Is Your Javea Real Estate Agent Legal and Registered?

For over two decades, the Spanish real estate market has operated under a liberalized system, meaning that anyone—regardless of training, experience, or qualifications—could work as a real estate agent. Unlike other professions requiring formal education and licensing, the real estate sector in Spain remained unregulated, allowing many unqualified and sometimes dishonest individuals to operate as estate agents.

As a result, buyers, sellers, landlords, and tenants have often found themselves dealing with unprofessional or even fraudulent agents, leading to a negative perception of the industry. Many clients have faced issues such as poor service, lack of transparency, unethical dealings, and financial loss.

Until recently, there was no legal requirement for an estate agent in the Valencian Community (which includes popular areas like Alicante, Valencia, and Castellón) to be officially registered or legally recognized. However, this has now changed with the introduction of Decree 98/2022, which enforces compulsory registration for all real estate agents operating in the region.

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The New Law: What Does It Mean for Real Estate Agents in the Valencian Community?

On August 16, 2022, the Official Gazette of the Valencian Government (DOGV) published Decree 98/2022, which officially regulates the real estate sector and introduces mandatory registration for all agents.

From October 16, 2022, all real estate agents in the Valencian Community must apply for official registration. The decree sets specific legal and professional requirements, ensuring that only qualified, trustworthy, and financially secure agents operate in the market.

Agents who fail to register within 12 months (by October 16, 2023) will be acting illegally and could face serious penalties.

What Are the Legal Requirements for Real Estate Agents in the Valencian Community?

To ensure that only competent and trustworthy agents remain in the industry, the new law establishes three key registration requirements:

1. Office or Location Requirement

A real estate agent in Javea must have a physical office open to the public unless they provide services exclusively online via electronic or telematic means.

If an agent operates online only, they must still have an official physical address where they can handle client inquiries, complaints, and legal matters. This ensures that consumers have a point of contact and can resolve disputes in person if necessary.

2. Professional Qualification Requirement

To be legally registered, a real estate agent must prove they have professional training or a recognized qualification. There are three accepted ways to meet this requirement:

Option 1: Official Real Estate Agent Certification

The agent must own an official title as a Real Estate Agent (API). If they are a member of the Official Association of Real Estate Agents (API), they must provide proof of membership.

Option 2: University Degree in a Related Field

Agents can qualify if they hold a university degree in fields related to real estate, such as:
✔ Social and Legal Sciences (e.g., Law, Business Administration, Economics)
✔ Engineering (e.g., Civil Engineering, Urban Planning)
✔ Architecture (e.g., Real Estate Development, Urban Design)

Option 3: Specialized Training Course

Agents without formal university education can qualify by completing a certified real estate training program of at least 200 hours in subjects related to:
✔ Property Mediation
✔ Real Estate Consultancy
✔ Service Management

These courses must be issued by an accredited institution, such as public education centers, private universities, or government-approved training providers.

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3. Financial Solvency Requirement

To protect clients from fraud, financial mismanagement, or professional negligence, registered agents must demonstrate financial security in two ways:

1️⃣ Bank Guarantee (Surety Insurance)

✔ Each real estate agent must secure a minimum bank guarantee of €60,000 per office and per year.
✔ This ensures that client deposits, reservations, or advance payments are financially protected.

2️⃣ Professional Liability Insurance

✔ Agents must hold civil liability insurance that covers claims across the European Union.
✔ The minimum coverage is €600,000 per claim with a sub-limit of €150,000 per affected person.
✔ This protects clients from financial losses caused by professional mistakes, fraud, or contract breaches.

Enforcement & Penalties for Non-Compliance

The law includes strict enforcement measures to prevent illegal real estate activity. Agents who fail to register and comply with the new requirements may face severe financial penalties:

❌ Serious violations: Fines between €10,000 and €350,000
❌ Very serious violations: Fines between €350,001 and €950,000

In addition to fines, non-compliant agents may be banned from operating, and their clients could be left without legal protection.

Some agents may attempt to avoid registration, but once the first heavy fines are issued, it is expected that unqualified agents will leave the market, ensuring a higher standard of professionalism in the industry.

What Does This Mean for Property Buyers, Sellers, Landlords & Tenants?

If you are planning to buy, sell, or rent property in the Valencian Community, you must ensure that your real estate agent is legally registered.

Why Is This Important?

✔ Legal Protection – Registered agents must meet high professional and financial standards, reducing the risk of fraud and mismanagement.
✔ Peace of Mind – You can trust that your agent has the proper training, experience, and insurance to handle your transaction professionally.
✔ Avoid Scams – Unregistered agents may be operating illegally, meaning you could be at risk of financial loss with no legal recourse.

How to Check if an Agent Is Registered

From October 16, 2023, all real estate agents must be officially registered in the Valencian Community. Before working with an agent, ask for:
✅ Their official registration number
✅ Proof of civil liability insurance
✅ Confirmation of their qualifications

If an agent cannot provide these, they may not be legally authorized to operate.

Final Thoughts: Choose a Legal & Professional Agent in Spain

The new regulations mark a positive change in the Spanish real estate market, ensuring that clients are protected and that only trained, professional agents can operate legally.

If you’re looking to buy, sell, or rent property in Spain, always choose a registered real estate agent to ensure transparency, professionalism, and legal security.

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