Costa News Spain Breaking News | English News in Spain.
Monday, 17 March 20, 25 at 18:28
A woman was able to recover 1,100 euros out of the 1,633 she had paid for “management charges” to an agency. This charge was deemed illegal after the recent change to the law on urban leases. The agency forced the tenant to sign two contracts, one with the landlord (standard lease contract) and another with the agency. This required the tenant to pay a month’s rent plus 21% IVA for “compensation of property search and location service”.
The woman paid the estate agent 1,633 euros in accordance with her second contract but asked for a refund once she settled into her new Madrid home.
The agency, however, ignored the tenant’s complaints, despite that the second contract lacked any legal basis. The tenant then turned to Facua, a consumer’s organisation for help. Facua claims that the updated law for urban leases prohibits any fees or “management cost” from being charged to tenants by real estate agents. Facua complained to the consumer authority about a violation in housing regulations. The agency then agreed to refund the woman, 1,100 euros, to avoid a court case.
Before the change, this commission was paid by the landlord if the legal entity was a company. If the landlord was a natural person, it was agreed between the tenant and landlord. The new regulations state that this payment is always made by the landlord regardless of the status (legal entity or natural person).
It is important that tenants read their contracts carefully to avoid paying illegal “management fees”. Look out for misleading terms like “feasibility studies and economic solvency”, or services described simply as “provided” without specifying which ones.
