The attention of consumers of real estate services

12.03.2019

Article's author:

Lomanov Batyr Jumaevich

Founder and Director of Hekem and Hekem Audit Individual Enterprises


The legislation of Turkmenistan on realtor activity is based on the Constitution of Turkmenistan and consists of the Law of Turkmenistan “On realtor activity”, adopted on 30.05.2015, and other regulatory legal acts of Turkmenistan governing relations in the field of realtor activity. The law defines the legal, economic and organizational basis of real estate activity in Turkmenistan and regulates the relations arising from its implementation. The objectives of the Law are: to establish the legal, economic and organizational foundations of the single property market in Turkmenistan; establishing the basis for state regulation of real estate activities, as well as ensuring compliance with and protecting the rights of consumers of services.

What is “Realtor activity”, who has the right to carry it out and what is the responsibility for illegal realtor activity - questions that often ask consumers of services.

Speaking about responsibility for illegal realtor activities, it should be borne in mind that, according to Article 1, Part 1, Clause 7 of the Law of Turkmenistan “On Realtor Activities”, adopted on May 30, 2015, realtor activity is an entrepreneurial activity of a realtor on a contractual and reimbursable basis of real estate services to an individual or legal entity that consumes these services, associated with the establishment, change and termination of his rights to real estate in accordance with the laws of Turkmenistan, and uschestvlyaemaya to his advantage. According to Art. 5 of the same law, realtor organizations have the right to carry out real estate activities on the basis of a license. Thus, according to the listed norms and p. 36, p.1, art. 20 of the Law of Turkmenistan "On the procedure for licensing certain types of activities" real estate activity is subject to licensing.

Speaking of responsibility, it should be borne in mind that Art. 239 of the Criminal Code of Turkmenistan provides for liability in the form of a fine of fifty to one hundred monthly average wages or corrective labor for up to two years for conducting business without registration and special permission (license) in cases when such permission (license) is mandatory, or with violation of licensing conditions, if this act is associated with the extraction of income on a large scale.

At the same time, income on a large scale is recognized as income received within one year, the amount of which exceeds five hundred times the average monthly wage.

In the absence of evidence of a criminal offense, for the same actions committed by natural or legal persons, administrative responsibility shall be incurred under Art. 283 of the Code of Administrative Offenses of Turkmenistan in the form of a fine, up to an administrative arrest.

Consumers of realtor services should remember that they have the right to demand from persons engaged in real estate activity a certificate of certification of a realtor and a license for real estate activities issued by the Ministry of Finance and Economy of Turkmenistan, and then enter into an agreement with a real estate company for the provision of realtor services.

What are the types of real estate services, what exactly is the content of real estate services? Answers to these questions are contained in Art. 6 and 7 of the Law of Turkmenistan "On Realtor Activity".

Realtor services are understood as a set of actions aimed at preparing and supporting the transfer of ownership or use of real estate, namely:

provision of services to the consumer for the sale, exchange or transfer for lease (lease) of real estate, which he has the right to dispose of on a legal basis; provision of services to the consumer for the acquisition of real estate owned by third parties to his property or for use; provision of consulting services, market research and other compensated services related to the civil turnover of real estate.

The content of a real estate service is: the study and analysis of the real estate market situation, the determination of the recommended price of real estate; ensuring the safety of documents received from the consumer services for the preparation of the transaction; ensuring the protection of the interests of consumers of the service by explaining the rights and obligations, as well as the legal consequences of transactions; advertising of real estate as a commodity under the conditions stipulated by the concluded contract for the provision of real estate services; selection of real estate that meets the criteria set by the consumer services; obtaining from the state registration bodies the rights to real estate and transactions with it, and other bodies with the necessary information about real estate and rights to it; expert assessment of the content of title and other documents necessary for making transactions with real estate and issuing recommendations for bringing them to the level of requirements imposed by the legislation of Turkmenistan;

bringing to the consumer of the service information that has become known to the realtor, which can significantly (within the scope of the task set for the real estate organization under the contract) affect the consumer’s decision to enter into a real estate transaction; organization and implementation of business contacts and negotiations with third parties, taking into account the conditions stipulated by the agreements concluded; drawing up agreements on the alienation of immovable property, necessary agreements, additions, acts and other documents necessary for the conclusion of these agreements;

assistance to consumer services in the submission of documents for state registration of rights to real estate and transactions with it.

