Key Points of the New Code of Good Practices to Curb Real Estate Abuse

The Government of the Canary Islands has unveiled the Canary Islands Real‑Estate Good‑Practice Code (CIVICAN), an instrument the administration describes as “pioneering” because it establishes a common framework of principles, duties and standards of conduct for buying, selling and renting property.

The code was presented on Tuesday, 7 October, with the signing of the document by the Ministry of Public Works, Housing and Mobility and the Canary Association of Real‑Estate Management Companies.

CIVICAN sets out guiding principles such as transparency, equality, non‑discrimination, legality and the protection of consumer rights. It also incorporates supervision and arbitration mechanisms to resolve disputes, together with an official seal that will allow the public to identify agents who adhere to the code.

The code further aims to:

• Disseminate public housing policies,
• Facilitate access to subsidies, and
• Promote the use of contractual guarantees that provide economic and legal security for both owners and tenants.

Compliance will be mandatory for all agents that adopt the seal, which can be withdrawn in case of breach. However, joining the code remains voluntary for professionals.

The full document, published by the Government of the Canary Islands, results from a joint effort between the Ministry and the main sector associations and targets the principal problems identified in the housing market—lack of information, unbalanced contracts, discrimination in housing access, legal insecurity and low professionalisation.

Key Elements of CIVICAN

Transparency and Accurate Information

One of CIVICAN’s pillars is the obligation to provide complete and clear information before any contract is signed. Agents must give clients data on:

• Property size,
• Encumbrances,
• Energy rating,
• Actual condition of the dwelling, and
• Final price.

Standardised contract templates, validated by a monitoring commission, must be used to eliminate deceptive practices and ensure buyers or tenants “know exactly what they are signing”.

Fairer, Balanced Contracts

The code explicitly bans abusive clauses and requires contracts to be written in plain language. It establishes a right of withdrawal and reinforces genuine negotiation between the parties, aiming for agreements that are fair and understandable for all involved.

Equality and Non‑Discrimination

CIVICAN introduces, for the first time, a principle of equality in real‑estate transactions, prohibiting any exclusion based on origin, age, sexual orientation, disability or economic status. It also foresees institutional campaigns against discrimination in housing access, a practice that is hard to detect but persists in the rental market.

Legal Security and Economic Guarantees

The text promotes the use of payment‑default insurance and government‑backed guarantees, obliging agents to inform clients about these tools. It also encourages continuous training for real‑estate agents on leasing matters, to balance the relationship between owners and tenants and foster a more stable, accessible market.

Claims and Mediation

To resolve conflicts quickly and cost‑effectively, adhered agencies must provide:

• Customer‑service desks,
• Complaint‑handling sheets, and
• Participation in a consumer arbitration system.

The CIVICAN Monitoring Commission can impose sanctions for non‑compliance.

Professionalisation and Control

Only professionals registered in the Canary Islands Real‑Estate Agents Registry, with civil‑liability insurance and a surety bond protecting client funds, may join the code. The Commission can withdraw the seal from those who breach the rules.

Public Information and Citizen Support

CIVICAN also calls for the creation of an Real‑Estate Information Office, staffed by adhered agents, to offer advice and mediate disputes. This office will serve as a channel for information on public housing policies, subsidies and administrative procedures.

A New Real‑Estate Culture

According to the regional government, the ultimate goal of CIVICAN is to restore trust and professional ethics in the sector. The code tackles three major shortcomings:

1. Mistrust caused by insufficient information,
2. Inequality stemming from abusive practices, and
3. Legal insecurity due to lack of oversight.

With these measures, the administration hopes to “transform buying or renting into a transparent, safe and fair process”.

“Removing from the market those who do not meet real‑estate standards”

Pablo Rodríguez, Housing Minister, emphasized that CIVICAN “is not limited to regulating economic transactions; it represents a crucial step in building a life project for Canary families.”

Rafael Tarajano, President of the Canary Association of Real‑Estate Management Companies, hailed the agreement as “a tool that dignifies the profession and recognises agents who do things right.” He added that the combination with the Agents Registry “will allow us to identify responsible operators and remove from the market those who fail to meet the minimum standards society deserves.”

Javier Terán, Managing Director of VISOCAN, noted that the code “offers owners and tenants the peace of mind that their transactions are carried out with full ethical and legal guarantees.” He concluded that public‑private collaboration “strengthens confidence in the real‑estate market and can help bring more housing onto the market.”

Adherence to CIVICAN is voluntary, but compliance will be mandatory for all agents listed in the Canary Islands Real‑Estate Agents Registry. The Ministry stresses that the code’s success will depend on its real‑world application and the commitment of professionals to make the Canary real‑estate market a more reliable, fair and transparent environment.