New laws for estate agents in Spain? We are not sure these rules can be enforced!
Back in 2008, we approached the Orihuela Costa town hall to see if they would work with us in formulating a set of guidelines for estate agents to follow. We had little success but now it appears, the Valencian Government is trying to establish new requirements for the Real Estate Agency activity in the Valencia region.
A new Decree, 98/2022 to be exact from the Valencia Government states the new rules.
The new regulation comes into force this month, October 2022.
The Agent shall have a bank guarantee or insurance to cover the amounts received by the clients. (This is terrific).
The amount guaranteed by them shall be a minimum of 60.000 Euro per office open to the public or per agent.
The amount guaranteed by an agent with no physical office shall be 300.000 Euro per agent. (personally, I think they are trying to put the so-called “street agent” out of business).
The Agent shall have Civil Liability Insurance. The amount insured will be 60.000 Euros per claim with a sub-limit of 150.000 Euros per victim.
* These guarantees and requirements don’t apply to contracts dated before 16th October 2022.
In theory, it will be applicable to the new ones signed from that date.
Real Estate Agencies Registry:
Valencia hopes to create a Real Estate Agency Registry. It would be incredibly positive for property buyers to find out who they can trust this way. Here we are asked all the time…
How can I find an estate agent in Spain I can trust?
The rules will be mandatory for all real estate agencies in Spain, according to the powers that be. We are not convinced they can enforce the rules. They wish to make it mandatory whether the activity is developed with a traditional bricks and mortar office or in a virtual office.
For agents that are exercising the activity currently, the introduction of the new regulation should be submitted before 16th October 2023.
There shall be at least one qualified agent in the Spanish property business. This agent can be in charge of a maximum of 3 real estate offices.
This is the only person who can sign all engagement letters, contracts or mandates from clients.
With this (proposed) regulation, the “Qualified Agent” is the person who fulfils the following.
a) Has the official diploma of Real Estate Agent.
b) Is registered in the Real Estate Agencies bar in Spain.
c) Has a relevant official university diploma or higher in Law, Business administration, Economics, architecture or engineering.
d) Has completed a course by authorised schools or universities.
In the case that the agent is not a director in the company, at least one director must become one.
Office requirements proposed:
The real estate agent shall have one office open to the public fulfilling the applicable regulations in that matter.
There will be newer rules soon, with stronger requirements in guarantees matters to online agencies.
The regulation is still very vague (and unenforceable in many people’s opinion). That said, this new Decree has established the legal base to rule new Real Estate Activity in our region. In theory, it makes sense, we are just worried that it will not work!
We shall see!
If you are an estate agent in Spain worried about how this may impact your business please feel free to get in touch with us here at Spanish solutions.
If you are a property buyer looking not just for a law office to take care of your conveyancing but need an estate agent you can trust, talk to us.