On the 27th June 2018 came into force the new Home Law of the Illes Balears. We already spoke about this project of the Law beforehand and now, at last, has been published the final regulation text. Although this Law regulates very interesting areas from a social point of view and is focused to those most disadvantaged, particularly keeping in mind the present situation in the islands, where many families are unable to gain access to a decent quality home, we prefer not to delve into this matter but concentrate on the practical aspects that this Law will imply in our every day, as professionals in the real estate and planning area.

1. The necessity of providing the housing certificate

The most important point that we must keep in mind as from now, is that as per art. 16, «in any transfer for sale, rental or transfer of use, must be incorporated a copy of the valid housing certificate or, if not, the final classification. Should neither the housing certificate nor the classification be available, this must specifically be mentioned in the contract or deed.»

Moreover, on not doing this it would be considered as a minor infringement (art. 86 l) and is subject to a fine of 60 to 3.000 euros (art. 90.1.a), although this amount could be revised in the Regulation that should be approved and that the present Law will develop. However, the fines may be lifted up to 80% if the infringement is dealt with. Also should be mentioned that these infringements expire after two years from the following day to the commission of the infringement.

2. The necessity of guarantee deposit of the rent

Although this bond was already an obligation according to our Urban Rental Law, this obligation is now reinforced from the public section, as the art. 55 states that «the people or entities renting urban properties for use as homes as well as other uses, must deposit in the department or organization who have carried out the negotiation, the bond in cash, as per that stipulated in the Law 29/1994, dated 24th November, urban rentals». The amounts are the following:

  1. A months rent in the rental contracts of dwellings
  2. Two months rent in the rental contracts for a different use to that of dwelling.

The non-observance of this obligation implies a serious infringement (art. 87.aa) with a fine (according to art. 90.2.b)  that will be «as from 35% up to 75% of the amount of the bonds or its updating not deposited, with a maximum of 9.000 euros». The same as the previous case, the fines may be lifted up to 80% if the infringement is dealt with. The expiry period will be of four years, as it is deemed a serious infringement.

In the additional sixth regulation is specified that «the necessity of the deposit of bond regulated by this Law is not applicable to rental contracts signed prior to the Entrance in force of this law, but is applicable to any later revisions after the Entrance in force mentioned.»

3. Administrative registration and requirements by the real estate agents

The third additional regulation opens the doors to establish by law «the requirements to carry out the activity of real estate agents, as well as the obligations that must be complied with in carrying out the activity, in particular the necessity of signing a commission document between the professionals and the clients of the service. An administrative registration must be set up with the object of the registration of the agents or the agencies.»

4. Other matters to be kept in mind

A sanction will also be applicable if the building book is not available or the corresponding assessment building report, as well as the inclusion of abusive clauses in the contracts of purchase/sale or rentals (this is a serious infringement, subject to a fine of 3.001 to 30.000 euros)

To peruse this matter, we will have to wait for the regulation that will develop the Law as well as all this new regulation being put into practise by the public administrations. However, please feel free to contact us, because as specialized lawyers in planning matters in Mallorca and Ibiza, we are continually updating information and wish to help all professionals or clients who are interested in being a little more aware of our regulations.


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