DECREE 218/2005 (only applicable to Andalucía)

Post reply   Start new thread
:: New - Old :: Old - New

Pages: 1 |

Forum home :: Latest threads :: Search forums
The Comments
03 Sep 2008 00:00 by Lawbird Star rating. 59 posts Send private message

Lawbird´s avatar
DECREE 218/2005


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.

Art.1- See bullet point above (What does it rule ?)

Art 2.- It defines basic concepts such as built surface, usable surface, dwelling price, taxes etc

Art 3.- 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)

Art 4.- It basically lays out the general principle that all information provided must be true and not misleading in anyway

Art 5.- 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”)

Art 8.- Requirements EA must comply with.

Art 9.-Details of the documents that must be handed over in off-plans.

Art 10.- 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.

Art 12.- 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

Art 13.- 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.

Art 14.- 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.

Art 15.- Applicable sanctions imposed on those that fail to comply with this decree.



This message was last edited by Lawbird on 9/3/2008.

This message was last edited by Lawbird on 9/3/2008.

_______________________
Lawbird Spanish Lawyers http://www.lawbird.com



Like 0      
03 Sep 2008 22:17 by Rixxy Star rating in San Pedro. 2010 posts Send private message

Rixxy´s avatar
Thanks Lawbird - a question for you - how does this affect agencies based in the UK or other areas who offer properties in Andalucia?

And what about websites where owners load their own property details up as I believe owners are exempt from this ruling, its only estate agents who must comply?

_______________________

Quite frankly m'dear, I don't give a damn!

www.herbalmarbella.com




Like 0      
04 Sep 2008 09:03 by Lawbird Star rating. 59 posts Send private message

Lawbird´s avatar
Hi Rixxy. On your first point they would be totally exempt in our opinion, although the matter may be subject of controversy. Quite simply because these agencies located in the UK are outside the punitive range of the Junta de Andalucías inspectors. Only agencies, professional intermediaries, developers located in Andalucía will be obliged. This law can only be enforced within Andalucías boundaries. Just for the record, if it interests other readers, the rest of Comunidades Autónomas (Regional Bodies, in Spain we have 17) enact their own laws which are only enforceable within thier own boundaries. Besides these regional laws we have national laws which are enforced nationwide.

On the second point you are absolutely right. Private individuals selling their own homes in Andalucía need not comply with this Decree which is aimed to be abided only by professional real estate intermediaries.

So bottom line, if you are an Estate Agent, professional seller or developer and you're based in Andalucía you will have to comply with this decree or else risk being fined by the JA's inspectors which are not required to identify themselves previously. Quite a few Estate Agencies have already been fined already in 2008. If it didn't happen before it's only because these inspectors chose not to enforce it; now they are.




This message was last edited by Lawbird on 9/4/2008.

_______________________
Lawbird Spanish Lawyers http://www.lawbird.com



Like 0      
04 Sep 2008 11:09 by mariadecastro Star rating in Algeciras (Cadiz). 9344 posts Send private message

Legal Questions? Speak to Maria Direct
In addition to Antonio Flores´information on Decree 218/2005, you may like to review these two pieces of information lodged in EOS´ set of articles since 2006 when we started to contribute here ( they were actually the first  two articles here) Thanks Justin for such a great tool you have provided to all us.

More that one hundred of Estate Agency has already been fined for breaching this Law.

Brief Informative Document

New regulations protecting buyers and renters in Andalucia

Good morning!!

Maria


_______________________

Maria L. de Castro, JD, MA

Lawyer

Director www.costaluzlawyers.es

El blog de Maria



Like 0      
04 Sep 2008 15:37 by Lawbird Star rating. 59 posts Send private message

Lawbird´s avatar
Dear colleague María, please, Mr Antonio Flores has not written this or any other legal article posted on EOS or for that matter even replied to any query as "Lawbird". Other company lawyers have done so and are duly credited on our websites as the authors.

When Mr Flores writes we assume he does so under his own name and responsibility. Any of us, Lawbird’s solicitors, log in EOS anytime and would like to continue contributing replying to queries or posting articles on legal issues in a civil manner if it’s possible. Mr Flores has never logged in as "Lawbird", we do. 

Off the record, we do realise you contribute articles to EOS and have been doing it for at least two years. Please keep the hard work, as we know the time and effort it takes to write articles and other web content, something which we have been doing for the last 10 years on different sites (e.g. marbella-lawyers.com).

We would kindly request you to refrain from entangling us in a continued crossfire in unwarranted attacks on your seemingly personal vendetta against said lawyer tarnishing our good corporate name in the process in the various threads we've opened over the last two days. Any grudge you may hold please take it up directly with him leaving us aside.

Thank you.