At the same time, the subjects of real estate activity described above are real estate organizations, and the objects of activity are the following types of real estate: residential premises; shops, offices and other commercial real estate;

enterprises as a property complex; land plots in transactions and other operations with objects located on these land plots, the movement of which without proportional damage to their purpose is impossible, unless otherwise provided by the land legislation of Turkmenistan.

When rendering real estate services, a real estate organization may act as: attorney - on the basis of a contract of assignment;

commission agent - on the basis of a commission agreement; dealer - on the basis of the contract of sale; an intermediary between persons expressing the intention to acquire or sell real estate; real estate trade organizer.

As practice shows, real estate organizations most often act as an intermediary between persons who have expressed their intention to acquire or sell real estate (acquire or transfer rights to such property) to provide services for finding counterparties for the subsequent execution of relevant transactions, which the realtor itself is a direct party to organization is not.

Individual enterprises Hekem and Adyl Hekem conclude trilateral agreements for the provision of real estate services, in which the parties are persons who have expressed their intention to acquire, persons who have expressed their intention to sell real estate, as well as an enterprise that acts as an intermediary between them.

The basis for the provision of real estate services is a contract for the provision of real estate services concluded between a real estate organization and a consumer of a service in accordance with the laws of Turkmenistan. Under the contract, the realtor organization undertakes to provide real estate services, and the consumer of the services undertakes to pay for these services. The contract between the realtor organization and the consumer of the service gives the realtor organization the right to act in the interests of the consumer of the service to the extent specified in the contract without a power of attorney, unless the legislation of Turkmenistan or the contract establishes the requirement for a power of attorney to perform certain actions. The power of attorney issued by the realtor organization to the consumer of the service on the basis of an agreement is subject to notarization. The fact of rendering real estate services is confirmed by an act of services rendered, containing a confirmation of the fulfillment by the real estate organization of the terms of the contract signed by the consumer of the service and the realtor on behalf of the real estate organization with which the consumer of the service entered into this contract.

When concluding a contract with a real estate organization, consumers of services should know that they have the right to: freely choose a real estate organization; get acquainted with the documents confirming the right of the real estate organization to carry out real estate activities; receive from the real estate organization comprehensive information on the requirements of the regulatory legal acts of Turkmenistan governing the implementation of real estate activity, as well as the Rules of realtor activity and the Rules of professional ethics of a realtor; monitor the implementation by the real estate organization of the conditions of the contract; to file statements and complaints to the authorized body, the public association of realtors, as well as to the court for actions (inaction) of the real estate organization that resulted in violation of their rights and legitimate interests; in terms and in accordance with the procedure established by the contract, to receive back from the real estate organization all the documents provided to it, necessary for the provision of real estate services; receive in accordance with the legislation of Turkmenistan compensation for damage (harm) caused as a result of proven guilty actions (inaction) of the real estate organization.

At the same time, service consumers are obliged to: exercise their rights without harming third parties who are not a party to the contract and their property; create real estate organizations the necessary conditions for the timely and high-quality provision of real estate services in accordance with the concluded agreement; provide the real estate organization with the full and reliable information and documents for real estate objects, the rights to them, as well as about themselves and other right holders, in writing or orally, necessary for the provision of real estate services; not to interfere with the activities of the realtor organization, if this may adversely affect the outcome of the provision of real estate services, including limiting the range of issues to be clarified during the provision of this service; upon request of a real estate organization, send written requests on its own behalf to third parties in order to obtain information necessary for the provision of real estate services.

The information you received after reading this article, in our opinion, is useful and can protect you, dear consumers of real estate services, from the many troubles delivered by individuals who carry out real estate activity illegally.