Title: Iran Implements Regional Real Estate Brokerage Fees to Streamline Property Market
In a significant move to regulate the real estate sector, Iranian authorities have introduced a new regionalized fee structure for property consultants. This policy shift, announced by Kianoush Goodarzi, Head of the Tehran Real Estate Consultants Union, aims to bring greater transparency and order to the nation’s property transactions.
A New Regionalized Framework
The decision, stemming from the executive bylaw of a law mandating the official registration of real estate transactions, marks a departure from a previously proposed nationwide fee index. Recognizing the vast disparities in property values across different regions, the government has instead empowered district supervisory commissions, operating under a High Supervisory Board, to set fees tailored to their local markets.
Calculating the Fees
The new brokerage tariffs will be calculated based on key regional metrics, primarily the transactional value of properties in a given area. The official baseline data will be provided by the National Tax Administration. The system is designed to ensure that the new fees are not lower than current rates and may even see increases, provided they do not exceed the maximum cap set by each regional supervisory commission.
Factors influencing the final fee include:
- The property’s location and proximity to urban centers.
- The age and condition of the building.
- Available amenities such as elevators and parking.
Strict Enforcement and Transparency
A cornerstone of the new policy is its stringent enforcement mechanism. Real estate offices are now legally required to adhere strictly to the officially issued fee schedules. Any consultant found charging above the stipulated rates will face severe penalties, which could amount to up to three times the illegally received surplus.
Mr. Goodarzi emphasized that this transparent, value-based calculation method is crucial for building public trust. He stated that the reform, supported by advanced information and monitoring systems, will allow for precise oversight of transactions and effectively curb violations.
Impact on the Housing Market
This regionalized fee system is expected to have a substantial impact on organizing the housing market. By aligning brokerage costs more closely with the actual value of properties, the policy aims to reduce market distortions and foster a more stable and reliable environment for buyers and sellers. The move is seen as a key step in the government’s broader strategy to enhance governance and efficiency within the vital real estate sector.
