New Law D/218?

LoadingFavourite

This topic contains 23 replies, has 8 voices, and was last updated by Profile photo of katy katy 8 years, 8 months ago.

  • Author
    Posts
  • #53500
    Profile photo of katy
    katy
    Spectator

    I translated a message today for a friend, it came from a spanish estate agent. (Rough translation!)

    “on 4th Nov a new law was introduced (D/218) in future clients wishing to sell will have to provide the agent with the following:

    Escritura/Nota Simple
    IBI receipts
    Bank which you have a mortgage and the balance owing
    Final Occupation Licence.

    There is a high penalty for non-compliance, therefore if you cannot provide these we cannot offer your property for sale.

    Any comments?

  • #76476
    Profile photo of Anonymous
    Anonymous
    Participant
  • #76481
    Profile photo of Inez
    Inez
    Participant

    We have always had to request nota simples/lfo’s private purchase contracts and ibi as well as sevillana/water bills and community recipt before offering a property in the way we sell.

    Not asked for mortgag details and I would have thought this would not be in the interest of private indiciduals as its private info, surely. Wouldnt if go against data protection acts?

    Good idea in principle but difficult – also if a property is on the market for 6 months, the receipts would be out of date – does one renew them every month to 10 different agents who are selling it

    Also in the case of mulitple listing services where the proeprty is placed by 1 agent but offered by maybe 50 – do all of them have to have it?? Its a bit daft to be honest, its difficult enough with the few properties we offer but a large agency would have to employ staff to deal with it!

    Once an offer is made, then first things asked for is a nota simple with the rest before notary as at notary anything outstanding should be paid off from the funds leaving clear title

  • #76483
    Profile photo of katy
    katy
    Spectator

    Yes, an old nota simple doesn’t have much meaning! My friend said it is the first time she has been asked for these documents and she has the house on with about 7 agents. Just think of all the photocopying you would have to do with the escritura too. I am not sure I would want all my stuff hanging around with some of the agents. Utility bills also have bank account details on. All that stuff they could steal you identity (I think 😕 )

  • #76487
    Profile photo of Inez
    Inez
    Participant

    Escritura is not a good idea and Im sure the spanish wont give it. Firstly its huge, secondly theres risk of fraud but mainly it states what was paid for the property

    Now, we dont ask for it as I dont like to be biased in anyway with regards to setting a reserve and hate outside influence ie what someone paid for it etc, so its a very personal thing with a lot of data on it – this is why nota simples are around as a simple extract!

    But heres the interesting one – if a property was bought a year ago and underdeclared, the low price on the escritura, what would happen if it got into the wrong hands? Could be denouncias flying all over the place.

    I think I will carry on as we are and take the chance of the fine!

  • #76521
    Profile photo of Anonymous
    Anonymous
    Participant

    Its like HIPS in Uk. My comments.

    1) Since when have Spaniards worried about the law ??

    2) Does anybody shy away from paper work in Spain ? So more photo copies more paper work. Creates useless soul destrying employment.

  • #76533
    Profile photo of mariadecastro
    mariadecastro
    Participant

    What region of Spain?

  • #76539
    Profile photo of katy
    katy
    Spectator

    Costa Del Sol. Letter came from a medium sized agency and established in the area.

  • #76557
    Profile photo of mariadecastro
    mariadecastro
    Participant

    Decree 218 of Andalusian Government is dated in July, it does not exist a November Decree numbered 218.

    The latest Decree regarding information to be provided when buying/ selling and renting is what is mentioned and explained in the article cited in this thread by karenmcc.

  • #76558
    Profile photo of mariadecastro
    mariadecastro
    Participant

    http://www.costaluzlawyers.es/eng/?p=22

    You might also read the article above I started my webiste with, back in April 2006. It must refer to that Decree 218 which was passed in November 2005

  • #76563
    Profile photo of Inez
    Inez
    Participant

    Maria – I have just read your website article – interesting it states public auctions are exepmt from this information – why is this?

    I have always provided a basic legal pack, but not as detailed as required under the decree, and at what point does a browser become a consumer?

    Surely once someone actually places an offer then they are entitiled to this information -otherwise you would have to hand out a whole dossier to people just walking in the door and asking about a villa!

    And once an offer is placed, then a simple agreement setting out terms signed by both parties and then given to the lawyers will ensure the lawyers check the relative info anyway??

  • #76573
    Profile photo of mariadecastro
    mariadecastro
    Participant

    I guess you do private auctions ( not judicial or administrative). These are exempt as they have got their own rules for transparency.

  • #76577
    Profile photo of Inez
    Inez
    Participant

    Oh happy days!!! I reckon we do enough work as it is!

    Thank you!!! 😆

  • #76578
    Profile photo of mariadecastro
    mariadecastro
    Participant

    Inez:

    I do not know if you understood correctly: judicial and administrative are exempt, not private, even though I cannot see you under that Decree either. You ar in a mixture position. These private auctions firms are not very commun in Spain.

    Email me if you need a more extensive explanation.

