On realtor activity (LRU-269-son)

22.12.2010

LAW OF THE REPUBLIC OF UZBEKISTAN

Adopted by the Legislative Chamber on November 23, 2010 Approved by the Senate on December 3, 2010

Chapter 1. General Provisions

Article 1. Purpose of this Law

The purpose of this Law is to regulate relations in the sphere of realtor activity.

Article 2. Legislation on realtor activity

The legislation on realtor activity consists of this Law and other legislative acts.

If an international treaty of the Republic of Uzbekistan establishes rules different from those provided by the legislation of the Republic of Uzbekistan on realtor activity, the provisions of the international treaty shall apply.

Article 3. Realtor activity

Realtor activity is entrepreneurial activity carried out on the basis of a contract, consisting of providing services related to transactions concerning immovable property and rights thereto, for legal entities and individuals.

Article 4. Realtor organization

A realtor organization is a commercial organization that carries out realtor activity in accordance with the procedure established by this Law.

A realtor organization may be established and operate in any organizational-legal form provided for by legislation.

A realtor organization must have on its staff at least two employees holding a qualification certificate (hereinafter referred to as a qualification certificate), including the head of the realtor organization.

A realtor organization may not engage in activities other than realtor activity.

A realtor organization may not be established by state authorities or administrative bodies.

A realtor organization shall carry out its activity only if it possesses a policy of civil liability insurance.

Article 5. Realtor

A realtor is an individual entrepreneur who holds a qualification certificate and carries out realtor activity in accordance with the procedure established by this Law.

A realtor may provide intermediary services when concluding transactions related to immovable property and rights thereto.

A realtor must hold a policy of civil liability insurance.

Article 51. Professional public associations in the field of realtor activity

Professional public associations in the field of realtor activity are non-governmental non-profit organizations based on the membership of at least fifty realtor organizations and realtors. They operate with the aim of assisting in the enhancement and maintenance of professional standards of realtors, protecting their professional interests, including in courts.

Professional public associations in the field of realtor activity shall:

participate in the preparation of test questions for the realtor qualification exam and in conducting the exam;

approve the Realtorsʼ Code of Professional Conduct and ensure systematic monitoring of its observance;

prepare proposals for improving legislation on realtor activity;

admit realtor organizations and realtors into membership in the prescribed manner;

maintain a register of their members and publish it on their official website;

monitor their membersʼ compliance with this Law, national standards of realtor services, the Realtorsʼ Code of Professional Conduct, and other regulatory legal acts in the field of realtor activity;

expel realtor organizations and realtors from membership for violations identified through monitoring and submit recommendations to the authorized body for termination of the qualification certificate of violating realtors;

provide information and methodological support to their members;

participate in the work of international organizations and commissions of authorized state bodies in the field of realtor activity;

ensure monitoring of the realtor professional development system and, by January 20 each year, submit to the authorized body information on realtorsʼ completion of professional development courses at training centers.

Decisions adopted by professional public associations in the field of realtor activity within their competence shall be binding on all their members.

Professional public associations in the field of realtor activity are financed from entrance and membership fees, as well as other funds not prohibited by legislation. The amounts of such fees and tariffs are determined by the general meeting of their members.

Leaders and employees of professional public associations in the field of realtor activity are not entitled to be founders of realtor organizations, to work in realtor organizations or as realtors, to enter into civil-law contracts with realtor organizations, or to be affiliated persons in relation to managers, realtors, or other employees of realtor organizations.

Article 52. Governing bodies of professional public associations in the field of realtor activity

The general meeting of members of a professional public association in the field of realtor activity is its supreme body and shall be convened at least once every five years. The executive body shall be elected from among its members by the supreme body and shall carry out current management of the activities of the association.

Article 6. Authorized state body in the field of realtor activity

The authorized state body in the field of realtor activity shall be designated by the Cabinet of Ministers of the Republic of Uzbekistan.

