The regulation, in force since December 18, stands out the prohibition for real estate companies to receive upfront money unless they have the permits issued by the regulators. These permissions must be granted by the municipality of the canton where the real estate project will be constructed.
With this, more confidence and security to the money of those interested in investing, shall be provided, according to representatives of the Superintendency. The entity also mentioned that this regulation is not retroactive, but the estate agents that have already received money must have appropriate permissions, otherwise shall be sanctioned.
Jaime Rumbea, director of the Association of Real Estate Companies said that there are shortcomings in the law as it aims to remove illegal sellers imposing new rules to formal sellers.