Things to know about real estate brokerage in Serbia

Important things you need to know if you wish to do real estate agency business in Serbia

 

The activity of real estate brokerage and lease (“Agency“) has experienced a great expansion in the previous period, especially in Belgrade. The area of the​​ Agency is regulated by a regulation that provides an initial framework for further and additional regulation, which is necessary and expected.

 

What is Agency and who can be an agent?

According to the Act on Real Estate Brokerage (“REB Act”)[1], the Agency constitutes an activity that includes search operations to bring in connection with the principal of the other contracting party, which would negotiate with him on the conclusion, i.e. conclude a contract on the sale or lease of real estate, which is performed for a fee.

The agent (“Agent”) can be:

  • company or
  • entrepreneur;

which has its registered office in the Republic of Serbia and which is entered in the Register of Agents (“Register”).

 

What are the conditions for entry in the Register?

Entry in the Register is made at the request of the person requesting entry in that Register (“Applicant”).

In order for the Applicant to be able to register in the Register, it is necessary to meet the following conditions:

  • That the entrepreneur or at least one natural person who is founding a company, or another member of the company, or at least one full-time employee has passed the professional exam;

 

  • a valid insurance contract that the Agent is obliged to make with an insurance company based in the Republic of Serbia, for damage that could occur to the principal due to non-fulfillment of contractual obligations under the brokerage contract or obligations under the REB Act;

 

  • appropriate business premises and equipment that meet the minimum technical requirements and that are functionally separated from the living space;

 

  • that the Applicant has not been imposed a protective measure prohibiting Agency, which is in force at the time of submitting the request;

 

  • that the founder, i.e. owner, beneficial owner, associate, member of the management body of the company who has registered the predominant activity of the real estate agency, representative of the company, member of the management body of the company, as well as natural persons with a passed professional exam, entrepreneur, that is, the manager, if the entrepreneur has entrusted the management to a legally capable natural person, has not been sentenced to a fine, if he is a legal entity, or to imprisonment, if a natural person, for a crime in the Republic of Serbia or a foreign country. repeated the violation of the regulations governing the prevention of money laundering and terrorist financing during the period of the protective measure prohibiting the performance of certain activities that represent the predominant activity of the economic entity for trade and lease of real estate or the duration of the protective measure prohibiting the responsible person to perform certain activities for traffic and lease of real estate, i.e. during the duration of the imposed protective measure prohibiting the responsible person to perform certain duties, with the real estate agency and the lease of real estate whose predominant activity is the provision of real estate services and leases.

The decision on registration is made by the Minister of Trade within 30 days from the day of submitting the request.

The Applicant may start the Agency on the day of the decision.

 

What expenses await you if you want to get into Agency?

In addition to the above-mentioned conditions that need to be met for entry in the Register, in order to start dealing with Agency, it is necessary to allocate certain funds for some of the following needs, i.e. activities:

  • providing business premises and equipment that meet the previously mentioned conditions, and whose prices depend on many factors, such as location, size, market conditions, etc.
  • drawing up a contract with an insurance company as well as the insurance fee itself;
  • administrative fee for entry in the Register;
  • other ancillary costs of the Agency, such as costs for employees, costs for preparation and taking the professional exam, etc.

 

What are the consequences of performing Agency without registration?

Article 12 of the REB Act explicitly prohibits Agency performed by a natural person or a legal entity who has not entered the Register.

For violating the mentioned prohibition, the REB Act envisages a fine that will be imposed in a misdemeanor procedure on a legal entity, entrepreneur, natural person as well as on a responsible person in a legal entity, in the amount of twice to five times the usual agency fee.

In addition to a fine, a legal entity, entrepreneur, or natural person may be imposed a protective measure prohibiting the Agency from one to three years, as well as a protective measure of a public announcement of the sentence.

 

For more info on this or any other legal, tax or business topic, please feel free to write to us at office@statt.rs at any time OR contact us via telephone number +381113281914 during working days from 08:30 to 16:30

 

[1] Act on Real Estate Brokerage (Official Gazette of the RS, No. 95/2013, 41/2018 and 91/2019);