Citizens are urged to be extremely cautious in any dealings involving the purchase or rental of houses and flats so that they do not fall victim to fraud. Hundreds of unsuspecting people have been deceived by individuals posing as estate agents. These fraudsters have sold or resold plots and homes that did not belong to them, attempted to rent out properties owned by others through online advertisements, taken deposits and vanished, agreed one thing and delivered another in property transactions, and in many cases collected commissions and disappeared.
The competent supervisory body, the Council of Registration of Estate Agents, records on average three to five criminal cases each day against offenders involved in illegal estate agency. The problem, however, continues to exist and is becoming more acute, creating serious distortions in the property sector as well as unfair competition for professional agents. Many such cases reach the Council daily following complaints lodged by licensed estate agents and citizens.
On inspection teams
According to the President of the Council for Registration of Real Estate Agents Cyprus Council, Marinos Kineyirou, the Council follows a policy of zero tolerance towards illegal estate agency. He stated that this is not merely a slogan but daily practice. On average, three to five criminal cases are filed every day.
He explained that over the past three years the Council’s inspection team has been strengthened both in terms of numbers and expertise, with the aim of identifying offenders and filing criminal cases against them, whether individuals or companies. Additional inspectors have been recruited in all districts of the Republic of Cyprus in order to tighten controls on those who exploit the public and undermine licensed estate agents. The Council has increased its effectiveness and is now identifying illegal activity at its source.
He added that the Disciplinary Committee has been activated to examine internal matters, and that the Council publishes the names of those convicted of illegal estate agency for the sake of transparency and deterrence. Applications for registration or licence renewal have also been rejected in cases where a relationship between an individual and a company was found to be fictitious. Combating illegal estate agency is therefore pursued through strict controls, transparency and cooperation with all relevant authorities.
With approval from the Commissioner for the Protection of Personal Data, the Council of Registration of Estate Agents publishes on its website the names of individuals and legal entities convicted of illegal estate agency. On the same website, the public can find all properties available for sale or rent through licensed agents, providing an essential safeguard for consumers during the buying or renting process.
Alarming growth
The phenomenon of unlicensed estate agency has reached alarming proportions in recent years for two main reasons:
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Increasing numbers of individuals seek easy and fast profit, often undeclared.
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Significant delays occur in the hearing of cases submitted to the courts by the Council, combined with lenient penalties. This acts as an obstacle to effectively combating illegal estate agency.
As for the penalties imposed by the courts, in most cases they are limited to monetary fines of a few hundred euros, which fail to act as a deterrent. On the contrary, offenders can readily recoup such amounts many times over through a single illegal transaction.
It should be noted that the existing legislation, specifically the Estate Agents Law, gives the courts the authority to impose prison sentences of up to one year in cases where the offence is repeated. Furthermore, in addition to punishment, the court may, after assessing the likelihood of future offences, order the convicted person, whether an individual or a legal entity, to cease any activities related to the offence or even to close the office or premises where the illegal activity took place.
Complaints and prosecutions
Official statistics from the Council of Registration of Estate Agents clearly demonstrate the scale of illegal activity in the property market.
From 2023 to the present, which represents the term of the current Council, a total of 565 criminal cases were filed against individuals and legal entities in breach of the Estate Agents Law. During the same period, 75 legal entities and 130 individuals were tried and convicted for illegal estate agency in relation to 175 criminal cases, while hundreds of other cases remain pending.
In the previous years, when Marinos Kynaigerou was also chair of the Council, the following criminal prosecutions took place:
• In 2022, 460 criminal cases were filed. A total of 25 legal entities and 45 individuals were convicted in connection with 55 cases.
• In 2021, the District Courts issued convictions in 50 criminal cases against 20 legal entities and 55 individuals.
• In 2020, 22 legal entities and 40 individuals were convicted in 37 cases.
• In 2019, 15 legal entities and 30 individuals were convicted in 28 cases.
• In 2018, the courts issued 25 convictions against 10 legal entities and 25 individuals for illegal practice of the profession.
Citizens encouraged to report offenders
According to the chair of the Council, the best way for citizens to protect themselves is to ask for the details of the estate agent and check whether they are registered with the Council.
Customers should request proof such as the current year’s professional licence or identification card issued by the Council. The aim is to verify that they are dealing with a licensed estate agent. The large number of cases brought before the courts demonstrates that the Council is not relying on words but on actions.
Aside from safeguarding the profession, the primary aim is to protect unsuspecting citizens who risk falling victim to fraudsters and losing money or lifelong savings, something that has unfortunately happened many times.