One piece of information that shocked me was to hear that if an agent is unfortunate enough to sell a property that later turns out to be illegal, the agency is liable for the FULL sales price! :shocking: Despite whether the clients used a lawyer and the sale was witnessed by a Notary.
I do understand why Decree 218 is in place and despite all the hard work involved to become totally compliant I think that it will become a selling aid, but this news about agency liability seems totally unfair. We ALWAYS press the importance of using a lawyer to our clients and have assumed that it is the lawyers role to ensure the legality and therefore, should the property have problems after the sale then liability would be with the lawyer who approved legality to their client and possibly some fault with the Notary who also checks the sale is legal?!!! :unsure: I doubt whether many other agents are aware of this and felt I should mention it on the forum, as I'm sure I can't be the only one who feels that this is completely unfair and that it in fact penalises estate agencies.
Just to help along with the points, this is the issue of Civil Responsibilities (Responsabilidad Civil). In this regard, the real estate agency shares responsibility with other parties in the **sales process**, should the buyer find himself or herself at a disadvantage. The level of responsibility can be purchase amount of the home in question. The principles are as follows (under the Civil Code, Código Civil):
Buyers have a right to a safe purchase with full guarantees.
Buyers should be fully and extensively informed of the conditions of the purchase.
Every company or professional that takes a role in the process of sale is liable for any breach of contract
Turning now the Administrative responsilibilities, which are those under which Decreto 218/2005 falls, professionals can face the fines and penalties (up to 5.000 euros for minor infractions and up to 30.000 euros for serious infractions). _*Essentially, it is important to remember that by fulfilling the legal responsibilities stipulated under Decreto 218/2005 when selling resale homes (and providing all required documentation, with the Ficha Informativa and Nota Explicativa, along with Nota Simple and IBI receipt), then a real estate professional can sleep soundly and restfully.*_
Little else needs to be said as to the negative aspects, given that they are applicable moreso to non-compliant professionals. And in this regard, it should be mentioned that inspections (however unlikely or unlucky), become secondary, when faced with Civil liabilities. Indeed, it is helpful to recall that clients can file complaints that will then lead to the intervention of the authorities to protect their interests. And, of course, a compliant professional is safeguarded by observing the information requirements under consumer protection law. The trend is not exclusive to Andalucía, with Decreto 218/2005, but also national in Spain with Real Decreto 515/1989, and in other jurisdictions, such as the UK, with the Home Information Packs (HIPs). Compliance with consumer protection law is now a means of protecting the interests of the professional. Views: 633
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