Decree 218/2005 - How to comply with Decreto 218

MundoMLs today hosted a very informative seminar on Decreto 218/2005, in la Cala de Mijas. Members of the comply 218 team were amongst the 100 or so real estate profeesionals in the room listening to Miguel and a panel of lawyers explain the background and details of Decree 218/2005.

I am sure that all in attendance founf d it very informative on many levels. The points that seemed “newsworthy” to will be posted later as individual posts with comments invited.

Miguel also offered to answer any questions arising from the seminar, that time constraints wouldn’t allow on the day, online - so please feel free to post any questions you may have arising from the seminar .

Questions regarding the Decreto218 law are still pouring in; we are constantly striving to answer all of your queries and concerns at all times, so if you are still unsure about anything, post your questions on to our forum. Additionally, if you have studied the law and think you may be able to help out, you may have the answer that some of our readers are looking for. Below is the latest query concerning Decreto218 to come through to Comply HQ – to view the answer or add to the debate, visit our Questions & Answers section.

Thanks for complying!

Question:

Hi

The website says that the Spanish DIA form must be used.  Can  this be completed in English or does it have to be done in Spanish?

Regards

Jane Rossi

Hudson International Properties SL

With our new “Questions & Answers…” section, the community at Comply218.com is getting involved more than ever. With Miguel Lameiro’s experience and knowledge in Spanish laws, people are feeling comfortable about asking us their doubts fearless, knowing that there are experts that are going to help them without trying to confuse or get a benefit from.

This is an excerpt from the section, a very discussed topic…

QUESTION

nick alderton Says:

We use Infocasa and share with a number of agents. Some of the agents properties are shown on our website; I have taken these off now. Can you confirm if we can advertise shared properties without directly listing them or have a DIA.

Also can you confirm if you need both the DIA and New build information sheet for off plan properties sold overseas; ie Dubai and Morocco.

Many thanks
Nick

—

ANSWER

Dear Nick,

As an intermediary (real estate agent) who is a professional charging for services, it is required to have all relevant information and documentation, whether the home is listed directly by you or by another collaborating agency. The legal requirements of Decreto 218/2005, Andalucía, does not differentiate between any of the possible number of “links” in the chain of professional involved in offering the home to the public and to clients. All intermediary real estate professionals and agencies are responsible for the required information and documentation.

Regards,
Miguel Lameiro

As you can see, now you can ask an expert directly from Comply218.com if you can’t find the information that you are looking for in our site. But don’t forget to check out all of our sections before, your question could have been answered earlier!

Note to all Private Landlords and Vendors…

After further research, we can now confirm that private vendors and private landlords are exempt from the new Decreto 218/2005 law. The rules and regulations only apply to real estate professionals, so if you are advertising your property on an FSBO site (For Sale By Owner) or are renting your property privately, you DO NOT have to comply with Decreto 218. We hope this clears up any confusion.

Thanks for Complying!

If you managed to stay awake while reading through the English translation of the Decreto218 Law (which is now Printable, so why not take it out on to the terrace with a [very] strong coffee?), a few thoughts are likely to have hit you. The first is probably “Come again?”; while the second may well have been “Ok, but that could mean any number of things…” Far be it from us to suggest that the law is intentionally arcane and obdurate, but it certainly seems open to various interpretations. Hence, and triggered by the comments being raised in Your Questions, the following statement is our latest take on the matter:

Just a note to all of the unanswered questions appearing on the boards thus far…

From our understanding of the law, and our dealings with agents already directly affected by it, our advice would be to err on the side of caution, ie, if you are unsure enough to ask the question, then make provisions to cover your back. The law is lengthy and complicated, so it is a far more sensible option to cover all bases. So, if you are only renting out your property short term, for example, why not just compile the relevant info on the DIA? As we have stated, and until we know otherwise for sure, it is unclear whether this is necessary. However, far better to spend minutes and man-hours than fines and Euros! As ever, we will bring you further updates/news when we have it. Until then, keep asking – and answering – questions.”

We are working hard here at Comply 218 to give you the most useful information about Decreto 218, and now we are very pleased to bring you a Decreto 218 English Version with the official information of this Spanish Law translated into English!

Check out our Decree 218 Download Section to get a copy right now!

Please, note that this is not a legal translation, and it’s provided as is without any warranty for accuracy whatsoever.

The Decreto 218 affects everybody who is looking to rent a property in Andalucia, so if you are a prospective tenant or your company deals in rental properties, read on to ensure that you comply with 218…

You’re a Rental Agent: If you are an agent acting on behalf of a landlord, you need to do the following:

• Print off and fill out a Documento Informativo Abreviado (DIA – Download DIA form here).
• Have enough copies to hand to ensure that every prospective tenant who views a property and asks for a DIA can be given a clean, fresh copy, free of charge, upon request.
• Give a free, printed and completed DIA to the tenant upon their signing of the rental contract – whether requested or not, it is now compulsory to do so.

You are a prospective or existing tenant: If you are currently renting a property, or are in the process of seeking out new rented accommodation, you can choose to do the following:

• Request a fresh, printed and completed copy of the property’s DIA
• Expect to be given a completed DIA form upon signing a rental agreement – although it is advisable to request to view a copy before agreeing to sign a rental agreement. That way, you are armed with all the necessary information required to make an informed decision.

