BUSINESS Law & Ethics
Different countries, different rules. So which do I follow?
Does doing business across borders mean conflict? The problem:
I am an estate agent based in Spain but sell property in several countries, including Brazil and Italy. I am GIPE qualifi ed. I am also a member of AIPP. I am confused about which regulations I need to follow. The rules in Spain, the rules in Brazil or Italy, the rules of GIPE or the rules of AIPP? Sometimes they are the same but sometimes they diff er quite a lot. AIPP also has a code of ethics. How does that fi t in?
P
rimarily, if you operate in Spain as a qualifi ed and licensed Estate Agent, you must follow Spanish Law. According to Spanish Law,
conditions for the exercise of the Real Estate activities are regulated by Real Decreto 4/2000. Article 3 states that an Estate
Agent is free to exercise his sales activity freely without being in possession of any title or ownership to any Offi cial Association. However, many agents are licensed and qualifi ed professionals. This qualifi cation may be as an “API” (Agente de Propiedad Inmobiliaria) or “GIPE” (Gestor Intermediario de Promociones y Edifi caciones). The two organizations
mentioned above are a good indicator that your Real Estate Agent knows what he is doing. Both organizations have a self- regulatory code of good practice. GIPE is a Professional Association of Intermediaries Managers in Property Developments. The most qualifi ed professionals in the real estate fi eld are registered as GIPEs.
It does not appear to be the case
that you cannot be a member of the AIPP if you are already a GIPE. However, this double membership
might cause a confl ict. In the event of a complaint received before both Associations, there might be diffi culties in resolving the problem. API and GIPE, being licensed
agencies, in Spain, are bound by strict codes of practice. They are the only Spanish legally recognised bodies. By way of their obligations, which follow as a result of AIPP membership, agent and developer members of AIPP are bound to resolve their disputes by the procedures as set out in the rules of membership, if the other party so wishes. Theoretically, you could, as a
result of the membership of two separate organisations, be open to two penalties or sets of sanctions. In my view, it all depends on which country you sell properties in. • If you sell properties to English buyers based in the UK, it would be advisable to be a member of AIPP.
• If you sell properties to Spaniards, your audience will be aware of your professional qualifi cation as a “GIPE” and rely on your professional advice. • API and GIPE licensed agencies are bound by strict codes of practice. They are the only Spanish legally recognised bodies.
On the other hand, if you trade
It depends on which countries you’re selling in
under one company and sell to Spain and England, you could consider separating the business. This means, you could deal in England as an AIPP Member and leave the original Spanish Company as a member of GIPEs. The same principles would apply
to Brazil, Italy or whichever country you are selling properties in.
77 Differing rules could be trouble
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