Palma is mentioned by the Consubal association. | Pere Bota

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Consubal, the consumers association in the Balearics, has formally denounced three estate agencies in Mallorca for charging illegal fees. The association's president, Alfonso Rodríguez, says that reports have been lodged with the Spanish Government's consumer directorate. On Monday, the ministry for consumer affairs announced that it was investigating a number of estate agencies for charging commissions to tenants.

Rodríguez does not wish to name the three agencies but points to activities in Palma, Calvia and Llucmajor. "Irregularities" are being committed by charging tenants an agency fee (equivalent to a month's rent) as well as charging them for the drawing up of contracts.

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He explains that agencies cannot charge any commission. "They can only charge for management that is entrusted to them." Another irregularity that Consubal has come across is the charging of commissions for showing a property. A complaint about this has yet to be sent to the ministry.

Rodríguez suggests that it has become increasingly common to charge for contracts. "The tenant is not obliged to pay for this, it is something that corresponds to the owner." Fraudulent practices can lead to significant fines. Charging for unsolicited services or engaging in unfair commercial practices are considered serious offences and are punishable by fines of up to 100,000 euros.

The former president of the association of real estate agents in the Balearics, Natalia Bueno, believes that agencies that flout the law should be named. She adds that there are cases of "extortion". "For long-term rentals, agencies cannot charge tenants anything for any reason."