2026-05-20
In recent years, the real estate market of the Republic of Armenia has become one of the most active sectors of the economy. Alongside the growth of market activity, a number of structural problems have also emerged, including informal brokerage, repeated and even fake listings of the same property on different platforms, incomplete information, as well as the absence of unified professional standards for realtor activity.
The purpose of the presented legislative regulation is to establish unified rules for carrying out realtor activity, which will be supervised and regulated by the State Cadastre Committee, thereby creating a more controlled and accountable environment in the real estate market. The law regulates the conditions for carrying out realtor activity, contractual relations, and its subjects by granting them qualifications and ensuring a more professional operating environment, as well as a number of processes related to real estate management.
Overall, the law aims to form a more systematic, controllable, and uniformly regulated real estate market.
In order to understand the logic behind the application of the law, it is important to distinguish the key concepts and mechanisms through which realtor activity will be regulated. The law not only defines who may engage in realtor activity, but also regulates transaction procedures, data registration, responsibility, and processes related to real estate management.
The law considers realtor activity as a professional entrepreneurial activity that includes the alienation and lease of real estate, the organization of auctions and tenders, as well as services related to real estate management. Thus, within the framework of the law, realtor activity is not limited only to sales intermediation and includes a number of other market processes ranging from leasing to management services.
Based on the logic of defining realtor activity as a professional activity, the law provides for a professional qualification system. A realtor may only be a natural person who has received a realtor qualification certificate and has been registered with the authorized body.
Only individuals with higher education may participate in qualification examinations, and the certificate is issued for a period of 5 years. After the expiration of the certificate, the realtor must once again participate in the qualification examination in order to receive a new certificate.
For example, if previously any individual could engage in real estate brokerage without professional status, under the new regulation realtor activity becomes connected with professional qualification and state registration.
In order to ensure the implementation of the professional qualification system, the law also provides for the establishment of a qualification commission. The commission organizes professional examinations for realtors, prepares questionnaires, and evaluates examination results.
The commission includes:
• 2 representatives of the authorized body,
• 3 representatives of higher educational institutions,
• 2 qualified realtors on a rotational basis.
The examination questionnaires are published at least 30 days before the examination, and the examination process is video recorded.
In order to ensure the registration and controllability of realtor activity, the law provides for the introduction of a unified information system. Information regarding transactions, contracts, and real estate carried out within the framework of realtor and real estate management services is entered into this system.
According to the logic of the law, real estate sales websites will no longer be considered merely independent listing platforms. They must be able to interact with the unified information system and use the data entered there.
The following information must be entered into the system:
• property address,
• cadastral code,
• area,
• sale or lease price,
• term of the service agreement,
• data of the client and service provider.
The law also establishes that service agreements and data not entered into the unified system are considered invalid.
For example, if a real estate company has concluded a service agreement, but it has not been entered into the unified system, then that agreement may be considered null and void.
In order to ensure the controllability of transactions and payments, the law also establishes the use of escrow accounts. An escrow account is a special bank account through which payments, advance payments, and transfers of income generated from management activities related to real estate are carried out.
The law establishes that all payments carried out within the framework of real estate management must be made through escrow accounts, and in the event of violation of this requirement, the transaction may be considered invalid.
For example, if a management organization leases out an apartment, then rental payments are transferred through a special account stipulated by the agreement, after which the corresponding amounts are transferred to the owner.
Within the framework of realtor activity, the law also provides for the possibility of applying liability insurance. According to the logic of the law, insurance mechanisms may be applied by agreement of the parties and included in the contract for the provision of realtor services.
In this case, the subject of insurance is not the real estate itself, but the professional liability of the realtor or real estate company and possible property damage arising from their activities.
The law provides that provisions regarding insurance may be fixed in the service agreement, including information about the insurer, the insurance amount, and insured risks.
The law allows for the inclusion of legal and documentary review (Due Diligence) of property within the framework of realtor services through contractual agreement. It relates to the examination of rights, restrictions, and possible legal risks associated with the property.
For example, before the transaction is carried out, the following may be checked:
• whether there are restrictions on the property,
• whether there are court disputes,
• whether third-party rights exist,
• whether the documents correspond to state registration data.
Within the framework of organizing transactional relations, the law also provides for the possibility of exclusivity in realtor services. In that case, services may only be provided to the given client by the realtor or organization specified in the agreement. The law establishes that the maximum term of an exclusive agreement may not exceed 6 months, except in cases involving newly constructed real estate.
