Decreto 218 – What is it and How Does it Affect Buying Property in Andalucia
Decreto 218 is a law that was passed in 2005 in the Andalucia region of Spain. The main reason behind its creation was to help protect the customer when purchasing or renting a property, and to put a stop to the rising cases of unfair or unethical practices being employed by a minority of professionals in the real-estate industry.
This has led to a more transparent process for the customer, who is provided with full details about the property, including all the details of any extra costs and taxes associated with purchasing a property, at an earlier stage in the process. This helps consumers to be completely informed about what is involved in purchasing a property, and helps to prevent any nasty surprises appearing further down the line.
Complying With Decreto 218
All real-estate professionals in Andalucia must comply with Decreto 218. This includes estate agents, property developers and intermediaries in both the sales and rental markets. This also applies to any professionals working outside of the region who are dealing with a property in Andalucia.
However, private owners are not required to comply with the law, even though many of them choose to do so. This is because complying with Decreto 218 means that their customers will be protected under Spanish commercial law as they would with an agency.
Properties Affected By Decreto 218
Decreto 218 only applies to properties that will be used as a place of abode. This is therefore equally relevant for both properties for sale and for rent that will be used either for the owners or for their tenants. However, Decreto 218 does not apply to properties, buildings, land or plots that will not be used as a place of abode, such as work offices.
Penalty Fines
In accordance with Decreto 218, real-estate professionals must provide the correct details and documentation to any customers inquiring about a property. Failure to comply completely with these regulations can result in hefty fines for the company or individual at fault.
As the result of a routine inspection, if a real-estate professional is deemed to be at fault, then the fines can range from €5,000 for a minor offence, to an enormous €400,000 for a more serious offence. It is therefore in the best interests of the real-estate professional to comply completely with the regulations to avoid these crippling fines.
Legal Requirements Of Decreto 218
The new requirements that have come into force for all real-estate professionals in Andalucia as a result of Decreto 218 are divided into three areas: the displaying of signs; providing the correct documentation; and complying with the advertising regulations. This section provides details of these new requirements that have been put in place for the protection of the consumer.
The Displaying of Signs
Decreto 218 requires that real-estate professionals display in their place of work, clearly and visible for anyone to see, two signs declaring their agreement to conform to the law. The signs are intended to provide a clear statement that the real-estate professionals are obliged to provide their customers with the essential free documentation associated with a property when an enquiry is made, and that if the signs are not visible then they could be fined as a result. As this is the most basic of the Decreto 218 requirements, if you can’t see a sign when you inquire about a property then you should be wary.
Provision of DIA
One of the most important parts of the Decreto 218 is the DIA, which stands for Documento Informativo Abreviado. This is essentially a document that contains a large amount of information regarding the property in question. This includes, but is not limited to, taxes, licenses, location, utility bills, the cadastral value and floor plans.
Properties Where the DIA Applies
A DIA must be provided for all new-build properties, any properties that have undergone structural alterations since the last sale, and rental properties. The type of DIA will differ depending on the property.
Asking for a DIA
If you make an enquiry about a property which is for sale, then it is the legal requirement of the real-estate professional to provide you with a DIA, and you do not have to ask for it first. In the case of the Rental DIA, this must be handed over by the agent when the client asks for it and at the very latest, before signing the rental contract.)
The FI
The FI, or Ficha Informativa, is a similar document to the DIA, containing a similar amount of information about the property. The main difference is that the FI is only necessary for resale properties that have not had any alterations made to them since they last changed hands.
The Nota Explicativa
The Nota Explicativa is a very detailed document which is required for all new-build and resale properties. It includes details about the price of the property, the costs involved in purchasing it, the accepted methods of payment, and numerous other details. As with the DIA and FI, it is a free piece of documentation.
It is handed over to the customer at the same time as the DIA or FI, and you will be required to sign to confirm that you have received it. This also carries the benefit for the real-estate agent that after you have signed it you cannot then go to the buyer directly without the agent receiving commission.
Property Advertising Regulations
As well as displaying the signs and providing the correct documentation to customers in regards to a property, the Decreto 218 also comes with strict advertising standards for all properties which must be adhered to.
Whenever a real-estate agent or other professional advertises a property in any format, whether that is in a shop window, in a brochure or online, it has to include numerous details about the property. These include a description of the property, details of the taxes, its location, the right to receive a DIA form when enquiring about it, and many other details in addition to these.
A More Transparent Market
Decreto 218 has led to far more transparency for customers when making enquiries about a property in Andalucia. It has been welcomed by customers and real-estate professionals alike, and even though it has created more work for anyone in the real-estate business, it has restored confidence in buyers and also helps to prevent the industry getting a bad name for itself.
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