Real Estate Regulation in Mallorca - What does it mean for sellers & buyers?

Ley 3/2024, de 3 de mayo, de medidas urgentes en materia de vivienda

Real Estate Regulation in Mallorca - What does it mean for sellers & buyers, for many years the real estate market in the Balearics has been likened to the wild west, anyone could ride in, mobile phone in hand, set up a website, scam some photos from the internet and declare themselves a real estate agent. 

Since 1985 Imperial Properties has been offering unbiased and honest advice and in the last 3 years we have invested heavily in preparation for the passing of this new law that truly means...... 

The end of the wild west has arrived

This situation that was entirely unregulated, unlicenced, uncontrolled and frankly risky has finally come to an end.  Both vendors and buyers were at risk from bedroom & "hobby" agents who had no affiliation with any trade body, no insurances, often little experience and provided no official recourse if things went amiss with a sale or purchase.

 After much political pressure and a big dose of common sense, the recently published law "Ley 3/2024, de 3 de mayo, de medidas urgentes en materia de vivienda" sets strict rules and entrance qualifications to obtain an official registration number, therefore allowing a person or company to act in any way as intermediatory agent in a real estate transaction.

The key benefits to you the consumer are 

• Open, honest and traceable advice.
• The agent you deal with by law must abide by the regulations to protect the consumer such as;
  • Having premises that you can visit
  • Having necessary insurances in place to both protect any deposits and professional indemnity against any errors they may make that damages you
  • Have fully trained personnel available at each office location to advise on your rights and advise on your transactions
  • Hold a registration number from the Balearic register of real estate
  • Be a member of a professional trade organisation
  • Hold required permits to trade
  • Obtain all information regarding to a property before marketing in any way

Each agency will be obliged to show their registration number alongside all marketing. This is key in knowing that you will be dealing with an accredited professional and in fact it will be illegal to present any real estate offering without the correct real estate registration number in the future and to do so will compromise both the buyer/seller and the agent into an illegal transaction. Fines and various other punishments will be levied for those who choose to ignore.

There are many other elements to the registration and operation designed to protect the rights of the consumer in a real estate deal, however, be assured that from now onwards, the wild west has ended, long live clean, normalised and traceable real estate transactions in Mallorca.

Imperial Properties are fully committed to this fundamental change in the operation of real esate in Mallorca and look forward to working together towards a great next 40 years in the industry.

If you would like to study in detail the content of the new law, you can click on this link below

Ley 3/2024, de 3 de mayo, de medidas urgentes en materia de vivienda