The law separately regulates real estate management services. These include property operation, lease organization, advertising, renovation, and maintenance work. At the same time, the law clearly establishes that this regulation does not include fiduciary management of property. The law also establishes that the maximum term of a real estate management agreement may not exceed 3 years.
For example, a management organization may engage in leasing, servicing, and operating an apartment on behalf of the owner, but it is not considered the legal administrator of the property and does not obtain ownership rights over it.
One of the important changes in the law relates to the procedures operating in the real estate market and the logic of transaction organization. Whereas until now a significant part of the market operated through informal agreements, listings placed on different platforms, and partially registered intermediary transactions, the new regulation provides for more formalized, accountable, and digitized processes. According to the logic of the law, the process of selling, leasing, or managing real estate begins with entering the relevant data into the unified information system.
For example, if the owner of an apartment wishes to sell the property through a real estate company, a service agreement is first concluded, after which the data of the property and the agreement are entered into the unified system.
The law establishes that natural and legal persons who are owners of real estate may independently carry out long-term leasing of their own property. At the same time, it follows from the provisions of the law that intermediary processes for the alienation of real estate may be carried out both through registered realtor entities and without the mediation of realtor entities. However, any type of real estate management activity, including short-term daily rentals and systematic income-generating operations, may only be carried out by registered real estate management organizations or managers.
For example, if an owner wishes to lease an apartment to a single tenant on a long-term basis, they may do so independently. However, if the apartment is operated on a daily rental basis through Airbnb, Booking, or similar recurring income models and is carried out as a management activity, then that process must be carried out through a corresponding registered investment property management entity.
The law establishes that contracts concluded within the framework of realtor and real estate management services, as well as data regarding the properties that are the subject of those contracts, must be entered into the unified information system.
The following are subject to entry:
• property address,
• cadastral code,
• area,
• price,
• term of the agreement,
• data of the client and service provider.
The law also establishes that failure to enter such data into the system may result in the agreement being considered invalid.
Under the new regulation, data regarding real estate is first verified against cadastral data, after which it receives the corresponding status. The system is also designed for interoperability with real estate sales websites.
For example, if the sale price of a property changes, that change must be reflected in the unified system.
The law establishes that realtor and real estate management services must be carried out exclusively on the basis of a written agreement. The agreement must contain a number of mandatory data and conditions.
The following are subject to mandatory inclusion:
• the subject of the agreement,
• property identification data,
• the proposed price,
• the service fee,
• the validity period of the agreement,
• the rights and obligations of the parties,
• terms of liability,
• dispute resolution procedures.
The law also allows the agreement to include:
• an obligation for legal and documentary review (Due Diligence),
• a condition for the provision of exclusive services,
• provisions regarding liability insurance.
In the case of real estate management agreements, the law provides for additional procedures. The management agreement may include:
• the technical description of the property,
• photographs,
• utility data,
• the procedure for submitting reports,
• payment implementation mechanisms.
For example, if a management organization undertakes the operation of an apartment on a daily rental basis, the agreement may specify how frequently income reports must be submitted to the owner.
The regulations provided by the law concern not only realtor activity, but also the relationships formed between various participants in the real estate market. The main impact of the regulation is related to the formation of a more accountable, controllable, professional, and digitized market environment.
One of the main impacts of the regulation relates to increasing the controllability, systematization, and accountability of the market by the state. Through the introduction of the unified information system, the state receives a centralized database regarding the real estate market, where data on properties, contracts, prices, management services, and transactions are reflected.
This creates conditions for:
• more systematic market management,
• registration of transactions and services,
• increased data transparency,
• controllability of financial flows,
• tax visibility,
• optimization of state oversight.
The concentration of transactions, contracts, and data within a unified environment makes it possible to form a more complete picture of market activity, price changes, and circulation. This may be used for statistical, supervisory, and analytical purposes.
The law also includes requirements related to combating money laundering and terrorism financing, as a result of which the real estate market becomes more closely connected with financial oversight mechanisms.
For example, if previously real estate data could be presented differently or at different prices across various platforms, under the new regulation a significant portion of the data becomes centralized within the unified information system, where it is verified against state databases.
One of the important impacts of the regulation concerns the formation of a more professional, controllable, and informationally transparent market environment for society and market participants. The law provides that realtor and management services must be carried out on the basis of written agreements, while property-related data must be entered into the unified information system.
This creates conditions for:
• the formation of a more professional and educated market,
• the creation of a correct and unified informational environment regarding property,
• formalization of contractual relations,
• implementation of liability mechanisms,
• reduction of documentary risks,
• increased trust in transactions.
