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Controversy over real estate association: what the entities are asking for and why they reject the deregulation that the government is considering - Infobae
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www.infobae.com
February 15, 2025
Amidst government measures under analysis, businessmen in the sector warn of the risks of informality, such as a decline in quality standards and legal guarantees
By Jose Luis Cieri
The debate on real estate deregulation brings into question the role of professionals in sales and rental operations, and its impact on the legal security of the sector (Illustrative Image Infobae)
The possible deregulation of the real estate sector in Argentina is generating a heated debate among key market players. According to information released by Infobae , the Government is considering a reform that would eliminate the obligation to be registered to operate as a real estate broker, replacing it with a system of certificates and training.
This proposal is currently being analyzed by the Minister of Deregulation and State Transformation, Federico Sturzenegger , and is expected to be ready within 45 days.
The Government is seeking to implement a system in which the requirement of a professional or university degree is no longer a requirement and which allows those who want to work in the industry to prove their experience through other means.
Officials told Infobae that "the idea is for these new modalities to coexist with traditional professional associations so that there are different options on the market."
However, the main representatives of the country's real estate associations and federations expressed their rejection of the project, arguing that this deregulation could increase informality and reduce service quality standards, affecting both the profession and owners, tenants and those interested in investing in "bricks and mortar".
The sector highlights that in Argentina there are more than 70,000 professionals who work in real estate agencies that generate more than 500,000 direct and indirect jobs , which could be at risk.
As pointed out by the Federal Council of Real Estate Colleges of the Argentine Republic (Cofeci), an institution made up of real estate colleges from various provinces in the country and CABA, they reported that in recent days the media has highlighted the growth of the real estate market and that this is not a coincidence , but rather due to the work and professionalism of those who work in it. “It would be criminal to attack this,” concludes the statement issued by the entity led by Virginia Manzotti .
Real estate investments are indeed one of the safest on the market, but there may be others that are even safer. Photo: Google
“Eliminating mandatory membership may seem to encourage greater competition, but the real estate market in Argentina is already deregulated . Membership ensures that real estate agents have the necessary training and regulation to operate in an ethical and professional manner,” Frangella said. He warned that such a reform could lead to an increase in informality and a direct impact on consumer confidence.
He also pointed out that the elimination of the current system could cause a “negative impact on the costs of real estate transactions” and would weaken their legal security.
Frangella mentioned that regulations such as Law 2340 of the CABA protect both consumers and professionals and prevent legal disputes. Improving professional quality should be the central focus, he emphasized, instead of eliminating professional association: “ethics and legal security are pillars that should not be compromised ,” he added.
According to the sector that operates mainly in Buenos Aires, the task of real estate associations in the training and continuous education of their members is essential, as is incorporating new technologies such as the development of the Cabaprop portal .
For her part, Josefina Pantano , president of the Argentine Real Estate Federation (FIRA) , also rejected this initiative. She argued that the proposal would not bring benefits to users or to the activity itself. “ Eliminating colleges and removing all rules of good practice in real estate brokerage does not result in a real economic benefit for the client or increase sales ,” she said.
He also warned of the risks of consolidating real estate monopolies that could set prices to the detriment of end customers.
A couple walks through a house with the intention of buying it. Access and transparency in real estate transactions are at the heart of the debate over the possible deregulation of the sector (Illustrative Image Infobae)
Pantano emphasized the importance of schools in professional and ethical development, as well as in providing real estate agents with access to ongoing training. “FIRA, together with its chambers and schools, actively contribute in partnership with universities and educational centers,” he said.
At the same time, he stressed the importance of maintaining standards that regulate and professionalize the activity , ensuring that it is reliable and organized.
Luis Colao , president of the Public College of Auctioneers and Brokers of the Province of Buenos Aires , explained in detail that the regulation of liberal professions is an exclusive competence of the provinces. “In the Province of Buenos Aires, this is contained in Art. 41 of the Provincial Constitution,” he said, adding that a national government regulation that “overrides this precept would be clearly unconstitutional and would undermine federalism.”
Colao defended the role of professional associations as guardians of society and not only of professionals, and emphasized the protection of irreplaceable ethical values in real estate practice.
