The new Law on Real Estate Intermediation is in force

A new Law on Real Estate Mediation has come into effect in Croatia, aiming to further regulate the real estate market by enhancing consumer protection and clarifying the obligations of mediators and agents. The law was introduced to provide greater legal certainty for citizens while establishing clearer guidelines for professionals operating in this sector. According to Minister of Economy Ante Šušnjar, this legislation marks a significant step forward in the ongoing regulation of the real estate market. Šušnjar emphasized that buying or selling property represents one of the most important life and financial decisions individuals make. As such, he stated that citizens must have clear information about who provides the service, under which conditions, and who bears the costs associated with mediation. The new law aims to precisely define the rights and obligations of all participants, ensuring greater legal security for citizens and clearer rules for professional mediators. This approach creates conditions for a more transparent and orderly real estate market. According to a statement from the Ministry of Economy, the new legal framework introduces several changes designed to increase user safety when purchasing, selling, or renting property. Citizens will benefit from clearer information regarding the terms of service provision, costs, and responsibilities related to paying mediation fees. Additionally, the regulations further clarify advertising and viewing procedures for properties. Only mediators who meet the legally prescribed conditions can perform mediation activities. Citizens can check information about registered mediators in a publicly accessible Register maintained by the Croatian Chamber of Commerce. The law also strengthens professional standards within the mediation industry, requiring agents to pass a professional exam, be listed in the Agent Directory, and work for a single mediator. Processes for registering in the Mediator Register and the Agent Directory are fully digitized through the START Plus system. An important change relates to mediation fees. A mediator can charge a fee exclusively from the person with whom they have signed a mediation agreement. This measure further protects citizens and ensures greater legal security for all parties involved in the real estate market, according to the Ministry of Economy. The law also increases the minimum amount of insurance coverage against the professional liability of mediators. It introduces a requirement for mediators and individuals managing their business operations to maintain a good reputation. Stricter advertising rules are established, along with an obligation to keep records of all mediation activities. These provisions aim to enhance accountability and transparency in the sector. In conjunction with the implementation of the law, the Ministry of Economy has published two informational infographics summarizing the most important updates. One infographic is intended for citizens, while the other targets mediators and agents in the real estate sector. These materials serve as practical guides to help stakeholders understand the implications of the new regulations. The introduction of the new Law on Real Estate Mediation reflects broader efforts to modernize and strengthen the regulatory environment surrounding property transactions. By setting higher standards for professionals and providing consumers with more detailed information, the government seeks to build trust in the real estate market. The emphasis on digitalization and transparency underscores the commitment to creating a fairer and more efficient marketplace for all participants. As the law takes effect, its impact will likely become evident over time. Industry experts and practitioners are expected to adapt to the new requirements, potentially leading to increased compliance and improved service quality. Meanwhile, consumers are encouraged to familiarize themselves with the updated regulations to ensure they are well-informed when engaging in real estate transactions. The success of this initiative will depend on effective enforcement and continuous monitoring of its implementation.