When will there be effective regulation of real estate agents?

The supervisory authorities and professionals underline its role in reviving the sector

The challenge of an effective recovery of the real estate market depends on upgrading all of its components. However, some branches are still subject to anarchy. This is the case with real estate intermediation. The delay in the approval of the bill on the regulation of the profession of real estate agents challenges professionals in this branch. This legal text has been dragging on in the circuit since April 2017. Something that arouses the incomprehension of the initiators of this bill.

Professionals still perplexed

“We just want to understand why this project has still not been presented to the Governing Council for approval when it has been submitted to the General Secretariat of the Government for more than 3 years”, underlines Mohamed Lahlou, past-president of the ‘Moroccan Association of Real Estate Agents (AMAI). Created in 2012, the association has made the regulation of the profession its workhorse. The ambition is to put an end to the anarchy which weighs down the credibility of their activity. Especially since the current context requires more vigilance and professionalism so as not to sink the real estate market into more setbacks.

“This is a sector that lives in total anarchy. The real estate market is disrupted by the presence of intermediaries (semsars) who do not correspond to any profile, “said Mr. Lahlou. And to continue that “following the health crisis, the situation worsens further. Anyone can identify themselves as a real estate agent without a degree or training. We cannot tolerate all of this. Morocco is changing. This project must see the light of day ”. According to professionals, the entry into force of this law would give their activity more transparency and credibility. This legal framework would also help revive the sector as it would allow investors to come into contact with structured agencies and have regulated interlocutors.

The supervisory body convinced of the relevance of this new framework

In terms of supervision, this new legal framework has a remarkable place in the economic recovery plan for the exit from the health emergency. “The treatment of the economic fallout from the Covid-19 pandemic on the real estate and rental sectors has highlighted the vital role that the real estate agent can play in alleviating controversies between the lessor and the tenant, resulting from non-payment rent due to the loss of employment, or failure to meet the deadlines set for the payment of rent, as well as the facilitation and security of real estate transactions, avoiding travel and friction between people ”, comments in this meaning the department of Nouzha Bouchareb.

Contacted by ALM, the ministerial department underlined the great importance of this bill, given its complementarity with other legal texts in the implementation of the reform of the real estate sector in general and of the rental sector in particular, and this starting from several considerations. In addition to relaunching the sector, the supervisory authority lists the importance of the institutionalization and modernization of the status of real estate intermediaries in consolidating confidence between the parties in real estate transactions (sale and rental) and the role of this profession in strengthening the guarantees of contractual security.

Outline of the bill

Built around thirty articles, the bill regulating the profession of real estate agents lays down provisions relating to the organization of the profession of real estate agent as a liberal profession governed by law. The text requires individuals wishing to exercise this profession to be of Moroccan nationality, who have not been the subject of a final judicial sentence for acts undermining honor, trust and integrity. The agent must have a bac + 2 or equivalent or have five consecutive years of experience in this field.

To secure transactions, the agent must have a physical office where he can practice his profession, knowing that currently most agents work from cafes or their homes. Likewise, real estate transactions should go through the notary. The latter must declare the real estate agency in the final contract and undertake to ensure that the contractors pay the full fees of the real estate agency. An approach that would ensure transparency and subsequently avoid theft and other problems associated with the acquisition of real estate. Regulation of this sector is also based on a licensing process.

For this purpose an accreditation card will be instituted by virtue of which the real estate agent will be registered in a national register and de facto authorized to practice, and this at the latest one year after receipt. It will be submitted by the ministry responsible for housing after consultation with a commission to be set up in this regard. Sanctions will also be introduced to ensure good performance in the profession, ranging from a warning and blame until the termination of the accreditation card for a period of six months until its final withdrawal.

Source : Aujourd’hui le Maroc