The regulation moves realtor activity into a more professional and accountable field. The law establishes that only persons who have obtained a qualification certificate and are registered with the authorized body may engage in realtor activity.
This creates conditions for:
• the formation of realtor activity as a systematic and recognizable professional field,
• the creation of an official and specialized operational environment,
• increased trust toward services,
• implementation of unified professional standards,
• expansion of liability mechanisms.
In practice, realtor activity is transferred into a more institutional environment where the activity becomes connected not only with mediation, but also with data registration, contractual relations, and in certain cases legal responsibility.
The law also connects realtor activity with the unified information system, mandatory contractual relations, and in certain cases insurance mechanisms.
For example, if a realtor undertakes legal and documentary review of a property, that activity may be accompanied by liability insurance, while transaction data must be mandatorily reflected in the unified system.
The law establishes real estate management as a separately regulated activity. Management services include property operation, lease organization, maintenance, advertising, and income management.
At the same time, the law establishes that only registered real estate management organizations or managers may engage in such activity.
This creates conditions for:
• formalization of the real estate management market,
• organization of daily rental and investment property management,
• formation of accountability mechanisms,
• more controllable implementation of payments,
• professional development of property management services.
Within the framework of management activity, the law also provides for the use of escrow accounts, reporting requirements, and contractual regulation.
This is especially important in cases where property is operated as an income-generating asset through daily rentals or investment models.
For example, if an apartment is operated through Airbnb or Booking platforms on a daily rental basis, that process may be carried out through a registered management organization using reporting, payment, and management mechanisms defined by contract.
Overall, the regulation moves the real estate market into a more formal, accountable, and professional environment. A significant portion of data regarding transactions, contracts, prices, and services becomes connected to the unified information system, while a number of market processes are carried out only through registered and regulated entities.
As a result of the regulation, the market becomes more closely connected with digitized registration, contractual relations, professional activity, and financial oversight mechanisms, as a result of which a number of market processes become more systematic and controllable.
The law also provides regulations regarding the suspension of the validity of a realtor qualification certificate. The validity of the certificate may be suspended on several grounds, including submission of false information, violation of legal requirements, a court verdict that has entered into legal force, and other cases предусмотренные законом.
At the same time, the law establishes that in certain cases of suspension of the qualification certificate, the individual may not apply for a new qualification certificate for one year.
After the expiration of the one-year period, the individual may once again participate in the qualification examination organized by the authorized body and, upon receiving a positive result, obtain a new qualification certificate.
Thus, the law connects realtor activity not only with obtaining qualification, but also with continuous professional oversight and liability mechanisms.
The RA Law “On Realtor Activity” was adopted on February 2, 2026, and entered into force the following day, on February 3, 2026. In order to ensure the practical implementation of the law, the main measures through which the mechanisms provided by the law will be introduced in stages were approved by RA Prime Minister Decision No. 79-A.
Below are the most important stages of the regulation and their implementation deadlines:
| Planned Measure | Implementation Deadline |
|---|---|
| Approval of the procedure for realtor qualification examinations | Draft by 01.08.2026, adoption by 01.11.2026 |
| Introduction of six-month educational programs | By 13.05.2026 |
| Creation of the unified information system | Draft by 30.12.2026, adoption by 01.06.2027 |
| Integration of real estate sales websites with the unified system | Draft by 25.01.2027, adoption by 01.06.2027 |
| Electronic registration of realtors and management companies | Draft by 30.12.2026, adoption by 01.06.2027 |
The presented legislative regulation concerns not only realtor activity, but also the structural and operational environment of the real estate market of the Republic of Armenia as a whole. The law establishes professional activity standards, a unified information system, mandatory contractual relations, as well as separate regulation of real estate management.
As a result of the regulation, a significant part of the market moves into a more formal, accountable, and digitized environment. Data regarding transactions, contracts, prices, and services becomes connected to the unified information system, while a number of market processes are carried out only through registered and regulated entities.
The law also changes the roles and relationships of market participants:
• more systematic oversight and data management mechanisms are created for the state,
• a more professional and informationally controllable environment is formed for society,
• realtor activity is moved into a professional and accountable field,
• real estate management is formed as a separately regulated activity.
At the same time, the regulation connects the market more closely with financial oversight, contractual relations, and digitized registration mechanisms. This is especially expressed through the unified information system, escrow accounts, insurance mechanisms, and regulation of real estate management activity.
Overall, the law forms a more systematic and institutional environment where a number of processes in the real estate market move from informal relations toward a professional, contractual, and accountable field.
Source of data: Arlis.am
Developed and supplemented by RED Invest Group.
