No commission caps for real estate agents

The government said that no ceilings will be imposed on the commissions charged by real estate agents, brushing aside the lawmakers proposal

After an extensive debate within the first standing committee of the Legislative Assembly (AL), the government has ruled out the lawmakers’ proposal of imposing ceilings to the commissions charged by real estate agents, the Portuguese-language channel of Radio Macau reported yesterday.
President of the committee, Kwan Tsui Hang, also told reporters the government did not step back on changing the provision of the draft real estate law which allows non-resident workers to apply for a licence. This was one of the hot issues of this draft that has divided the committee’s members.
The government stressed that it is necessary to open the business to non-residents, explaining that the same policy is already introduced in other countries and regions.
The committee discussed the exclusivity issue, which can be provided in the contract to be signed with real estate agents. In this case, the committee believes that the regime should be decided exclusively by grantors and not by the law.
Lawmakers yesterday also suggested the government add a new provision to regulate the cases in which the mediator represents both the buyer and the seller.
The bill is aimed at improving real estate agent professional skills, in order to better safeguard consumer rights. The draft law establishes that real estate agents and brokers will have to hold at least a senior secondary level of education and a professional licence from the government to operate.
Even with the necessary qualification, agents will be required to undertake a 30 hour compulsory training course to receive the licence.
Agents aged over 40 working in this field for more than five consecutive years, who have attended the required Labour Affairs Bureau’s (DSAL) course, will be exempt from the new requirements.
If the agent has between three and five years of experience and does not meet the new education requirements, he or she will have to attend a 96 hour course in order to be allowed to apply for a professional licence.
Once the law is enacted agents will be required to attend a course for real estate professionals organised by the DSAL in order to renew their licence. Once approved, they will receive a licence valid for three years.
However, the Government wants to ensure no jobs are jeopardised by the law, and so has decreed a three-year grace period for professionals to adapt to the new regulations. Agents will hold a provisory licence until they meet the new requirements stated in the new law.     

A.L.