Property Dealers Law - Official Gazette No. 786, published 1999/08/05 (1420/04/22 A.P.)

Article 1: The present law has been enacted for the purpose of establishing and regulating activities related to property dealers (Estate Agents).

(1) The business of property dealers (estate agents) is a non-governmental business carried out with the permission of the Emirate in accordance with provisions of the present law.

(2) The holder of the proprietorship of the business of a property dealer (estate agent) shall be a legally qualified individual who after obtaining license in accordance with terms and conditions stipulated by this law can mediate in all kinds of legal transactions in regard to movable and immovable properties, as well as in regard to transportation means to be concluded between the seller and the buyer.

(1) The license for the business of property dealers (estate agents) is a printed legal document the format and contents of which shall be arranged by the ministry of justice of the Islamic Emirate of Afghanistan and shall be granted to a qualified applicant.

(2) The price of the application form for obtaining license stipulated under clause one of the present article is Afghanis 5000.

(1) Legally capable persons can carry out the business of property dealers (estate agents) individually or as a company.

The holder of the proprietorship of the business of a property dealer (estate agent) is eligible to receive a specified commission foreseen in the present law for rendering mediation services in concluding transactions stipulated under clause (2) of the present law.

A person having the following qualifications can establish the office as property dealer (estate agent) and can carry out the related activities if he:

The following persons can not establish and carry out the business of property dealers (estate agents):

(1) A person wishing to pursue the business of a property dealer (estate agent) shall submit a written application containing complete information on his identity to the relevant department of the ministry of justice.

(2) The relevant department of the ministry of justice is obligated to collect, as usual, information on his criminal, civil and financial non-liability from the relevant authorities.

(3) The relevant department of the ministry of justice, after confirming non-liability of the applicant as stipulated under clause two of the present article, shall register complete biographical data of the applicant, and with due regard to his turn in the submission of the application and with due consideration of the provisions stipulated by the present law, shall officially grant him the permission to establish his office and carry out the activities as a property dealer (estate agent).

(1) The license of property dealers (estate agents) has been divided into the following categories and shall be granted to the applicant fulfilling qualifications stipulated under the present law upon payment of a definite royalty fee:

(2) Licenses issued to property dealers (estate agents) shall be renewed each year following settlement of the entire financial liabilities as follows:

(3) The owners of property dealers business (estate agents) can not pursue the profession of property dealers (estate agents) in contradiction with the contents of the license as stipulated under clause one of this article.

(4) Where the license is not renewed within 15 days at the end of one year, the holder of the license shall be subject to disciplinary action in addition to application of the regulation stipulated under clause (2) of this article.

(5) In case of loss of license, the duplicate thereof shall be granted upon payment of the amount mentioned under clause (2) of article 3 and clause (1) of article 9 of the present law.

(1) The holder of the proprietorship of property dealers (estate agents) business shall be subject to pay income tax in accordance with provisions of the law;

(2) The ministry of finance shall be obligated to take effective and necessary measures in respect of collecting income taxes from property dealers (estate agents) in accordance with the provisions of the income tax law.

Rights and obligations of the holder of proprietorship of a property dealer (estate agent) office

(1) Holder of the proprietorship of a property dealer (estate agent) office shall keep well-arranged books for the purpose of registering his day-to-day activities in accordance with conditions acceptable to judicial and financial authorities;

(2) The first and last pages of a property dealer’s (estate agent) book shall be sealed and marked by the relevant department.

The certified copy (photocopy) of the lost deed shall be submitted to the court at the claimant’s own expense.

(1) The deed exchanged between seller and buyer through the office of a property dealer (estate agent) shall be valid for the relevant courts as a customary deed without forgery and deceit in accordance with the provisions of the law and under the following conditions:

1. It bears the fingerprints and signatures of the parties, seal and signature of the office of property dealer (estate agent);

2. It has been registered in the property dealer’s (estate agent) book with the fingerprints and signatures of the parties, as well as with the seal of property dealer (estate agent) without crisscrossing;

(2) The sale deed of transportation means once sold out through property dealer (estate agent) shall be recorded by the relevant court upon payment of relevant taxes otherwise the contents of a secondary sale document prepared by property dealer (estate agent) shall be invalid for the courts in the event of a claim. Where property dealer (estate agent) takes such an action he shall be held responsible in accordance with the law provisions.

Commission of a property dealer’s (estate agent) office in view of value of the object of irrevocable, mortgage and lease transactions shall be paid equally by the concluding parties as follows:

1- Afghanis forty thousands if the value of the object of transaction is between five hundred thousands and three million Afghanis;

2- Afghanis eighty thousands if the value of the object of sale transaction is more than 3 million and up to 10 million Afghanis;

3- Afghanis one hundred ten thousands if the value of the object of transaction is more than ten million and up to thirty million Afghanis; and

4- Afghanis one hundred thirty thousands if the value of the object of transaction is above thirty million Afghanis.

1- Afghanis thirty thousands if the object of transaction is between five hundred thousands and three million Afghanis;

2- Afghanis fifty thousands if the object of transaction is above three and up to seven million Afghanis;

3- Afghanis seventy thousands if the object of transaction is above seven million Afghanis.

