Drakan, I’m glad you see this as a problem that the Gov’t should tackle as a priority. It’s something I’ve been harking on about for ages, that Spain’s Gov’t COULD and SHOULD prioritise issues regarding their often ‘corrupt’ property market, including proper regulation of the cowboy estate agents and developers that are still operating there, you know the ones I mean, and some lawyers too, those that always crop up on this site!
The industry needs ‘steam cleaning’ to regain it’s image.
There has been no misunderstanding Paul, don’t worry. 😉
I agree with you.
70% of problems would stop if REAs were regulated in Spain and those laws were correctly implemented and enforced. No use having laws that are not enforced. They are just wet paper.
Unfortunately the ex-ruling political party PP abolished these laws. The huge British REA which act along Spain’s coasts and spend fortunes on marketing are acting in a legal limbo because they are not regulated at all in Spain. There are no legal limitations to his activity and frankly the Government hasn’t been too keen either in regulating this, either PSOE or PP because they have their own vested interests in Spain’s economy. A 21 year old UK REA can be making even more money than a 47 year old lawyer. It’s that crazy but that’s how it is working now. A completely lawless sector unlike for us lawyers or other professionals. Free Market some would say.
They are not required to have professional indemnity insurance, they don’t need college degrees, they don’t need a Bar Association. Just sell, sell and sell.
The Government should clamp down on them (=the rogues) sooner or later by means of passing a law that regulates the sector. We’ll see how long this takes.
In my humble opinion I see many professionally run REA in Spain which are small to medium-sized that just cannot compete with brutal and unscrupulous market tactics of the large ones which do not abide by any law because there simply is no law to abide by currently.
Despite of all the above I think that REA are completely essential in the buying process in spain, only that they should be regulated like the rest of the parties involved in the process.
Anyway all the above is very discussible and very off the point, it’s just my personal opinion.