New Law D/218?

[katy]

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?

[Anonymous]

More info available on this here….

http://www.eyeonspain.com/spain-magazine/documento-informativo.aspx

[Inez]

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Good idea in principle but difficult – also if a property is on the market for 6 months, the receipts would be out of date – does one renew them every month to 10 different agents who are selling it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

[katy]

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 😕 )

[Inez]

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!

[Anonymous]

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.

[mariadecastro]

What region of Spain?

[katy]

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

[mariadecastro]

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.

[mariadecastro]

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

[Inez]

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??

[mariadecastro]

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

[Inez]

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

Thank you!!! 😆

[mariadecastro]

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

[Fuengi (Andrew)]

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€

[Anonymous]

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)

[Inez]

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!

[Fuengi (Andrew)]

@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

[mariadecastro]

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

[Anonymous]

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.

[mariadecastro]

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

[katy]

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.

[Anonymous]

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

[katy]

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.

[Author]

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