Illegal real estate agents thriving because of weak penalties

Concerns have been expressed by the Cyprus Real Estate Agents Registration Council regarding the increasing threat presented by illegal real estate agents who continue to scam oblivious tenants and buyers. The council claims that these unlicensed agents are now expanding their business into the occupied areas and concentrating on homes that have made fraudulent sales.

Although some illegal agents are found guilty, the penalties they receive are not much to be a useful deterrent, as Council President Marinos Kineyirou pointed out. "Despite repeated warnings, buyers and tenants become victims to these scammers, losing significant sums of money, sometimes even their life savings", said Kineyirou.

He emphasized that the problem is persistent and growing. “Our efforts have been substantial, but the situation is escalating,” he said, adding that illegal agents are increasingly targeting refugee properties in the Turkish-occupied areas of Cyprus. "Their sole focus is profit, without any regard for legality or morality," Kineyirou noted.

The council has strengthened its enforcement actions in an effort to address the problem. "We've strengthened our team of inspectors, both in number and expertise, to handle the rising challenge more effectively", he said. The council has also started public awareness efforts to inform the public about the dangers of dealing with unregistered agents and how to confirm the legality of an agent. Buyers can use the website of the council as a reference to determine whether a property is offered by a licensed agent.

Furthermore, Kineyirou made it quite clear that approved representatives who aid illegal practitioners would face terrible consequences. "We have made it clear that we will not tolerate any form of cooperation with these offenders", he stated.

The council’s intensified efforts seem to be paying off, with more people now contacting the council to verify the credentials of real estate agents, leading to an increase in the number of illegal agents being prosecuted. In the last two years alone, the council has initiated around 627 criminal cases against individuals and companies breaking real estate laws.

So far, 40 companies and 90 individuals have been convicted, but many more cases are still pending. However, Kineyirou expressed frustration with the justice system, pointing out that the penalties imposed, fines between €150 and €200, are not enough to deter repeat offenders. While the law allows for fines up to €3,500 or imprisonment for up to 12 months, these harsher sentences are rarely enforced.

"Unfortunately, we find that after paying these minimal fines, many illegal agents simply return to their unlawful practices", Kineyirou explained, adding that the council has had to bring some individuals back to court repeatedly.

Notwithstanding all of this, Kineyirou acknowledged that the current legal framework is sufficient to prosecute illegal agents but said that loopholes have been exploited. He made reference to a recent incident in which an Israeli national was detained for engaging in illegal property transactions in both the occupied and free areas of Cyprus. "We are now at a point where illegal agents are expanding their operations to the north, taking Greek Cypriot properties in the occupied territories", he said.

In order to preserve the profession and protect citizens, Kineyirou reaffirmed the council's commitment to addressing this issue and urged the public and government to support these efforts. He declared, "We will not give up or permit illegal agents to damage the reputation of licensed professionals".

In conclusion, Kineyirou warned that anyone involved in transactions with illegal agents, whether buying or selling property, is also committing a criminal offence and will be prosecuted. The council remains ready to work with the government on strengthening measures to fight illegal practices in the real estate industry.