The agency may have engaged in abusive practices against tenants in rental management, such as charging illegal fees or forcing them to hire unsolicited services.

The Ministry of Social Rights, Consumer Affairs, and Agenda 2030 has initiated new disciplinary proceedings against a nationwide real estate agency for potentially abusive practices against tenants, such as the illegal collection of commissions or requiring the hiring of unsolicited services.

This is the second proceeding of this kind initiated by the Ministry, led by Pablo Bustinduy, through the Directorate-General for Consumer Affairs, following similar action taken in late March against another national real estate agency for the same alleged abusive practices. These proceedings are part of a broader investigation launched in October 2024 into the rental property management sector. The investigation was triggered by complaints from the Tenants’ Union (Sindicato de Inquilinas), consumer organisations like CECU, FACUA, and OCU, and remains ongoing with other real estate companies, which may also face proceedings for similar or other abusive conduct.

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Consumer Affairs Opens Disciplinary Proceedings Against Second Nationwide Real Estate Agency for Abusive Practices

Violations and Legal Classification

The main practices reported by these organisations include forcing tenants to pay commissions for rental management, imposing mandatory insurance contracts, or requiring services not requested by the tenant. In this regard, Consumer Affairs emphasises that Law 12/2023 of May 24, on the Right to Housing, explicitly prohibits passing real estate management and contract formalisation costs onto tenants.

The Directorate-General for Consumer Affairs notes that these clauses or practices may constitute violations which, under the Consumer Protection Act, could be classified as:

• Serious offences, punishable by fines of up to €100,000, which may exceed this amount up to four to six times the illicit profit obtained.
• Very serious offences, punishable by fines of up to €1,000,000, which may exceed this amount up to six to eight times the illicit profit obtained.

These two disciplinary proceedings are part of a broader initiative by the Directorate-General for Consumer Affairs, which is also pursuing cases in the short-term rental sector. One ongoing case targets a large platform hosting thousands of advertisements for tourist accommodations deemed illegal advertising, and another involves companies managing tourist rentals across several regions for allegedly offering false or misleading information.

In this context, the Ministry has ordered the removal of over 65,935 illegal tourist rental ads from the Airbnb platform.

Housing as a Fundamental Right

The Ministry, under the leadership of Pablo Bustinduy, stresses that housing is a right and an essential good protected by law. Therefore, these initiatives aim to protect the right to access housing as a priority action of the Ministry of Social Rights and Consumer Affairs and to safeguard the rights of consumers.

Consumer Affairs has also engaged in awareness-raising efforts with rental market operators regarding potentially abusive behaviour in rental contracts. The Directorate-General underscores that the initiation of these proceedings does not prejudge the outcome of the investigation.