Real estate brokers
Since the privatization of state properties, and formation of a private sector in Mongolia in 1990s, real estate brokers have operated without any integrated supervision. The related sector has been considered as ‘high risk’ in terms of money laundering and the financing terrorism by the Financial Action Task Force (FATF) and prompted Mongolia’s inclusion in the list of countries with strategic deficiencies in AML/CFT. Mongolia is therefore required to improve policies, strategies and regulations in this sector. Accordingly, amendments have been made in the Law on the Legal Status of the FRC and the Law on Licensing (17 January, 2020), authorizing the FRC to regulate and supervise activities of Real Estate Brokers.
The following were duly approved:
• Resolution No. 120 of 2020 on procedures for licensing, permitting, authorization and registration of REBs;
• Resolution No. 121 on the amount of the regulatory service fee; and
• Resolution No. 181 on procedures for off-site and on-site inspections on activities of REBs.
In 2020, licenses were issued to 167 new REBs.
Nearly a third (28.7%) of entities with licenses in Ulaanbaatar were in Sukhbaatar district, 24.5% in KhanUul, 16.2% in Chingeltei, 16.2% in Bayanzurkh, 10.8% in Bayangol, and 1.8% in Songinokhairkhan district. Three entities (1.8%) were in the provinces.
In 2020, 215 REBs sold and bought real estate with the total size of 610,300 m2 and a value of MNT281.9 billion.
In 2020, 126 REBs/agents rented and leased real estate with the total size of 88,600 m2 and a value of MNT39.9 billion.In 2020, 126 REBs/agents rented and leased real estate with the total size of 88,600 m2 and a value of MNT39.9 billion.
The total share capital of 230 shareholders of entities with licenses was MNT19.8 billion.
In 2020, total assets of REAs was MNT43.7 billion, and net income was MNT0.17 billion.