1- One-third of the first month rental if monthly rental of the property is up to twenty thousand Afghanis;

2- One-forth of the first month rental if monthly rental of the property is above twenty thousands and up to forty thousand Afghanis;

3- Afghanis fifteen thousands only if monthly rental of the property is above forty thousand Afghanis.

Property dealers (estate agents) shall only be considered eligible to receive commission for mediation as stipulated under clauses (1, 2 and 3) of the present article provided the transaction is concluded in its entirety.

(1) A property dealer (estate agent) has the right to claim, albeit for one time only, its commission from the customer for a pledge on his part to render mediation services against granting of a printed card the format and contents of which shall be defined by the issuing department as follows:

1- Afghanis one thousand five hundred for a pledge on his part to render mediation services in respect of irrevocable transactions;

2- Afghanis one thousand for a pledge on his part to render mediation services in respect of mortgage transactions; and

3- Afghanis five hundred for a pledge on his part to render mediation services in respect of lease transactions.

The commission of property dealers (estate agents) for safeguarding transportation means and other machinery shall be determined through mutual agreement between customer and the property dealer (estate agent).

The office of a property dealer (estate agent) shall not be established at a residence.

1- The office of a property dealer (estate agent) shall have the same signboard as stipulated in the license; and

2- The office of a property dealer (estate agent) shall have a special seal, which shall be provided to the property dealer (estate agent) at his own expense after being approved by the ministry of justice.

(1) In the event that a property dealer (estate agent) loses his legal status and/or forsakes the business as a property dealer (estate agent), his license shall terminate and shall not be transferred.

(2) If a holder of license dies, his heir who fulfills qualifications stipulated under article 6 of the present law can carry on the business of a property dealer (estate agent) by obtaining a new license.

(3) The provision stipulated under clauses (1 and 2) shall be valid provided the issue has already been communicated to the relevant department of the ministry of justice issuing licenses to property dealers (estate agents).

A lawsuit resulting from dispute over commission between the office of a property dealer (estate agent) and its customers shall not, in the absence of a legal excuse, be adjudicated after lapse of one year.

Lawsuits resulting from dispute over the issues related to property transactions shall be settled by the relevant courts in accordance with law provisions.

(1) Where a party to the transaction complains about illegal performance of a property dealer (estate agent), the holder of the license shall accordingly be subject to the following disciplinary actions at the discretion of the ministry of justice:

(2) Where property dealer (estate agent) repeatedly commits violation, termination of his business and/or cancellation of his license shall take place by verdict of a competent court after notifying the relevant department of the prosecutor’s office.

(3) Other violations of the provisions stipulated under the present law shall be investigated in accordance with rules and regulations enforced in the country.

(1) Where a person, other than the holder of the proprietorship, makes use of the office of a property dealer (estate agent), and if proved, he shall be dealt with as a deceitful person in accordance with the law provisions.

(2) Any sale and lease transaction, which is against the provisions of the present law and which is concluded by a property dealer (estate agent), shall be legally invalid.

The relevant department of the ministry of justice issuing licenses to property dealers (estate agents) shall register the license of a property dealer in due consideration of the provisions stipulated by the present law and shall write down the activity location of a property dealer’s (estate agent) office therein.

The department issuing licenses shall record in a particular book issues related to short biographies and work records, as well as application of disciplinary actions foreseen in the present law in respect of the holders of licenses as property dealers (estate agents).

The relevant department of the ministry of justice issuing licenses to property dealers (estate agents) shall have a special seal and specific registration books.

Where the revenues resulting from implementing the present law are not deposited into the definite bank account of the Emirate in due time, the responsible official shall be subject to disciplinary action on account of the delay.

(1) Persons who were carrying out property dealers (estate agents) business prior to enforcement of the present law can continue their activities by obtaining license and by the renewal of the registration thereof provided they fulfill qualifications stipulated under the provisions of the present law.

(2) The office of a property dealer (estate agent) shall officially be closed down provided he does not fulfill qualifications stipulated by the present law.

(3) The police, intelligence and municipality departments shall be obligated to close down, at the discretion of the ministry of justice, unauthorized offices in the center and provinces within one month of the enforcement of the present law.

The present law shall be enforced beginning with the date on which it has been passed and shall be published in the official gazette.

Department for Defending Emirate Properties
General Directorate, Property Dealers

Identity of the license holder

First and last name

Father’s name

ID number

Present Residence

Education Degree

Age

Title of Property dealer

Address

Phone #

License category

Valid until

Remarks

Precinct or Village

District

Province

1^st

2^nd

3rd

This is to certify that Mr. , s/o , has the legal capacity and this document has been granted him in accordance with the property dealers (estate agents) law, so that he may enjoy the legal rights thereof.

Department for Defending Emirate Properties
General Directorate, Property Dealers

Identity of the Applicant

First and last name

Father’s name

ID number

Present Residence

Education Degree

Age

Title of Property dealer

Address

Phone #

License category

Precinct or Village

District

Province

1^st

2^nd

3^rd

This form has been prepared based on the provision set forth in clause 3, article 8 of the property dealers (estate agents) law.

