Through the introduction of a mandatory real estate register, known as the Registro de Agentes Inmobiliarios de las Islas Baleares (ROAIIB), real estate agents are required to prove their qualifications and professional suitability in order to register. With this, the Balearic government aims to exclude so-called “amateur agents” and better protect both buyers and owners.
Important regulations of the new real estate agent law:
- Obligation to register in ROAIIB: All real estate agents on Mallorca had to register in ROAIIB by November 9, 2024, to be allowed to operate legally.
- Requirements for registration:
- Local address: The agent must have a private or business address in the Balearic Islands.
- Proof of experience or training: Accepted is at least four years of professional experience in real estate, a university degree in a relevant field, or a completed 200-hour course with an accredited provider.
- Liability insurance: Coverage of at least 100,000 euros is mandatory to secure possible claims for damages.
- Deposit insurance: If agents accept down payments directly, deposit insurance of 60,000 euros is required. If the down payment is managed through notary accounts, this obligation does not apply.
- Different requirements depending on the form of business:
- Individual agents (Autonomo) must fully meet all four requirements.
- Companies (S.L.) have some flexibility: Either the managing director or an authorized signatory must meet the requirements and be registered.
- Further regulations from November 2024:
- All real estate contracts must contain an official registration number and be correctly documented.
- Properties may only be advertised if there is a valid contract between the owner and the agent.
Aim of the law:
The new real estate agent law in the Balearic Islands aims to create greater transparency and security and strengthen confidence in the real estate market. The registration and mandatory insurance are intended to minimize the risk for buyers and sellers and ensure that only qualified professionals work as real estate agents in Mallorca.
