In the past, becoming a real estate agent in the Valencian Community was quite easy. Anyone, regardless of training or qualifications, could enter the field and engage in property sales. Unfortunately, this led to unscrupulous individuals taking advantage of the system, harming both buyers and sellers.
To address this issue, the Valencian Community government has introduced a new law – DECREE 98/2022 – effective from October 16, 2022. This decree aims to regulate the real estate sector, ensuring professionalism and protecting consumers.
- Registration Requirements: From October 16, 2022, estate agents operating in Alicante, Valencia, or Castellon must register with the Valencian Community to sell properties. They have 12 months from registration to prove they meet the criteria.
- Location and Transparency: Estate agents need a physical establishment open to the public, unless they exclusively offer services online. They must provide essential information about their business, including their professional identification, location, insurance or financial institution details, and registration number in client contracts.
- Professional Qualification: Agents in the provinces of Alicante, Valencia, and Castellon must show they are qualified for the job. This can be through:
- Owning an official Real Estate Agent title.
- Holding a university degree in relevant fields.
- Completing certified real estate training courses.
- Solvency Requirements: Agents need to demonstrate financial stability to ensure client protection:
- Maintain a bank guarantee of 60,000 euros (or 300,000 euros for online-only agents) per establishment, per year.
- Carry professional civil liability insurance covering potential professional negligence claims. The coverage should be a minimum of 600,000 euros per claim (1,000,000 euros for online-only agents).
Why These Changes Matter:
The new regulations bring much-needed professionalism and transparency to the real estate industry in the Valencian Community. Buyers and sellers can now trust that registered agents have the necessary qualifications and financial safeguards in place.
With the implementation of DECREE 98/2022, the Valencian Community is taking a significant step towards ensuring fair and secure real estate transactions. From October 16, 2022, buyers and sellers can confidently work with registered agents, knowing they have the skills and resources to provide reliable service. As consumers, it’s essential to inquire whether your chosen agent has fulfilled these commitments, promoting a safer and more trustworthy property market for everyone.
RAICV 1494 / API# 00608