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.
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."
5 comments
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We all know who these scoundrels are still scamming innocent future renters. Tried with me and a girlfriend. Avoid 1st M.......!!!
It's about time they cracked down on these crooks.
Johnny COK thanks. That explains it. And yes, that's the way it should be.
Morgan WilliamsIt used to be the tenant that paid the agent the commission but that's now illegal. It's the landlord that must pay the agents fee. In my opinion, it should always have been like that. It's the landlord who contracts the estate agent so should be the one to pay them. The same when you sell a property, it's the vendor who pays the agent's commission, not the buyer. I appreciate that, in practice, it's actually the buyer paying because the commission is added onto the price that the owner wants to receive.
What am I missing here? It's been a long time since I rented, but in every case where I did in the past, the agent advertising (and showing and negotiating, and drawing up the contracts) gets a commission. Often 1 months' rent. If they're (no longer?) allowed to charge commissions, then how do they stay in business?