Real Estate Agencies Sold Houses Worth Kd 119 Million During First Half Of 2021

The total residential real estate transactions through real estate agencies amounted to KD 119 million during the first half of 2021, as 349 housing units were sold, compared to transactions worth KD 19 million, during the same period in 2020, a growth of 526 percent, Al Jarida reported.

This large jump in the volume of residential transactions in real estate agencies is because the first half of last year witnessed low trading as a result of closures and health measures taken by the government to confront the Corona pandemic.

The agencies are considered a major gateway to speculation in the residential sector, as it is characterized by time take for the sale process, in addition, that it does not require a description certificate from the Kuwait Municipality, meaning that the violating properties can be sold through the real estate agency.

The agencies are also used to escape from paying the real estate registration fees, which amount to 0.5 percent, as its fees are fixed regardless of the property price, at a value of KD 500 for properties priced at KD 100,000 and above, and KD 250 for properties less than the mentioned price, and according to current prices, it is Certainly, the registration fee is much higher than the real estate agency fee.

Also, housing applicants can use the real estate agency to own real estate without canceling the housing students, because the real estate is not registered in the Real Estate Registration Department, and the agent can dispose of the real estate and sell it in the same way.

The real estate agency bears many risks, including that in the event of financial issues against the principal, and there are legal procedures against him, the property sold through the real estate agent can be seized, and this directly harms the agent or the buyer of the property.

On the other hand, some considered that the real estate agency was a major reason for the speculation that took place on residential real estate, because the sale process takes place within a very short period if compared to the free document method, which may reach a period of a month or more.

The real estate agency is also part of the reasons for the rise in residential real estate, because it made it easier for speculators to buy and monopolize land and real estate, and then offer them for sale at higher prices, with lower fees.

Some real estate agents point out that the real estate agency system is only applied in the State of Kuwait, and this has resulted in many problems among citizens, as the agent may lose his property if the property of the client is seized.

They stated that it is better to cancel the real estate agency system, and facilitate the procedures for transferring real estate directly, to eliminate speculation and manipulation by some, explaining that the transfer of a real estate document currently takes up to months, and this period is very long, which may result in many variables in prices.

The National Assembly had issued a law raising the real estate agency fees to KD 500 after it was ten dinars, and before that, it was two dinars per transaction, after the market witnessed many problems as a result of dealing with the real estate agency.

 

SOURCE  :   TIMES KUWAIT

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