APIs lament carte blanche for false intermediaries

The Ministry of Economic Affairs and Digital Transformation vetoed a few weeks ago the creation of a mandatory registry of real estate agents, which was expected to be included in the Housing Law, and which had received the support of the Ministry of Transport, Mobility and Urban Agenda and the consumer associations, as stated this morning by Gerard Duelo, president of the General Council of Associations of Real Estate Agents in Spain.

Oliver Thansan
Oliver Thansan
22 May 2023 Monday 11:34
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APIs lament carte blanche for false intermediaries

The Ministry of Economic Affairs and Digital Transformation vetoed a few weeks ago the creation of a mandatory registry of real estate agents, which was expected to be included in the Housing Law, and which had received the support of the Ministry of Transport, Mobility and Urban Agenda and the consumer associations, as stated this morning by Gerard Duelo, president of the General Council of Associations of Real Estate Agents in Spain.

“They claimed protection from competition, but they leave consumers defenseless against false intermediaries and in the hands of people without any training or economic guarantee when they are going to make what will surely be the biggest investment of their lives,” added Duelo.

Sources from the ministry headed by Nadia Calviño, however, pointed out that the registry would have been territorialized (competence in matters of housing belongs to the autonomous communities) "which would create barriers in the provision of services, and what we want is to eliminate them and that can be operated throughout the territory".

The APIs, which strongly charged against the law, described as "cowardly and irresponsible" that "anyone without any preparation is allowed to rent or sell a house" and considered mandatory registration, like the one that exists in Catalonia and the Valencian Community, a “minimum requirement”.

The draft of the law, assured Duelo, "had an article 30.4 that required this mandatory registration, and also that these professionals have civil liability and surety insurance" for the amounts delivered on account as a deposit or down payment for the clients. Duelo explained that the Ministry of Economy only accepted a voluntary registration, "which would have ended the mandatory registrations that already exist."

The Ministry of Transport, for its part, assured that the registry was not included "in any draft" of the law. "Only as a consequence of some amendments presented in Congress, the parliamentary groups worked on the possibility of including that the autonomous communities could establish a registry (without specifying its voluntary or mandatory nature), although said amendments did not prosper."

Montserrat Junyent, legal adviser for the Catalan college, explained that Andalusia has also approved the creation of a mandatory registry of agents and that other communities such as Cantabria are studying it. "In Catalonia it has been operating since 2011, it has 8,000 registered professionals and there are no problems for hindering access to this activity or for limiting competition," she added. At the other extreme, Duelo pointed out, in Madrid, where registration is voluntary, there are only about 600 registered professionals.

Duelo charged against the lack of political consensus in the drafting of the standard, and that the government has ignored the opinion of "jurists, economists, professors, and professionals in the sector" to prepare it, since it has only been a "currency of political change”. This, he predicted, encourages the "polarization" of housing policies and anticipated that it will become, like the Education laws, the "new legislative toy of the next governments", when the sector needs above all legal security and stability to function efficiently.

The APIs highlighted that in their opinion the rule is unconstitutional, and anticipated that there are already "three or four" appeals underway, which can only be presented by autonomous communities, parties with 50 deputies or senators, the Ombudsman and the Government itself. According to José Merino, legal officer of the Madrid API College, the rule is unconstitutional for invading the powers of the autonomous communities; infringe the right to private property and the freedom of agreement between the parties, by setting limits on rents, updating them or establishing who must pay intermediation fees. According to Duelo, the right to effective judicial protection is also violated, by imposing the obligation to go to social services and mediation before being able to file a lawsuit in court in case of non-payment of rent or illegal occupation of the property.

Carles Sala, spokesperson for the Api collective in Catalonia, stressed that the obligation for the fees to be paid by the owners will end in many "complaints" from tenants, who will pay the fees to be able to rent and, after being informed, will demand their return. In Junyent's opinion, in addition, it will promote the "underground economy" in the sector "and without any registration or requirement it will not be possible to know who is behind it."

As a positive aspect of the law, Sala highlighted the tax deductions for owners who rent apartments, which can reach 90% if they reduce the rent by 5%. However, he recalled, this is the only issue of the regulation that will come into force on January 1, 2024, "so an owner who thinks of renting an apartment these months before deciding will have to do a lot of numbers," he added. he.