He also stressed that the position of those in favour of this reform seems to be motivated by informal or illegal interests. “There is no profession more unregulated than that of the real estate broker,” he said.
He stressed that their intervention is not mandatory, but those who turn to professionals “seek suitability and trust,” he concluded in his analysis.
Signing a real estate contract implies legal security and professional support. The possible deregulation of the market opens the debate on the risks of operating without guarantees or expert intermediation (Getty)
Both Frangella and Pantano agree that access to mortgage credit and the creation of tax incentives are essential measures for the recovery and growth of the market. “”, Frangella stressed.
Along the same lines, Pantano stressed that it is essential to implement policies that provide greater economic stability, contain inflation and promote the construction of financed housing and subdivisions. In this way, a more dynamic and accessible market for citizens and investors would be created.
The role of real estate associations is key to the development of the sector. “If we are not the ones who promote constant training, bring new technologies to improve professional practice and articulate with universities and the State, who will do it?” Colao said.
As an example, he recalled that in November the College of the Province of Buenos Aires held the Real Estate Congress in Mar del Plata, with the participation of 600 professionals in person and more than 2,000 via streaming , where innovations such as artificial intelligence were discussed. “We always think about the growth of the activity and of those who practice it,” he added.
In December, representatives of the sector held a meeting with the president of Banco Nación (Daniel Tillard) to discuss issues such as mortgage loans , divisible mortgages and ticket registration , with the commitment to deepen work on these issues. “That is the way: interaction between professionals and the institutions that represent them,” said Colao, and warned that the current debate does not aim at simple deregulation, but at “deprofessionalization,” which would allow anyone to practice without the necessary qualifications. “It will cause a crude comparison, it would be like equating a doctor with a quack ,” he concluded.
www.buysellba.com
Source:
Polémica por la colegiación inmobiliaria: qué piden las entidades y por qué rechazan la desregulación que evalúa el gobierno
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www.infobae.com
February 15, 2025
Amidst government measures under analysis, businessmen in the sector warn of the risks of informality, such as a decline in quality standards and legal guarantees
By Jose Luis Cieri
The debate on real estate deregulation brings into question the role of professionals in sales and rental operations, and its impact on the legal security of the sector (Illustrative Image Infobae)
The possible deregulation of the real estate sector in Argentina is generating a heated debate among key market players. According to information released by Infobae , the Government is considering a reform that would eliminate the obligation to be registered to operate as a real estate broker, replacing it with a system of certificates and training.
This proposal is currently being analyzed by the Minister of Deregulation and State Transformation, Federico Sturzenegger , and is expected to be ready within 45 days.
The Government is seeking to implement a system in which the requirement of a professional or university degree is no longer a requirement and which allows those who want to work in the industry to prove their experience through other means.
Officials told Infobae that "the idea is for these new modalities to coexist with traditional professional associations so that there are different options on the market."
However, the main representatives of the country's real estate associations and federations expressed their rejection of the project, arguing that this deregulation could increase informality and reduce service quality standards, affecting both the profession and owners, tenants and those interested in investing in "bricks and mortar".
Effect on prices
And if we move in that direction, it would not impact the formation of prices , which in theory should be regulated by the market itself, added the entities that group the registered users.The sector highlights that in Argentina there are more than 70,000 professionals who work in real estate agencies that generate more than 500,000 direct and indirect jobs , which could be at risk.
As pointed out by the Federal Council of Real Estate Colleges of the Argentine Republic (Cofeci), an institution made up of real estate colleges from various provinces in the country and CABA, they reported that in recent days the media has highlighted the growth of the real estate market and that this is not a coincidence , but rather due to the work and professionalism of those who work in it. “It would be criminal to attack this,” concludes the statement issued by the entity led by Virginia Manzotti .
Criticism from professional associations
From the Real Estate Association of the City of Buenos Aires , its president, Diego Frangella , stressed that membership guarantees professionalization, ethics and adequate regulation in the real estate system.
