The Chamber of Real Estate Agents would have established the percentages or amounts of commissions that real estate agents would charge for their services.
The National Directorate for Investigation and Promotion of Free Competition (DLC) of Indecopi reported that it initiated an administrative sanction procedure (PAS) against the Chamber of Registered Real Estate Agents of Peru (CAIRP), for the presumed making anti-competitive recommendations to establish percentages or amounts of commissions between competing real estate agents.
According to Resolution No. 0121-2022/DLC-INDECOPI, the CAIRP Internal Regulations would have recommended to its associates – real estate agents registered with the Ministry of Housing, Construction and Sanitation (MVCS)–, that their fees are set on the basis of certain percentages or amounts, both for real estate sales and rental operations. “This regulation would have been disseminated by CAIRP on its website and, in addition, communicated directly to its associates at the time of joining the association,” it is detailed.
Likewise, this presumed recommendation would have also been included in the Single Code of Ethics approved by CAIRP, disseminated since September 7, 2016 through its website www.cairp.com.pe and communicated to its associates.
According to information from the Central Reserve Bank of Peru (BCRP), between 2016 and 2022, the average sale price (per square meter) of the apartments went from US$1,623 to US$1,812, which represented an increase of 11.6%. Taking into account that the commissions paid to real estate agents are calculated on the sale price, the recommendation could have made the value of homes on the market even more expensive.
“The initiation of a sanctioning administrative procedure is based on the existence of reasonable indications about the realization of an alleged anticompetitive conduct and it does not constitute a prejudgment about the result of the procedure or the responsibility of the investigated association, which has the right to formulate the defenses and defenses that it deems pertinent to attend to its rights”, Indecopi pointed out through a statement.
Source: Larepublica
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