Legal listing requirements

Laws for the advertisement and marketing of properties for sale and for rent in Andalucía

Marcelo Masri – Conveyancing Dept. Irwin Mitchel

 Regulatory Framework Decreto Ley 218/2005, enacted on the 11th day of October 2005. Aimed at increasing transparency in conveyancing and availability of information toprospective buyers.

“Cards on the table” approach.

Introducing the “Documento Informativo Abreviado” (aka HomeInformationPacks)

What information must be included in any Advertisement offering properties to the general public?

Current status: built, in construction or off-plan.

Location Details of the developer.

Units If any indication is made as to no. of bedrooms, garage, etc you must specify square metres.

If any indication is made as to purchase price, you must specify any general expenses and taxes to be paid by the buyer.

For off-plan or unfinished properties, the advertisement must indicate:

 – that any amounts paid in advance shall be guaranteed in accordance with the Law

– Name of financial institution guaranteeing the development.

– Policy number

– Existence of Special Bank Account and CCC number

 – Whether any monies paid in advance is being paid as part of the purchase price or under a different type of reservation agreement.

Consumer’s right to request their copy of the Documento Informativo Abreviado (Home Information Pack), which you should have available to them.

Home Information Packs Off-Plan or Unfinished properties

 – Details of developer.

– Details of agent.

 – Details of builder/construction company, as well as architect and works director (if appointed).

– Maps locating the property in the development and individual plans (including any garages or storerooms)

 – Built surface area. Total surface area of any garages or storerooms – General description of the property

– General description of the building or urbanization

– Outline of Specifications

– Purchase price (garages, storerooms separate).

Taxes and expenses to be borne by the Buyer as well as payment methodology.

– Payments in advance. Characteristics.

– Developer’s current legal title. Charges and encumbrances.

 – Building works licence ready for inspection.

– Current stage of the building works.

– Estimated delivery date

 – Description of the purchase contract to be signed

 – Declaration that all the documentation above can be verified as per Buyer’s request.

Information Packs First and subsequent transmissions

 – Detail the existence (or inexistence) of all administrative licences in place.

 – Registration details

 – If applicable, mention the consumer’s right to obtain copies of the Community of Owners bylaws, bank statements, contracts, etc,

– Quota the property is obliged to contribute.

– Detail the existence (or inexistence) of any insurances for new construction available; insurance company, domicile and policy numbers.

 Signs

Article 12 – Decreto 218/2005 Since January 2006, any establishments offering real estate services must exhibit the following sign:

“El consumidor tiene derecho a que se le entregue una copia del correspondiente Documento Informativo Abreviado”

Consequences of Infringement

 – Inspections and sanctions

 – Denuncias from unhappy customers which must bedealt with in accordance with the Law

– Reputation