Consumer opens fourth investigation into a large real estate company in three years

BarcelonaThe Spanish government announced this Thursday a new sanctioning procedure against a "large real estate company" – the executive refuses, for the moment, to make its name public – for allegedly violating consumer rights in housing matters. It is the fourth procedure on this issue opened during the legislature, which began three years ago, according to sources from the Ministry of Consumer Affairs confirmed to the newspaper ARA.

The head of the portfolio, Pablo Bustinduy, explained at a press conference that it is a "large real estate company that manages thousands of rental homes in various communities" and which he accuses of imposing abusive clauses on tenants, but the executive has refused to reveal which one it is. "The opening of a sanctioning procedure does not prejudge the outcome," the minister recalled, although he stressed the seriousness of the accusations.

Bustinduy lamented that "for a long time the rights of tenants in Spain may have seemed secondary" because public administrations "did not deal with them." Instead, he assured that Consumer Affairs acts "with total determination" to protect them. In this regard, this Thursday the minister from Sumar directly addressed tenants: "If you identify abusive practices in your contracts, report them to the authorities or consumer associations," he asked.

ratified the fine of 3.6 million euros to Alquiler SeguroThe authorities could punish each of the four infractions with fines of up to one million euros, so the total amount would reach four million. If they can estimate the profits the company has obtained from these practices, Consumer Affairs can claim between six and eight times this amount.

Two sanctions in total

Of the three proceedings that the executive has opened since the state housing law came into force in March 2023, two have resulted in sanctions. On the one hand, in April it ratified the fine of 3.6 million euros to Alquiler Seguro for imposing the hiring of a service on tenants – understood as real estate management and contract formalization expenses – and for obliging them to take out home insurance for the benefit of the lessor. Also for introducing a clause in the contract that authorizes the real estate agency to include the tenant in defaulters' files in case of non-payment of any of the amounts reflected in the contract, regardless of the cause of non-payment and even if they are not due and payable debts.

On the other hand, in December it imposed a sanction of 64 million on Airbnb

for advertising tourist apartments without a license. In contrast, it has not identified the companies it is investigating in the two ongoing proceedings, to which the one announced by Consum this Thursday is now added.