The Latvian Ministry of Economics has compiled the 2023 supervision results for real estate transaction intermediaries (brokers), concluding that the majority of brokers, who are registered in the real estate transaction intermediary register, conscientiously adhere to the obligations set out in regulatory regulations. This includes having insured their civil liability and raised their qualifications within the specified deadlines, thereby demonstrating their professionalism and conscientious attitude towards clients, other industry merchants, and the state.
As of December 31, 2023, there are a total of 763 active intermediaries in the real estate transaction intermediary register; including 199 new intermediaries registered during the year 2023. In 2023, a total of 162 intermediaries were excluded from the register, including:
- 2 had their economic activity suspended by a decision of the State Revenue Service (VID);
- 5 companies were liquidated;
- 69 were excluded based on their own applications;
- 86 intermediaries were excluded for not raising their qualifications.
To re-register in the real estate transaction intermediary register, an intermediary must submit an application to the Ministry of Economics, an insurance policy, documents proving the completion of qualification improvement measures, and pay a registration fee. It is informed that with 2024, the account number of the State Treasury for intermediaries to make registration or supervision fee payments has changed: LV27TREL8120038041000.
The Ministry of Economics reminds that for providing illegal services (i.e., without registration in the real estate transaction intermediary register), real estate transaction intermediaries may be subject to an administrative penalty by the State Revenue Service – a warning or a fine up to 500 EUR for individuals and up to 8000 EUR for legal entities. It is noted that an individual can register as a real estate transaction intermediary only if they have registered their economic activity with the State Revenue Service.
Additionally, it is reminded that in 2023, with amendments to the Real Estate Transaction Intermediaries Activity Law, requirements for the operation of real estate transaction intermediaries in Latvia were strengthened, ensuring more effective supervision of their professional activities, promoting stable, safe, and reliable intermediary services, and reducing shadow economy in the sector.
The law has been amended to include an additional mechanism to restrict the activities of real estate transaction intermediaries who have not improved their qualifications within a calendar year. It states that if a real estate transaction intermediary has not met the qualification improvement requirements, they may be reinstated in the register upon fulfilling these requirements.
The law has also been supplemented with a provision that requires a real estate transaction intermediary to undertake qualification improvement measures if they have been excluded from the register based on their own application, stipulating that the qualification measure must be undertaken if the intermediary wishes to re-register.
Since August 2020, the Real Estate Transaction Intermediaries Activity Law regulates the legal basis for the professional activities of real estate transaction intermediaries and ensures the supervision of their professional activities to prevent money laundering, terrorism and proliferation financing, and to promote stable, safe, and reliable intermediary services. The law requires real estate transaction intermediaries to insure their professional civil liability. The Cabinet of Ministers' rules of September 29, 2020, No. 602 "Rules on Civil Liability Insurance of Real Estate Transaction Intermediary's Professional Activity" set the minimum annual liability limit of the insurance contract and mandatory risks to be insured by the real estate transaction intermediary. Simultaneously, the law stipulates that from July 2021, intermediary services may only be provided by persons included in the Real Estate Transaction Intermediary Register, which is publicly available on the website of the Ministry of Economics.
Ministry of Economics Public Relations Department 67013193 prese@em.gov.lv