The authorized state body in the field of realtor activity shall:

coordinate the activities of professional public associations in the field of realtor activity;

jointly with professional public associations conduct qualification examinations;

issue, terminate, and annul qualification certificates;

review proposals from professional public associations regarding termination of qualification certificates;

jointly with professional public associations approve a unified program of professional development for realtors and monitor its implementation;

form a list of employees of realtor organizations responsible for compliance with internal control rules on combating money laundering, financing of terrorism, and financing the proliferation of weapons of mass destruction;

maintain a register of professional public associations in the field of realtor activity.

The authorized state body in the field of realtor activity may also exercise other powers in accordance with legislation.

Article 7. Termination of the validity of the qualification certificate

The validity of a qualification certificate shall be terminated on the following grounds:

upon the application of the certificate holder;

if information obtained during the provision of realtor services is disclosed to third parties without the written consent of the client;

if more than two violations of legislation are committed in the course of realtor activity within one year;

if it is established that the qualification certificate was given to another person for use in realtor activity;

if a court verdict imposing a penalty in the form of deprivation of the right to hold certain positions or engage in certain activities has entered into legal force;

if a court decision declaring the person legally incapable or of limited legal capacity has entered into legal force.

The validity of a qualification certificate shall terminate from the date of the decision to that effect.

A person whose qualification certificate has been terminated on the grounds specified in paragraphs three to five of part one of this article shall not be entitled to apply for a qualification certificate within three years from the date of the termination decision.

The decision of the authorized state body to terminate the validity of a qualification certificate may be appealed in court in accordance with the procedure established by legislation.

Article 8. Annulment of the qualification certificate

A qualification certificate shall be annulled on the following grounds:

if the decision of the authorized state body to issue the qualification certificate is found to be unlawful;

if it is established that the qualification certificate was obtained using forged documents.

The decision to annul a qualification certificate shall apply from the date of its issuance.

A person whose qualification certificate has been annulled on the grounds specified in paragraph two of part one of this article shall not be entitled to apply for a qualification certificate within three years from the date of the annulment decision.

The decision of the authorized state body to annul a qualification certificate may be appealed in court in accordance with the procedure established by legislation.

Chapter 2. Types of realtor services and procedures for their provision

Article 9. Types of realtor services

Realtor activity is carried out through the provision of the following types of realtor services:

intermediation in concluding transactions concerning immovable property and rights thereto;

organizing the sale of immovable property and rights thereto;

fiduciary (trust) management of immovable property;

information and consulting services on the real estate market.

Article 10. Intermediation in concluding transactions concerning immovable property and rights thereto

Intermediation in concluding transactions concerning immovable property and rights thereto (actions related to the sale and purchase, lease, pledge, exchange, donation, rent, gratuitous use of immovable property, and transfer of a dwelling (apartment) to another person with the condition of lifelong support) shall be carried out by a realtor organization on the basis of a contract for the provision of realtor services concluded with the client in the manner prescribed by law. In doing so, the realtor organization may not be a direct party to such transactions.

Intermediation in concluding transactions concerning immovable property and rights thereto includes providing the client with information in accordance with Article 18 of this Law.

Article 11. Organizing the sale of immovable property and rights thereto

Organizing the sale of immovable property and rights thereto shall be carried out by a realtor organization on the basis of a contract for the provision of realtor services concluded with the client in the manner prescribed by law.

Organizing the sale includes preparing and publishing notices on holding the sale and on its results; advertising the immovable property put up for sale; receiving and registering applications for participation in the sale; entering into deposit agreements; conducting the sale; formalizing a record on the results of the sale; creating conditions for settlements between sellers and buyers; as well as other services established by law.

Article 12. Fiduciary (trust) management of immovable property

Activity on fiduciary (trust) management of immovable property is the management by a realtor organization, in its own name and for remuneration, for a specified period, in the interests of the founder of the trust management or a person indicated by the founder (the beneficiary), of immovable property transferred to the realtor organization on the basis of a trust management agreement concluded in the manner prescribed by law. The procedure for carrying out activity on trust management of immovable property shall be established by legislative acts.

Article 13. Information and consulting services on the real estate market

Information and consulting services on the real estate market shall be provided by a realtor organization or a realtor on the basis of a contract for the provision of realtor services concluded with the client in the manner prescribed by law.