Real estate investments are indeed one of the safest on the market, but there may be others that are even safer. Photo: Google
“Eliminating mandatory membership may seem to encourage greater competition, but the real estate market in Argentina is already deregulated . Membership ensures that real estate agents have the necessary training and regulation to operate in an ethical and professional manner,” Frangella said. He warned that such a reform could lead to an increase in informality and a direct impact on consumer confidence.
He also pointed out that the elimination of the current system could cause a “negative impact on the costs of real estate transactions” and would weaken their legal security.
Frangella mentioned that regulations such as Law 2340 of the CABA protect both consumers and professionals and prevent legal disputes. Improving professional quality should be the central focus, he emphasized, instead of eliminating professional association: “ethics and legal security are pillars that should not be compromised ,” he added.
According to the sector that operates mainly in Buenos Aires, the task of real estate associations in the training and continuous education of their members is essential, as is incorporating new technologies such as the development of the Cabaprop portal .
For her part, Josefina Pantano , president of the Argentine Real Estate Federation (FIRA) , also rejected this initiative. She argued that the proposal would not bring benefits to users or to the activity itself. “ Eliminating colleges and removing all rules of good practice in real estate brokerage does not result in a real economic benefit for the client or increase sales ,” she said.
He also warned of the risks of consolidating real estate monopolies that could set prices to the detriment of end customers.
A couple walks through a house with the intention of buying it. Access and transparency in real estate transactions are at the heart of the debate over the possible deregulation of the sector (Illustrative Image Infobae)
Pantano emphasized the importance of schools in professional and ethical development, as well as in providing real estate agents with access to ongoing training. “FIRA, together with its chambers and schools, actively contribute in partnership with universities and educational centers,” he said.
At the same time, he stressed the importance of maintaining standards that regulate and professionalize the activity , ensuring that it is reliable and organized.
Legal and economic impact
Another crucial aspect pointed out by those who reject the measure is its possible unconstitutionality.Luis Colao , president of the Public College of Auctioneers and Brokers of the Province of Buenos Aires , explained in detail that the regulation of liberal professions is an exclusive competence of the provinces. “In the Province of Buenos Aires, this is contained in Art. 41 of the Provincial Constitution,” he said, adding that a national government regulation that “overrides this precept would be clearly unconstitutional and would undermine federalism.”
Colao defended the role of professional associations as guardians of society and not only of professionals, and emphasized the protection of irreplaceable ethical values in real estate practice.
He also stressed that the position of those in favour of this reform seems to be motivated by informal or illegal interests. “There is no profession more unregulated than that of the real estate broker,” he said.
He stressed that their intervention is not mandatory, but those who turn to professionals “seek suitability and trust,” he concluded in his analysis.
Alternative proposals to boost the sector
Instead of promoting deregulation , industry leaders are proposing initiatives that will actually boost the development of the real estate market .
Signing a real estate contract implies legal security and professional support. The possible deregulation of the market opens the debate on the risks of operating without guarantees or expert intermediation (Getty)
Both Frangella and Pantano agree that access to mortgage credit and the creation of tax incentives are essential measures for the recovery and growth of the market. “”, Frangella stressed.
Along the same lines, Pantano stressed that it is essential to implement policies that provide greater economic stability, contain inflation and promote the construction of financed housing and subdivisions. In this way, a more dynamic and accessible market for citizens and investors would be created.
The role of real estate associations is key to the development of the sector. “If we are not the ones who promote constant training, bring new technologies to improve professional practice and articulate with universities and the State, who will do it?” Colao said.
As an example, he recalled that in November the College of the Province of Buenos Aires held the Real Estate Congress in Mar del Plata, with the participation of 600 professionals in person and more than 2,000 via streaming , where innovations such as artificial intelligence were discussed. “We always think about the growth of the activity and of those who practice it,” he added.
In December, representatives of the sector held a meeting with the president of Banco Nación (Daniel Tillard) to discuss issues such as mortgage loans , divisible mortgages and ticket registration , with the commitment to deepen work on these issues. “That is the way: interaction between professionals and the institutions that represent them,” said Colao, and warned that the current debate does not aim at simple deregulation, but at “deprofessionalization,” which would allow anyone to practice without the necessary qualifications. “It will cause a crude comparison, it would be like equating a doctor with a quack ,” he concluded.
www.buysellba.com
