ON October 16th, the Decree 98/2022 came into force in the Valencian Community, regulating the Registry of Real Estate Agents. What does this Register consist of? Why has it caused such an earthquake in the property market in the region of Valencia? In today’s article we analyse the most important aspects of this new regulation. Obligatory nature. Professionals affected. Requirements. Deadline. Timeframe. Etc.
Where does the controversy arise from? Legal background in Spain. Market liberalisation and new obligations
In Spain, since 2000 (by means of Royal Decree Law 4/2000) it is not necessary to comply with any special requirements for the exercise of real estate brokerage. No academic qualifications, no specific physical address, and no civil liability insurance, etc. It was enough to be registered as a self-employed person (freelance) to exercise the activity. The Decree approved by the Generalitat Valenciana changes this situation abruptly.
Following in the footsteps of other communities such as Cataluña, Madrid and Navarra, the Valencian Community has created a Registry of Real Estate Agents. In this case, of a compulsory nature. What will happen from now on? To be able to continue exercising their activity, agents are obliged to fulfil a series of requirements and to be duly inscribed in this Register.
This regulation places a very high percentage of the people currently working in real estate at a crossroad. To comply with the new requirements established by the law or to stop working in the sector.
Does this rule apply to all professionals? Are there any exceptions?
A real estate agent is defined as any person, natural or legal, who is dedicated, on a regular and remunerated basis, to provide consultancy and management services in real estate operations, buying and selling, renting, etc. Who is outside the scope of the regulation? Property administrators. Estate agents who operate in the Valencian Community but have an establishment open to the public in another territory (with exceptions). Persons who carry out these services on a non-habitual basis and do not charge for them, etc.
Requirements for registration in the Register of Real Estate Brokers
The requirements can be classified in three groups:
- Location and service. Agents must have an establishment open to the public. Those who provide services exclusively electronically must also have a physical address in the Valencian Community.
- Professional qualifications. It is essential to be in possession of one of the following qualifications:
– Official Title of Real Estate Property Agent.
– University degree in the branch of Social and Legal Sciences, Engineering or Architecture.
– Certificate of attendance and successful completion of training courses of at least 200 hours (face-to-face or online).
- Solvency. It will be compulsory to have:
- A bank guarantee, or surety insurance, for an amount between €60,000 and €300,000. The amount will vary depending on the number of establishments open to the public, whether the activity is face-to-face or exclusively online, etc.
- A civil liability insurance, or similar financial guarantee, between €600,000 and €1,000,000, per claim and year, depending on how the service is provided.
Deadline for compliance with the requirements and registration in the Register
How long do estate agents have to prove compliance with these requirements and proceed with registration? In the case of individuals, the deadline is one year. (that is, October 16th of 2023). For schools, professional or business associations, the deadline is reduced to six months.
If you need information about the new registry of real estate agents in the Valencian Community, do not hesitate to contact us, at White-Baos we will study your case and help you with the registration in the Register created by the Generalitat Valenciana.
The information provided in this article is not intended to be legal advice, it simply conveys information related to legal issues.
Carlos Baos (Lawyer)
White & Baos.
Tel: +34 966 426 185
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