Such services include providing the client with information about immovable property and rights thereto; analysis and forecasting of the state of the real estate market and its participants; information on the market situation (conjuncture); information on regulatory legal acts in the sphere of the real estate market; organizing the dissemination of advertising for immovable property; and recommendations on selecting the parties to a transaction.

Chapter 3. Rights and obligations of realtor organizations, realtors, and clients

Article 14. Rights of the realtor organization and the realtor

A realtor organization and a realtor shall have the right to:

provide realtor services within their competence;

advertise their realtor services and the clientʼs immovable property;

demand termination of the contract if the client fails to perform the terms of the contract for the provision of realtor services;

obtain, in the prescribed manner, from state bodies and other organizations the information necessary for carrying out realtor activity.

A realtor organization and a realtor may also have other rights in accordance with legislation.

Article 15. Obligations of the realtor organization and the realtor

A realtor organization and a realtor shall:

present the qualification certificate at the request of the client;

insure their civil liability;

provide realtor services to the client only on the basis of a contract for the provision of realtor services;

represent the clientʼs interests when providing realtor services;

not disclose confidential information obtained in the course of providing realtor services, except in cases provided for by law;

ensure the safekeeping of documents received from the client;

provide the client with reliable and complete information on the immovable property, the rights thereto, as well as the information on the owner (right holder) of the immovable property provided for by this Law;

provide the client with the information necessary for state registration of rights to the immovable property and of transactions related thereto;

respond in writing to the clientʼs written requests;

form archival materials on performed contracts for the provision of realtor services and store them for the period established by law;

be a member of one of the professional public associations in the field of realtor activity.

Other obligations may also be imposed on a realtor organization and a realtor in accordance with legislation.

Article 16. Rights and obligations of the client

The client shall have the right to:

demand that a realtor organization or a realtor present a qualification certificate;

receive from the realtor organization or the realtor information on the progress of performance of the contract for the provision of realtor services;

demand termination of the contract if the terms of the contract for the provision of realtor services are not fulfilled by the realtor organization or the realtor;

demand compensation for damage caused and compensation for moral harm due to termination of the contract for the provision of realtor services through the fault of the realtor organization or the realtor;

receive in writing from the realtor organization or the realtor information on the nature and legal consequences of the transaction intended to be concluded concerning immovable property and rights thereto;

apply, if his (her) rights and lawful interests are violated, to the authorized state body in the field of realtor activity, to organizations protecting consumersʼ rights, to associations of realtor organizations and realtors, as well as to the court.

The client shall:

timely pay the fee for realtor services to the realtor organization or the realtor in accordance with the terms of the concluded contract for the provision of realtor services;

provide the realtor organization or the realtor with reliable and complete information and documents regarding the immovable property that is the subject of the transaction, the rights thereto, and about himself (herself) and other right holders.

The client may have other rights and obligations in accordance with legislation.

Chapter 4. Information support of realtor activity

Article 17. Conditions for providing information to the realtor organization and the realtor

Upon receipt from a realtor organization or a realtor of a written request with a copy of the contract for the provision of realtor services concluded with the client attached, state bodies and other organizations shall provide, in the prescribed manner, the information specified in Article 18 of this Law.

Article 18. Information provided to the realtor organization and the realtor

Information shall be provided to the realtor organization by the following bodies and organizations:

by bodies carrying out state registration of legal entities — to the extent of the data entered in the state register of legal entities;

by bodies carrying out state registration of rights to immovable property and of transactions related thereto — to the extent of the data entered in the state register of rights to immovable property and other publicly accessible databases on immovable property;

by state tax authorities — on the absence of arrears in payment of taxes with respect to the immovable property that is the subject of the transaction;

by internal affairs bodies — on the registration of citizens at the address of the immovable property that is the subject of the transaction;

by notarial offices — on the absence of prohibitions on transferring the immovable property that is the subject of the transaction to another person and on the absence of seizure (attachment) of such property;

by utility service organizations — on the absence of arrears in payment for services rendered with respect to the immovable property that is the subject of the transaction;

by homeownersʼ associations, managing organizations, or managers — on the absence of arrears in payment of mandatory contributions for maintenance of common property with respect to the immovable property that is the subject of the transaction;

by district (city) divisions of the off-budget Pension Fund under the Ministry of Finance of the Republic of Uzbekistan, and by district (city) divisions for methodological support and organization of the activities of healthcare institutions and public education institutions — to the extent of the data necessary to determine the legal capacity of a person belonging to certain categories of citizens (minors and other persons who have been declared, in the prescribed manner, legally incapable or of limited legal capacity, persons with disabilities, pensioners, and others);

by civil status registration bodies — on the existence or absence of a record of marriage concluded or dissolved by persons holding rights to the immovable property that is the subject of the transaction, or on their birth or death.

