What will be the new obligations of real estate agents?

It is common for people to hire the services of a real estate agency without knowing what their role or responsibilities are. In addition, people believe that real estate agents’ objective is only to sell or rent real estate, but it is not. In this article, we will tell you what are the responsibilities of real estate agents at the time of finalizing a lease or the purchase and sale of a property. Join us!

Types of services offered by real estate agents

The obligations of real estate agents will depend on the type of service they offer, and may be of two kinds:

Mediation

It consists of locating potential buyers or sellers for a property, without intervening in the negotiation or the formalization of the contract. The real estate agent acts as an intermediary between the parties. He/she must provide contact and basic information about the property. 

For this service, the agent charges a commission, which is usually a percentage of the sale or rental price. The parties must agree upon it in writing in a document called “Sales or Rental Order”.

The document must also specify the conditions of the service, the commission to be charged and whether it is exclusive or non-exclusive.

Exclusivity means that the owner or buyer can only hire one agency to manage the transaction. On the other hand, non-exclusivity allows the hiring of several agencies simultaneously. 

Consulting

It involves offering legal, tax, mortgage or property valuation guidance to clients. In addition, it also locates potential buyers or sellers. Real estate agents act as qualified professionals who help the parties to operate with the best guarantees and conditions. 

For this service, the agent charges a commission, which is usually higher than the mediation fee. The parties must also agree in writing by means of a document called “Advice Order”.

The document must specify the conditions of the service, the fee to be charged and the scope of the advice.

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What are the obligations of real estate agents?

As we have already told you, there are many obligations that real estate agencies have. They will adapt these obligations to the case, whether they are purchases or sales.

Obligations of real estate agents during sales

The obligations that real estate companies have in sales are usually as follows:

Obligations of the real estate company in a lease

However, when it comes to rentals, real estate agents must comply with the following obligations:

What is the new Housing Law in Spain?

Spain’s new Housing Law is Law 12/2023, of May 24, for the right to housing. They published this in the BOE on May 25 and it came into force the following day.

The purpose of this law is to develop the constitutional right to decent and adequate housing. As well as regulating public housing policies to guarantee its social function. That said, the main measures included in the law are:

• Promote public and protected housing, with indefinite qualification and land reserve for social renting.
• Limit the price of rent in areas declared as stressed, with tax or urban planning benefits for landlords offering affordable rents.
• Support vulnerable groups, such as young people, the elderly or those in situations of social exclusion. This by means of rental subsidies or preferential access to public housing.
• Promote rehabilitation, regeneration and urban and rural renewal. All with criteria of sustainability, accessibility and energy efficiency.
• Establish mechanisms for collaboration and cooperation between public administrations, the private sector and civil society in the area of housing.

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The new Spanish Housing Law modified which article?

“They amended Article 20 of the Urban Leasing Law (LAU). Now it establishes that the lessor or seller will assume the real estate management and formalization expenses of the lease or purchase contract instead of the lessee or buyer. Of course, when the latter is a legal entity (company).

This measure is intended to protect consumers against abuses by homeowner companies. The latter used to allocate these expenses to tenants or buyers.

What are the new obligations of real estate agents proposed by the Housing Act?

The new obligations of real estate agents derive from Royal Decree Law 7/2019. The latter amended Article 20 of the Urban Leases Law (LAU). 

However, this measure only applies when the real estate agent performs mediation work, and not when he/she performs advisory work.

Regarding the advice, the real estate agent can charge his fees to the client who has hired him to advise him. Whether this is the lessor or seller (legal entity) or the lessee or buyer (natural person).

In addition, real estate agents must comply with their obligations to advise their clients. Verifying the existing charges on the houses that they offer, informing on the risks and advantages of the operation. And providing the necessary documentation for the transaction. 

These obligations derive from the general duty of professional diligence and contractual good faith that governs commercial relationships. If the real estate agent breaches these obligations, he may be civilly liable to his clients for the damages caused.

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Are you interested in learning more about the new Spanish Housing Law and to know in depth the obligations of real estate agents? You are in the right place! Contact us through tasconsultoria@tas-sl.es and our team of advisors will give you the details you need. Schedule your free advice now!