estate transactions and is intended to make unregistered activity virtually impossible. Brokers must pay an annual state fee of about $1,200 to use the system.
Brokers must also sign contracts with their clients and input transaction details into the unified platform. Failure to do so will result in fines, according to the bill.
The legislation also introduces the legal concept of real estate management services. Companies offering such services will be required to open designated bank accounts to receive client payments and manage income transfers, with the aim of ensuring financial transparency.
Government officials say the reform is expected to bring a large portion of the sector into the formal tax system, increasing state revenues. By defining professional standards, the measure also seeks to raise the quality of services and protect the rights of buyers, sellers, and tenants.
The draft legislation will now move to Armenia’s parliament for debate and final approval.
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