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A woman has recovered 1,100 euros of the 1,633 euros she paid to a real estate agency for "management fees". The charge has been deemed illegal since the recent modification of the law on urban leases (LAU). The agency made the tenant sign two contracts: the standard lease contract with the landlord and one with the agency, which required her to pay one-month rent plus 21% IVA as "compensation for property search and location services".
The woman paid 1,633 euros, in accordance with the second contract, but demanded that the real estate agency reimbursed her, once she was settled in her new home in Madrid.
However, the agency ignored the tenant's claims, despite the second contract lacking any legal basis. The tenant then reached out to the consumers' organisation Facua for support. According to Facua, the updated law on urban leases bans real estate agencies from charging any kind of fees or "management costs" to tenants. Facua turned to the consumer authorities, citing a violation of housing regulations, as a result of which the agency agreed to reimburse the woman 1,100 euros to avoid court action.
Until the modification came into effect, the payment of this commission fell to the landlord in the case of legal entities (companies), and was a matter of agreement between the tenant and the landlord when the latter was a person. According to the new regulation, this payment now always falls to the landlord, regardless of their status (legal or natural person).
To avoid illegal "management fees", it is recommended that tenants carefully read contracts and look for deceptive terms such as "feasibility study and economic solvency" or services described as "provided to the tenant", without detailing which ones, among others.
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