LAWBIRD LEGAL SERVICES
Friday 29th August 2008
This law was passed almost three years ago but it has only been recently that the broad public, particularly some Estate Agencies, have been made aware of it due to the hefty fines imposed by the Junta de Andalucía's inspectors.
Where is it enforced ?
Only in Andalucía. All properties located in that region are subject to it.
What does it rule ?
It rules the documents & information that is mandatory to be supplied to prospective tenants and property purchasers (regarded as consumers) on the sale and let of properties located in the autonomous region of Andalucía (Art. 1).
Basically this law is part of the Consumer’s legislation which has been enacted to further protect and ensure the rights of all consumers in Andalucía. It complements the National Consumer Law embodyment.
Who does it apply to ?
It applies to all professional intermediaries such as Real Estate Agencies, sole Estate Agents and developers (Art. 3) on selling and letting properties located in Andalucía.
In which cases is it not applied ?
It is not applied in administrative, public or judicial auctions (Art. 3).
Whose the beneficiary of this law ?
Consumers at large and the broader real estate market ultimately. All those prospective buyers and tenants of properties in Andalucía will do so in a safer legal framework.
Where can I find this law in Spanish ?
Just click on the thread's title.
Brief Legal Overview of Decree 218/2005
It is a fairly short law of only 15 articles.
See bullet point above (What does it rule ?
It defines basic concepts such as built surface, usable surface, dwelling price, taxes etc
As previously mentioned (Who does it appy to?
) it specifies who is obliged under law to comply with this decree. Estate Agents, Estate Agencies, professional intermediaries, developers. It also applies on selling VPO (government subsidized housing)
It basically lays out the general principle that all information provided must be true and not misleading in anyway
The information supplied must include the following:
• Specify If the dwelling is under construction or completed already
• Dwelling's exact location
• Developer’s identification details
• Number of dwellings built
• Number of bedrooms, detailing usable surface each have
• If the sales price is mentioned then it is mandatory that all taxes and other expenses are as well detailed alongside the sales price
• If the rental is mentioned then it is mandatory to supply as well the Community Fees
• When buying off-plan property, and stage payments are involved, it is mandatory to include in the contract that said amounts will be secured under law, the name of the bank, number of the Insurance Policy or Bank Guarantee
, the existence of a special bank account where the funds will be allocated and the client code. It must be specified if the funds are handed over as a stage payment or else as part of the price and as a deposit to strike the property off the market
• The consumer has a right to be handed the Documento Informativo Abreviado
or DIA for short (it’s the Spanish equivalent of the UK’s HPI
, Home Purchase Information, or Seller’s pack)
Art 6.- DIA
Developer’s or intermediaries such as Estate Agents are obliged to deliver free of charge in Andalucía the DIA’s.
DIA’s will include the following information:
• Full name and social address of the developer as well as the company registrar details or that of any physical or company that is acting as an agent
• Details of architect, and construction company
• Detailed and scaled plan of the development with a minimum scale of 1:100
• Usable surface of the dwelling and it’s annexes (such as garage and store rooms)
• Physical description of the dwelling and it’s annexes as well as that of the utility connections (water, electricity, gas, sewage grid etc) as well as fire protection
• General description of the building and or development, the communal areas, and the available services
• Memorandum of Quality of the materials used in the construction
• Dwelling price as well as the associated expenses and applicable taxes, means of payment and deadlines to comply with them
• Mention to the consumer that there is available an explanation of a breakdown of expenses and taxes at his sole request
• When stage payments are involved it is mandatory to mention the existence of a Bank Guarantee
• Mention of the plot of land's Title deed, of any leans and encumbrances on it and the Building Licence under which they are entitled to build on site
• Mention of the availability of a copy of the Building Licence at the sole request of the consumer
• Mention of the stage of construction of the development
• Mention of the delivery date of the property, it’s annexes (garages, store rooms) as well as those of the development’s communal areas. Said deadline must be referred to quarterly within a year
• Mention of leans and charges on the dwelling or annexes or it’s access points (i.e. a Right of Way or Right of Views)
• Mention that the consumer does not have to pay for not taking on the developer’s mortgage if he decides to take another
• Consumer's right to elect a Notary on whom one cannot be imposed by the vendor
• The capacity for both parties to compel each other to complete the contract before a Notary
• The right of the consumer to be handed -free of charge- a template of the Private Purchase Contract to be signed for their perusal
• Place where all the documents included in this list are available for inspection at the Consumer's request
• Place, date and signature
Art 7.- DIA in off-plan properties.
• Besides including all the above, a full mention of all the administrative licences available must be included, namely Building Licence and First Occupancy Licence
. If they are not available at the time they commit themselves to obtain them in the shortest notice possible
• Property's delivery date
• Land Registry details of the properties if available as well as of the lines and encumbrances
• Community By-laws (which further develop Spain’s Commonhold Law aka as Horizontal Property Division Law)
• Mention of the “Libro del Edificio” (more concrete specifications on the building itself)
• Mention of the mandatory Ten-Year Building Insurance (“Seguro Decenal”)
Requirements EA must comply with.
Details of the documents that must be handed over in off-plans.
Details to be supplied in resale properties
• Property address
• General description of property
• Sales price complying with art 2 of this Decree
• Construction year
• Community of Owner's fee
• Mention of utilities which are available at the time
• Certificate proving vendor's IBI tax compliance
Art. 11 DIA for lets
• Name and social address and Company Registrar details of Landlord or Estate Agency acting as the intermediary
• Total built surface of the dwelling and that of it’s annexes
• General description of the property to be let including available utilities as well as fire protection devices
• Furniture inventory, kitchen appliances etc within the dwelling
• General description of the building or development where the property is located
• Specific mention of the agreed rental as well as that of the annexes, payments terms etc
• Under Spain's Rental Law (LAU) the tenant is obliged to deposit a minimum of one month’s rental as well as the inclusion of any other guarantee the Landlord may deem fit such as Rental Bank Guarantee
• Full disclosure of the Estate Agency's commission for their professional service
• Mention the property complies fully with all administrative licences mandatory under law (i.e. BL, LFO)
• Availability of the Community of Owner's By-laws at his sole request
• Mention how the contract will be formalised
• Community of Owner’s administrator contact details
• Upkeep rules of the household installations if applicable
• Place, date and signature
This document (Rental DIA
) can be supplied prior to formalising the rental contract at the consumer's sole request free of charge and in any case it is compulsory to supply it simultaneous to the signing of the Tenancy Contract.
All premises in which a professional activity of selling or letting (i.e. Estate Agents or developers) must have a very visible notice with the following message in Spanish: Consumers have a right to be handed over a copy of their dwelling’s DIA
All Private Purchase, Sale & Let Contracts must comply fully with Royal Decree 171/1989 oF Consumer Protection regarding information that must be made available in conveyance & property lets.
Consumer Bodies will enforce this law. Junta de Andalucía's Inspectors can, without prior warning and without any need to identify themselves previously, verify that those subjects mentioned in art 3 are complying fully with all the obligations set forth in this Decree 218/05.
Applicable sanctions imposed on those that fail to comply with this decree.