Signature of the General Director, Department of
Property Dealers (Estate Agents)

Criminal Department, Ministry of Interior (Non-criminal liability)	Ministry of Education or Ministry of Higher Education (Education degree)	Kabul (Mostofiyat) (Non-financial or civil liability)	Law Departments (legal liability)	Civil and Military Human resources Departments

Presidential Decree concerning Amendment and Deletion of a number of Articles of Property Dealers (Estate Agents) Law

Clause (1) of article 2; articles 3 and 4; section (6) of article 6; clause (2) of article8; article 8 and 11; clause (1) of article 13; article 14 and clause (1) of article 22 of Property Dealers (Estate Agents) Law, published in the official gazette # (786), dated 22/04/1420 (LH), shall be amended as follow, and article 15 of the Law shall be deleted:

1- Clause (1) of article 2: Property Dealers (Estate Agents) is a private business and can be established by obtaining official license in accordance with the provisions of the present law.

2- Article 3: (1) The license of property dealers (estate agents) is a legal, printed and valuable document the format and contents of which have been arranged by the ministry of justice and shall be granted to qualified individuals upon payment of the amount of (15) Afghanis; (2) the license stipulated under clause (1) of the present article bears the state emblem, has been prepared by the relevant department of the ministry of justice and bears the serial number; and (3) the price of initial information form for the purpose of granting the license stipulated under clause (1) of the present article is (10) Afghanis.

3- Article 4: Persons fulfilling qualifications stipulated by the present law can carry out property dealers (estate agents) business individually.

4- Section (6) of article 6: Knowledge of rudiments of the civil law, and especially of the property dealers (estate agents) law.

5- Clause (2) of article 8: The relevant department of the ministry of justice shall, as usual, collect information on criminal, civil, and financial non-liability of the applicant from relevant authorities using the initial information form stipulated under clause (3) of article 3 of the present law.

6- Article 9: (1) The license of property dealers (estate agents) concluding transactions in respect of real-estates and transportation means, shall be granted to the applicant fulfilling qualifications stipulated by the present law upon payment of the royalty fee of (1000) Afghanis; (2) license of property dealer (estate agent) shall be renewed annually after settlement of the entire financial liabilities and upon payment of (500) Afghanis; (3) where the license is not renewed within one month of lapse of one year, the holder shall also be subject to a fine of (100) Afghanis in addition to payment of the amount stipulated under clause (2) of the present article; (4) in the event a license is lost, the duplicate thereof shall be granted after being announced through the mass media and

upon payment of the amount stipulated under clause (1) of article 3 and clause (1) of article 9 of the present law; (5) where the license is not renewed within 3 months of lapse of one year, office of the property dealer (estate agent) shall be closed down for a period of three months; (6) where the holder of property dealer (estate agent) proprietorship does not perform activities for a period of one year without written notification, he shall be deprived of the royalty of his license. In case the holder of the license makes a recourse, the license can be granted in compliance with the provisions stipulated under clauses (1 and 3) of article 3, clause (2) of article 8 and clause (1) of article 9 of the present law; (7) the holder of a property dealer (estate agent) license, after making an announcement through the mass media and after notifying the relevant department of the ministry of justice in writing, can move his office to another location; and (8) holder of the license can not do other business in the property dealer (estate agent) office.

7- Article 11: (1) Holder of the license is obligated to regularly keep the book prepared by the ministry of justice for the purpose of registering relevant activities, which shall be provided to him against a definite price. The first and last pages of the book shall be sealed and marked by the relevant department; (2) the format of the deed exchanged between seller and buyer shall be prepared by the ministry of justice and shall be provided to the license holder in three copies at his own expense; and (3) activities of the holder of license in the absence of the deed stipulated under clause (2) of this article, shall be invalid.

8- Article 13: The deed exchanged between seller and buyer through a property dealer (estate agent) shall, in accordance with the provisions of the law, be valid to the relevant courts as a customary deed void of forgery and deceit under the following conditions:

9- Article 14: (1) Commission of a property dealer (estate agent) in view of price of the object of an irrevocable, mortgage and/or lease transaction is only one per cent and shall be paid equally by the parties concluding the transaction (half per cent by the seller and half per cent by the customer); (2) a property dealer (estate agent) shall be eligible to receive commission for mediation stipulated under clause (1) of this article provided the transaction is concluded in its entirety; (3) where the object of transaction is rejected by the customer on account of defect, the property dealer (estate agent) shall return the commission received by him to the parties concluding the transaction; and (4) the commission stipulated under this article shall be clearly written in the deed exchanged between seller and buyer.

10- Clause (1) of article 22: Where holder of the license performs his activities in contradiction with the provisions of the present law, he shall be subject to one of the following disciplinary actions by the president of the department of defending state properties to be proposed by the relevant department:

Closing the office of a property dealer (estate agent) for a period of more than one month and up to 3 months shall take place when proposed by the relevant department and upon approval by the minister of justice.

This decree shall be enforced beginning with the date on which it is passed and shall be published in the official gazette.

Afghan Laws

Property Dealers Law - Official Gazette No. 786, published 1999/08/05 (1420/04/22 A.P.)