    Best regards,

    Maria

  • #76582
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant

    the decree is in fully force now.
    Recently an unicasa office got fined 6.000€ and another office (can’t remember the name) in Alhaurin el Grande has closed down due to a fine of 20.000€

    A majority of our vendors are spanish. We have approx. 300 proeprties on our books. Except for about 25 properties we have all the escrituras plus other required information (how are we to sell without it??). If they’re unwilling to give us all relevant information, then we simply don’t list the property.
    A good thing about this law is it also applies to off-plans. So if an agency advertises an off-plan they have to be able to supply all relevant information then and then in the office including the DIA (documento Informativo Abreviada) which specifies Everything you need to know about the it.

    But there is also a bit of leway. Regarding mortgages on a property the agent should be able to specify the mortgage on listing the property, but cannot have an exact figure.
    The nota simples are valid for 3 month period, so escritura (IMO) make more sense as we are nit willing to go renewing a nota simple every 3 month. The figure would mount up far to quickly.

    This law is an administrative law, so no-one will go to prison for breaking it, only get fined. Fines can vary from 6.000€ up to, i think, 100.000€

  • #76583
    Profile photo of Anonymous
    Anonymous
    Participant

    Is this document required for sale of property in other regions in Spain (specifically Murcia, Almeria, Alicante, Canary & Balaeric Islands)??

    If the rules are different could somebody please provide a link to the relevant information for each Province/Communidad Autonoma)

  • #76584
    Profile photo of Inez
    Inez
    Participant

    Thanks Maria – no its not common what we do – originally our own lawyer had to find out if it was even legal as he had never heard of the procedure.

    I will stick to erring on the side of caution and ensure we have all documentation as I think we must be only halfway there with what we collect!

    Cant afford a fine!

  • #76588
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant

    @karenmmc

    well Almeria is part of Andalucia so it definitely applies there.

    In regards to other regions decree 218 applies only to andalucia, BUT there is a royal decree that pretty much says the same thing and that applies for all of spain as far as i understand it

  • #76589
    Profile photo of mariadecastro
    mariadecastro
    Participant

    There is a National One, REAL DECRETO 515/1989, DE 21 DE ABRIL, but competences regarding Consume are shared by National regional Parliaments. So regional parliaments also have their own Consumers Act, recently renovated with specific mentions to information to be provided to Consumers when buying/renting real estate: I am most familiar with the Andalusian one but there is one similar to that in almost every Region:

    Asturias

    Ley 11/2002 de 2 diciembre 2002

    Canarias

    Ley 3/2003 de 12 febrero 2003

    Cantabria

    Ley 1/2006 de 7 marzo 2006

    Castilla-León

    Ley 11/1998 de 5 diciembre 1998 Ley 11/1998,

    Extremadura

    Ley 6/2001 de 24 mayo 2001

    Galicia

    Ley 4/2003 de 29 julio 2003

    Islas Baleares

    Ley 1/1998 de 10 marzo 1998 Ley 1/1998, de 10 de marzo

    Navarra

    Ley Foral 7/2006 de 20 junio 2006

    País Vasco

    Ley 6/2003 de 22 diciembre 2003

    Valencia

    Ley 2/1987 de 9 abril
    Ley 8/2004 de 20 octubre 2004

  • #76600
    Profile photo of Anonymous
    Anonymous
    Participant

    How does this new law effect UK based internet real estate companies selling property in spain or are they just deemed lead generators for the seller.

  • #76611
    Profile photo of mariadecastro
    mariadecastro
    Participant

    If it is operating in Spain, it is subject to that and can be fined too.

  • #76623
    Profile photo of katy
    katy
    Spectator

    Just noticed a small article in a mag.
    INMONETWORK
    “Following the success of an annual seminar the company held in marbella in October InmoNetwork has been nominated by OPP magazine for a global award in London. They also report that they are the first MLS company in andalucía to comply with a new law aimed at protecting national and foreign buyers in S: Spain.”

    Reading the other thread about VIVA I wouldn’t be too happy to have copies of my escritura and other documents hanging around several agents offices.

  • #80275
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi
    I deal mainly with long term rentals on the Costa del Sol. I have just found out that this new law – decree 218 – also applies to rentals and am now a little concerned that I don’t have the correct paperwork.

    I have a DIA form but this applies more towards the selling of a property. Does anyone know if there is a different version for a rental and if so where I could get hold of one. If not, exactly what do I need to complete on the current form?

    Also is it really necessary to have a copy of the nota simple/escritura, IBI, basura, utility bills etc for a rental property?

    All the sites I have looked at tell you exactly what documents are needed for selling a property but not for renting.

    I would really appreciate any advice given as I do not want to be faced with a fine. Someone I know (agent) recently advertised a property in the SUR and his “client” actually turned out to be the junta. As he didn’t have the correct paperwork he was fined 3000 euros!

    Regards

  • #80276
    Profile photo of katy
    katy
    Spectator

    I heard that an Agent in La Cala was/will be fined for not having copies of these. It is claimed the junta can look at what the agent is advertising and ask to inspect the file of the seller. It should have copies of, Nota Simple, Escritura, any mortgage details, community fee receipts, paid up Utility Bills. I would imagine it could also apply to rentals as people have been known to take large deposits for property that is not theirs to rent.

You must be logged in to reply to this topic.