Mallorca

New Regulations for Real Estate Agents in the Balearic Islands

New Regulations for Real Estate Agents in the Balearic Islands

Mandatory Register Introduced to Enhance Transparency

After years of advocacy by COAPI (Official Association of Real Estate Agents in the Balearics) and ABINI (Association of National and International Real Estate Agents), a new law has been passed to enforce stricter regulations in the Balearic property market. The legislation introduces a compulsory register of estate agents, aimed at improving professionalism, security, and transparency in real estate transactions.

Key Changes Under the New Law

  • Estate agents must register within six months of the law’s publication in the Official Bulletin.
  • Agents must meet strict operational standards, including:
    • Demonstrated industry knowledge and experience.
    • Legally binding marketing contracts.
    • A local business address to maintain accountability.
    • Civil liability insurance for consumer protection.
    • Ongoing professional training.

Why Was This Law Introduced?

Since a 2000 decree deregulated the sector, the absence of clear professional standards has led to an increase in unqualified agents, a decline in professional integrity, and a rise in unregulated property transactions. This law is designed to correct these issues by ensuring only competent and accountable agents can operate in Mallorca and Ibiza.

Impact on Consumers

For property buyers and investors, the new regulations will make it easier to identify licensed agents, increase trust in real estate transactions, and promote a more professional market.

Compliance and Penalties

Estate agents who fail to register within the six-month timeframe will be operating illegally and may face penalties, including fines or restrictions on conducting business.

A conference discussing these regulatory changes was held at the Lawyers College in Palma, where industry leaders outlined how the law will help restore confidence in the Balearic real estate market. The introduction of this framework marks a significant shift towards a more structured and transparent sector.

For further details, you can read the full report on the Majorca Daily Bulletin.

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