The Lawbird Legal Team



_______________________
Lawbird Spanish Lawyers http://www.lawbird.com



Like 0      
04 Sep 2008 20:51 by mariadecastro Star rating in Algeciras (Cadiz). 9344 posts Send private message

Legal Questions? Speak to Maria Direct

Measure, measure...

Are you using the right glasses? Are not you overeacting?

Simply it is not our style. We have got so many projects and things to do that cannot spend time in vendettas.

Have a good night you all there.



_______________________

Maria L. de Castro, JD, MA

Lawyer

Director www.costaluzlawyers.es

El blog de Maria



Like 0      
24 Jan 2009 00:46 by MrUnhappy Star rating. 124 posts Send private message

Thankyou for such an interesting post and it does raise a question for me and I would really appreciate some advice.

If a solicitor based in Andalucia gained commission from me for the purchase of a property in Andalucia in 2007 and did not ensure that most of the conditions of this law were met, do I have a right to claim his fees back? 

Thanks again.

 





Like 0      
24 Jan 2009 11:30 by TechNoApe Star rating in Duquesa, Manilva. 1278 posts Send private message

Vip Supporter

TechNoApe´s avatar

Am I correct in assuming that this also covers any outstanding debts on the property?

When we purchased the property from the promoter, as brand new, the promoters Lawyers should have informed us of any outstanding debts on the property, including any to the community.

After purchase, when we started paying community fees, an additional 600€ was taken during the 1st trimester and the only explanation given by the Administrators was that there was an outstanding debt on the property in favour of the community of this sum.

Now as I understand the law, this 'legal' debt to the community should have been notified to our Lawyer PRIOR to sale, and either before or during the sale of the property should have been paid by the promoter.



_______________________

www.andalucianstyle.com

Me, the Mrs and Rosie too! But we'll never, ever forget our Tyler!

We support AAA Abandoned Animals Marbella - Do you?




Like 0      
24 Jan 2009 23:42 by TechNoApe Star rating in Duquesa, Manilva. 1278 posts Send private message

Vip Supporter

TechNoApe´s avatar

Ah! I have just seen how old this thread is, so I won't hold my breath for a reply.



_______________________

www.andalucianstyle.com

Me, the Mrs and Rosie too! But we'll never, ever forget our Tyler!

We support AAA Abandoned Animals Marbella - Do you?




Like 0      
25 Jan 2009 20:18 by Roberto Star rating in Torremolinos. 4536 posts Send private message

Roberto´s avatar

Your lawyer should have ensured that you had written confirmation from the community (administrators) that all dues were paid up to date. If he failed to do that, maybe he was negligent? I'm unsure on who the burden of proof falls (legally). (You didn't use the promoters lawyer, did you?)



_______________________

 

"Get your facts first, then you can distort them as you please"

Mark Twain

 

 

 




Like 0      
25 Jan 2009 22:32 by TechNoApe Star rating in Duquesa, Manilva. 1278 posts Send private message

Vip Supporter

TechNoApe´s avatar

Hi Roberto,

No! We didn't use the promoters Lawyers.

This is a strange set of circumstances surrounding this so-called 'debt'.

When we purchased the house there were substantial community fees outstanding by the promoter to the community, the details of such were disclosed to my Lawyers by the Administrators, however these were paid by the promoter.

Shortly after completion there was a 600€ 'initial fee' that was taken from our account along with the 1st trimester community fees. When I asked the Administrators about this 600€ 'initial fee' they said that it was an outstanding community debt that would be passed on to 'new buyers' ONLY and this had been agreed between the Administrator, the promoter, and the then President of the community, which by the way was the promoter.

So in other words it is a community debt on the property, and this debt should have been disclosed with all the other debts at time of purchase.

In any case, I now have to pay this trimesters community fees, therefore I have decided not to pay such until this matter is successfully resolved, as I believe they did not have the right to take money from my bank account without my authority.

 



_______________________

www.andalucianstyle.com

Me, the Mrs and Rosie too! But we'll never, ever forget our Tyler!

We support AAA Abandoned Animals Marbella - Do you?




Like 0      
25 Jan 2009 22:42 by Rixxy Star rating in San Pedro. 2010 posts Send private message

Rixxy´s avatar

Techno, be careful following that course of action. You cannot stop paying something in protest, you are supposed to pay and then contest the initial payment, otherwise you will get behind with your community fees and be liable for that debt.

Better to take legal advise and try to sort it that way, but my guess is you will not get very far with it

Good luck



_______________________

Quite frankly m'dear, I don't give a damn!

www.herbalmarbella.com




Like 0      
25 Jan 2009 22:57 by TechNoApe Star rating in Duquesa, Manilva. 1278 posts Send private message

Vip Supporter

TechNoApe´s avatar

Hi Rixxy,

I'm not going to stop paying all my community fees, I will continue to pay the fees but minus this 600€.

I have paid the 1st trimester and the 2nd trimester in full, however as I have protested over this illegal transaction and this protest has fallen on deaf ears, then I believe action is necessary in order for it to come to the fore.

