Unauthorised practice has always been detrimental to the real estate profession. It's a recurring issue in the industry because no official qualification, licence or certification is required to work as a real estate agent. As a result, the Balearic Government has decided to regulate the business activity of real estate agents to avoid scams and eliminate unfair competition. To that end, the Conselleria de Mobilitat i Habitatge (Regional Ministry of Housing and Mobility) has prepared a decree that, if all goes well, will be approved in early 2023.
At Berkshire Hathaway HomeServices Nova Mallorca, we understand the importance of regulating the activity of real estate agents in the Balearic Islands, which is why we want to share all of the details of this new rule with the readers of our blog.
The Balearic Government's decree regulating real estate transactions will require all professionals to file a liable declaration of commencement of activity in which they commit to carrying out their functions by all legal requirements. According to the Conselleria de Mobilitat i Habitatge, this declaration is mandatory to practice as a real estate agent, and failure to present it may result in severe penalties.
On the other hand, the decree will require real estate agents to obtain civil liability insurance with a minimum capital of €100,000 per claim and €600,000 per year to cover damages and losses that may occur during their business activity.
It is worth noting that the new decree includes the creation of a Register of Real Estate Agents. While registration is voluntary, it is only available to those who are adequately qualified and trained. Furthermore, the Balearic Government will issue a seal of quality to registered professionals, informing consumers that they possess the required skills and expertise to practice the profession.
Real estate agents must have a university degree in social and legal studies, engineering, or architecture to be eligible to join the Register. Or a non-university education of at least 200 teaching hours related to brokerage, consulting, and managerial services; or at least four years of demonstrable experience as a real estate service provider.
With the entry into force of the new decree, the Balearic Government aims to improve transparency in the real estate sector, end illegal practices, protect consumers and eliminate fraudulent real estate transactions.
We are committed at Berkshire Hathaway HomeServices Nova Mallorca to making our clients feel confident, at ease, and satisfied with our services and expertise. To achieve this goal, we rely on a team of over 20 real estate experts who exemplify our company's core values of honesty, thoroughness, and transparency. Do contact us if you would like more information on our luxury properties on the island.
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