The New Regulations (Royal Decree 218/2005) on Information to the
Consumer in purchases and rents of real estate in Andalucia is applied
to Commercial and Professional activity to offer, promote and advertise
the selling and renting of real estate, including the brokering
activities. It excludes sales in public auctions, both judicial and
administrative ones.
This recently passed Andalucian Royal Decree regulates:
- The information to be provided to the consumer: Both for
first, second and subsequent transmissions and for the renting of real
estate.
- The documents that need to be given before the signing of the
contract: Licenses, community of owners´ statutes, insurances and
guarantees, book of the building, instructions for the evacuation of
the building, certification of IBI payments, etc…
- The obligation to make available to the buyers the named
“Brief Informative Document” ( Documento Informativo Abreviado- DIA)
with the most important basic data: Identification of developer and
agent, building firm and works director, identification of the house,
plans of the house, description of the building, specification and
features, full price, method of payment, advanced paid amounts…
(I will tell you more extensively about this document in my next article)
- For rental purposes this DIA is also required for: Description
of the house, identification of the renter, inventory of belongings and
furniture, description of the building, rent, expenses, deposits,
charges and/or encumbrances…
- The DIA must be free
- It must also be specified: An explanatory note about price and method of payment.
- The obligation to have a poster telling about the availability
of a Brief Informative Document that will have to be placed next to the
poster which tells about the existence of complaint forms.
The Royal Decree provides detailed information about all the
documents that need to be available to the consumers, both in the
Articles and in the attached documents.
The attached documents regulate:
- The Content of the DIA
- Justification for the delivery of the Explanatory Note about the price and method of payment.
- Specification card (Ficha) for second and subsequent transmissions.
In the opinion of many of my colleagues, and in my own opinion too,
this new Royal Decree will greatly contribute to have a healthier
environment in the Real Estate Market. That is something that we all
want (including Lawyers) despite the behaviour of a few of us that play
games by protecting both the developer’s and the consumer´s interests
at the same time. That generally leads to a professional lack of
consistence.
It is also important to note that the FACUA Andalucía (Federation of
Consumers Associations in Andalucía) has already reported 163 cases of
Real Estate Agencies on infringement of the Decrees on Information to
the Consumer and Complaints forms. That may seem like a breath of fresh
air to many of you, I am sure.
My recent success with a developer in my area at recovering all the
amounts (plus interests, plus legal expenses, plus travelling expenses)
that my client have delivered in an off plan purchase, in a case where
there was no bank guarantee and a delayed works licence, had been based
on Consumers Regulations. I would think, and this is just my personal
opinion, that this public Law regulations are more imperative that some
private Law- more easy to avoid - rules. I would encourage you all to
extensively know your rights as Consumers. It may be the content of my
coming letters.
Cheers!
Maria de Castro
Lawyer
Maria de Castro is a Spanish Lawyer and the Director of the Law Firm www.costaluzlawyers.es.
She specializes in advising private foreigners in Spain and making the Spanish adventure a good dream. You can contact her at
mldecastro@costaluzlawyers.es