They way I look at it is this:

Let them take me to court over 600€ of unpaid community fees and then I will counter sue with the illegal transaction of 600€ having been taken from my account during a previous transaction.



_______________________

www.andalucianstyle.com

Me, the Mrs and Rosie too! But we'll never, ever forget our Tyler!

We support AAA Abandoned Animals Marbella - Do you?




Like 0      
26 Jan 2009 09:55 by Lawbird Star rating. 59 posts Send private message

Lawbird´s avatar

Dear Sir,

As has been written, I issue you a word of caution following that path of not paying Community fees. Many people just do not realise that Community of Owners can place a charge against your property and even auction off your property for the outstanding community fees no matter how right your claim might be. Your path is incorrect.

Back on topic, It's the job of your appointed lawyer, of course, to warn you of any ourtanding community fees and disclose them in full. In fact when we purchase property on behalf of clients we always request from the vendors lawyer a certificate from the Community of Owners administration confirming there are no outstanding community fees and that they are all up to date. Besides this is how it must be done legally. If there are any outstanding community fees, it doesn't matter because you can always agree a retention to be practised on completion with the vendors lawyer for the amount of the debt. This is done fairly often.

Regards,

 



_______________________
Lawbird Spanish Lawyers http://www.lawbird.com



Like 0      
26 Jan 2009 17:38 by Roberto Star rating in Torremolinos. 4536 posts Send private message

Roberto´s avatar

Further to Lawbirds post, I would add that normally the Notary would ask to see the certificate from the community administrator. I think that perhaps this case is different because you were buying directly from the promotor, so it wasn't a resale. The fact that it sounds as though the community had already been set up, and with the promotor acting as president etc. confuses the issue a bit, but it sounds like the €600 was probably an initial fee to get some funds into the community account to establish some neccessary services (such as? don't know....), and is probably not uncommon. I wonder if perhaps the explanation of it that you were given i.e. that it was a "debt" being passed on, was in fact a slight mis-translation? Hopefully your lawyer will be able to clarify the issue. But I'm afraid I tend to agree with Lawbird & Rixxy, refusing to pay is probably not the best course of action. Might work in the UK, but here it could rub someone up the wrong way and make things harder for you in the future. Apart from that, it's illegal!



_______________________

 

"Get your facts first, then you can distort them as you please"

Mark Twain

 

 

 




Like 0      
29 Jan 2009 14:51 by Pitby Star rating in Andalucía. 1904 posts Send private message

Pitby´s avatar

Techno, you're obviously au fait with the process of community fees, etc., in Spain, but, if you bought from the developers, it does sound like a "sinking fund" fee.  Maybe Roberto has a point in that there may have been something "lost in translation" (still must see that movie!!).  Even though the developers are liable to pay community fees up until the time they sell the property, are they liable for the "sinking fund" amount?  We had an initial 300 euro amount, in addiiton to the first quarter community fees, but then we have several hundred apartments in DV, as you probably know.  Just thought I'd mention it!!

 





Like 0      

Pages: 1 |

Post reply    Start new thread


Previous Threads

Bank Repossessions in Spain explained - 27 posts
Bank Guarantees explained - 41 posts
First Occupancy Licence - 12 posts
FOR SALE:Ford Galaxy -2002 -1.9Tdi - 7 Seater -Superb Condition - €9,950ono - Mijas Costa-Tel:0034 610872869 - 0 posts
Is anybody there - 9 posts
Vocational Skills Training... - 1 posts
One Year On - 1 posts
Mums and tots, Dads and tots, Friendship in Spain, lonely in Spain. - 5 posts
Mums and tots, Dads and tots, Friendship in Spain, lonely in Spain. - 25 posts
Mums and tots, Dads and tots, Friendship in Spain, lonely in Spain. - 0 posts
Repossession - 37 posts
Renewed attacks in La Linea - 2 posts
Hot Property! IT professional moving to Spain. Limited offer - 0 posts
Hello from Portugal - 1 posts
Boletins - 1 posts
Empployment Offers - 2 posts
Amba Sun - 3 posts
Benalmadena Pueblo or Torreblanca? - 2 posts
Sound advice - 0 posts
can i use my uk driving licence in spain permenently?? - 16 posts
I plan to start a business in Spain sooooooon! - 16 posts
Travel Insurance? - 4 posts
Iberbanda & Telefónica - 4 posts
Help me make the right decision - 6 posts
125cc Scooter for sale - 7 posts

Number of posts in this thread: 16

DISCLAIMER:  All opinions posted on these message boards are the opinion solely of the poster and do not necessarily reflect the opinion of Eye on Spain, its servants or agents.


1 |
Our Weekly Email Digest
Name:  
Email:
   


This site uses cookies. By continuing to browse you are agreeing to our use of cookies. More information here. x