This law is being enforced NOW, so do not hesitate to follow suit,– you do not want to be hit with a hefty fine now, do you? Thanks for Complying! Check back soon for more updates on Decreto 218/2005.

A fine of €1,000 for not displaying a Decreto 218 Notice in a visible location in the office…an €800 fine for not providing Spanish-language descriptions for properties in the window display…and a €2,800 fine for being unable to present the necessary information on a randomly-chosen property…Adam Gale, Managing Director of Duchy Estates, is now painfully aware of just how serious the new Decreto 218 Law is being taken.

“We received a visit from the Junta (Council Officials) in November 2007 and, without warning, were fined for not complying with the Decreto 218,” says Adam, whose company was one of the first to be visited as part of the council’s crackdown on compliance of the new law. “After we were fined, we received no help or guidance from the council about what the law was, so we had to conduct our own research into it and find out how best to abide by it.”

The Decreto 218/2005 was passed in 2005 and became law in late 2006. However, it has only been very recently that the Junta de Andalucia has started to check that real estate professionals are complying with these new regulations. “Most agents and consumers we speak to are absolutely unaware of the law,” continues Adam. “And there’s virtually nobody who understands it fully – the official website has the full law in Spanish only, and even that is rather confusing. Hence the reason why there is such a clamour for information about it.”

Duchy Estates’ experience has been echoed by Engel & Volkers, who themselves have also received a visit from the Junta and the subsequent fine for non-compliance. So how can you be sure, as a real estate professional or a consumer, that this new law is being followed to the letter?
First things first – every office that is in the business of selling property in Andalucia (whether the actual property is in Andalucia or the contracts are signed in Andalucia) must display a Decreto 218 Notice (download Decreto 218 Notice Example), or face a fine.

Next, every property that the real estate agent or developer has listed for sale or rent – either on a website or in a shop window – must display the property description in Spanish (other languages can also be displayed, but Spanish MUST be displayed) or face a fine.

Thirdly, every property listed for sale or rent must have accompanying it a Documento Informativo Abreviado (or DIA for short – download DIA example) or, again, face a fine. This document must be provided free, and in printed format, to every individual that views a property, listing the following key details:

- Basura Tax (Rubbish tax).
- Nota Simple (Information about the property and any debts outstanding on it)
- Catastral Value of the property (used to calculate the IBI receipt value)
- IBI Receipt (The rateable value of the property according to the town hall)
- First Occupancy Licence
- Community Fees
- Details on the community

In addition, developers must ensure that they provide agents and consumers with floorplans on a scale of 1:100, instead of the normal 1:1000. Adam foresees numerous problems with these new regulations. “It is an incredibly time-consuming practise to translate every property description on our books into Spanish, as is gathering together all of the relevant paperwork, IBI bills, community fee info, etc…”

“However,” he states, “Developers and agents that deal in new build properties have an even more difficult task. Printing 1:100 floor plans will result in greater printing costs [A3 will no doubt be required in abundance], simply adding to the difficulty in what is – as we all know – a tight market at the moment.”

Adam’s colleague at Duchy Estates, Daniel Lloyd, does, however, see some benefits for Costa del Sol’s real estate industry in the long run. “If consumers in the UK, for example, became more aware of these new practises and regulations,” he says, “then the public’s perception of the property market here on the Costa del Sol could change for the better.” Not only will the market be more professional and transparent for the home buyer, but any real estate professional that fails, or is unwilling, to comply with the Decreto 218 will surely not be around for too long, ensuring a greater share of the spoils for those real estate professionals that do comply.

Ignorance is most certainly not a valid excuse. All real estate professionals need to be able to adapt and adopt, otherwise they will face the consequences. “The market is tight at the moment,” concludes Adam. “So this additional expense – both in terms of time and money – is not what most agents need.” However, if this extra care and attention to each property leads to greater consumer confidence, then everyone – buyers, seller, agents and developers - is a definite winner.

Don’t get caught out!

Comply218 recently spoke with Adam Gale, Managing Director of Duchy Estates, and discovered that the inspectors are already doing the rounds, with fines for non-compliance being handed out indiscriminately.

Full interview posted here soon, so watch this space!

Queries from agents are already pouring in. Below is just an example of the kinds of questions being raised:

“Hi

Having just been informed about the changes, could someone please send me a list of the required forms we have to collect from the seller of the property?

Your help is very much welcomed.”

Well, first of all, you can check out our latest posts to find related information, or use the search bar to find a specific thread or phrase. If you can still not find what you are looking for, check out our Downloads Section. Here you can find useful documents that will help you to comply with Decreto 218.

The required forms you have to include in the DIA (Documento Informativo Abreviado) that must be enclosed with any property offer can be downloaded right here. Click here - Informative Document on Property for Sale for an example of the forms that you are required to fill out (you can modify it for rentals according to the official Decreto specifications); located in our Downloads Section. Filling out this document properly should ensure that you are following the correct procedure at all times.

If you have any further queries, questions, doubts or comments to add, please feel free to post your thoughts, tips, advice or anything that springs to mind, right here.

Thank you for Complying!