Decreto 218/2005 - Spain Gets New HIPs

March 27, 2008 - PRLog -- Duchy Estates ‘enjoyed’ an unannounced visit from a Decreto 218/2005 Inspector last month and received a fine of several thousand euros for ‘non-compliance’.  You may think us odd for airing our dirty linen in public and notifying you of our misdemeanour, but what hurt our pocket has actually improved our business, and we’d like to explain why.

Andalucian law, Decreto 218/2005, was recently passed in order to safeguard the consumer against unethical and inaccurate practices in the real estate industry.  In the same way that the UK has its HIPs (the controversial documents which intend to give consumers a clear upfront picture of what they are buying but seem to have created nothing more than headaches), Andalucia now has its DIAs and FIs.  

•   Documento Informativo Abreviado (DIA or Summarized Information Document) – this version applies to new-build properties, properties under construction, resales which have undergone architectural alterations and rental properties.  Contents include location, number of units, developer, quality report, taxes and duties, price and method of payment, licenses, maps and floorplans and so on, dependent on which type of property is being referred to.

•   Ficha Informativa (FI or Home Inventory) – this document is for resale properties, i.e. those where a second or subsequent transfer of title has taken place but which haven’t undergone any architectural alterations.  Contents include location, price, nota simple (extract from Land Registry), community fees, copy of IBI (Council Tax), utility connections, year of construction and so on.

Duchy Estates must now have these documents at its disposal and each consumer who asks for any information about a property should be given the paperwork free of charge.  In fact, they don’t even need to ask for the documents, just by making a simple enquiry about a property we are obligated to pass over the relevant DIA or FI.  Just so this is crystal clear – Duchy Estates also has to display two signs in visible places within our sales offices to state that we are adhering to legal regulations and consumers have the right to request these documents at any time.        

Hopefully these new measures will reassure the consumer that when they decide upon a new home they are making an informed decision with accurate information at their fingertips.  Furthermore, it’s yet another nail in the coffin for rogue real estate operators who won’t be able to evade the law and the Costa del Sol’s recent turbulent times will finally become something of the past.  

Contact Duchy Estates on spain@duchyspain.com, visit www.duchyestates.co.uk or telephone UK freephone 0800 849 8089 or call the Spanish office on 00 34 952 906 944.

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Website: www.duchyestates.co.uk