Only the information specified in the second and third indents of part one of this article shall be provided to a realtor.

Information may also be provided to the realtor organization and the realtor by other bodies and organizations in accordance with legislation.

Article 19. Appeal against refusal of an official to provide information

A refusal by an official of a state body or other organization to provide to a realtor organization or a realtor the information requested in accordance with Articles 17 and 18 of this Law may be appealed, in a hierarchical manner, to a higher body or official, or directly to a court.

Chapter 5. Contract for the provision of realtor services

Article 20. Mandatory requirements for the contract for the provision of realtor services

A contract for the provision of realtor services shall be concluded in writing by a realtor organization or a realtor with the client.

The contract for the provision of realtor services shall include:

the substance of the realtor services;

time limits for the provision of realtor services;

the amount, conditions, and time limits for payment for the provided realtor services;

the rights and obligations of the realtor organization or the realtor and of the client;

liability of the parties for failure to perform or improper performance of contractual obligations and for violation of the rights and lawful interests of third parties;

the procedure and conditions for termination of the contract;

the procedure for refunding funds if obligations under the contract are not performed or are improperly performed;

information on the availability of the realtorʼs qualification certificate;

information on the availability, with the realtor organization or the realtor, of a policy of insurance of civil liability.

Other terms may also be included in the contract in accordance with legislation.

Article 21. Documents confirming performance of the contract for the provision of realtor services

A realtor organization or a realtor shall prepare an act (document) confirming performance of the contract for the provision of realtor services, which shall be signed by the head of the realtor organization or the realtor and by the client. In doing so, the realtor organization or the realtor shall deliver to the client all documents directly related to the provided realtor services.

Article 22. Provision of realtor services to several clients

A realtor organization or a realtor shall have the right to provide realtor services simultaneously to several clients with respect to the same immovable property and rights thereto. In such cases, the conditions for the provision of realtor services shall be the same for all clients.

The realtor organization or the realtor shall disclose to all clients information on the immovable property and on the rights of third parties thereto.

Article 23. Protection of the rights of third parties

A realtor organization or a realtor and the client shall not be entitled to conclude a contract for the provision of realtor services without the consent of persons holding rights to the immovable property that is the subject of the transaction.

If, in the course of or as a result of performance of the contract for the provision of realtor services, pecuniary and/or moral damage is caused to third parties, the realtor organization or the realtor and the client shall compensate the damage and pay compensation for moral harm in the manner prescribed by law.

Persons whose rights to the immovable property that is the subject of the transaction have been violated, including legal representatives acting in the interests of minors, shall have the right to apply to a court.

Chapter 6. Final provisions

Article 24. Associations of realtor organizations and realtors

Realtor organizations and realtors who are members of professional public associations in the field of realtor activity shall have the right, in the manner prescribed by law, to establish other associations of realtors in order to represent and protect their common interests.

Article 25. Dispute resolution

Disputes arising in the field of realtor activity shall be resolved in the manner prescribed by law.

Article 26. Liability for violation of legislation on realtor activity

Persons guilty of violating legislation on realtor activity shall be liable in the manner established by law.

Article 27. Bringing legislation into conformity with this Law

The Cabinet of Ministers of the Republic of Uzbekistan shall:

bring governmental resolutions into conformity with this Law;

ensure that state administration bodies review and repeal their regulatory legal acts that contradict this Law.

Article 28. Entry into force of this Law

This Law shall enter into force six months after the date of its official publication.

President of the Republic of Uzbekistan I. KARIMOV

Tashkent,

December 22, 2010,

No. LRU-269