Registry of estate agents

New Regulations for Real Estate Agents in Valencian Community

Until recently, becoming a real estate agent in the Valencian Community was very easy in fact too much so. There were minimal barriers to entry, allowing individuals with varying levels of training and qualifications to participate in property transactions. Unfortunately, this lax approach resulted in unethical practices by some, negatively impacting both buyers and sellers.

To address these concerns, the Valencian Community government has enacted a new legislation – DECREE 98/2022 – which came into effect on October 16, 2022. The primary objective of this decree is to regulate the real estate sector, fostering professionalism and safeguarding consumer interests.

Key Amendments:

1. Registration Requirements: As of October 16, 2022, real estate agents operating in Alicante, Valencia, or Castellon must register with the Valencian Community to conduct property sales. They are granted a 12-month period from registration to demonstrate compliance with the stipulated criteria.

2. Transparency and Location: Real estate agents must establish a physical office accessible to the public, unless they exclusively operate online. They are obligated to furnish essential business details in client contracts, including professional identification, physical address, insurance or financial institution particulars, and registration number.

3. Professional Qualifications: Agents in Alicante, Valencia, and Castellon provinces must furnish evidence of their professional qualifications, which can be attained through various avenues:
- Possession of an official Real Estate Agent certification.
- Attainment of a university degree in relevant disciplines.
- Completion of accredited real estate training programs.

4. Financial Stability Requirements: Agents are required to demonstrate financial stability to ensure client protection:
- Maintain a bank guarantee of 60,000 euros per establishment annually (or 300,000 euros for online-only agents).
- Procure professional civil liability insurance, covering potential claims arising from professional negligence, with a minimum coverage of 600,000 euros per claim (1,000,000 euros for online-only agents).

Significance of the Amendments:

The revised regulations aim to instill professionalism and transparency in the real estate sector within the Valencian Community. Registered agents are now expected to possess the requisite qualifications and financial safeguards, offering assurance to both buyers and sellers.

Conclusion:

With the enforcement of DECREE 98/2022, the Valencian Community has taken significant strides towards fostering fairness and security in real estate transactions. As of October 16, 2022, consumers can confidently engage with registered agents, assured of their competence and capacity to deliver dependable service. It is incumbent upon consumers to verify whether their chosen agent adheres to these standards, thereby promoting a safer and more reliable property market for all stakeholders.