Andorra Approves Bill for Stricter Real Estate Agent Regulations

The Andorran Council of Ministers approved a bill on Wednesday to regulate the Official College of Real Estate Agents and Managers, introducing stricter entry requirements and enhanced client protections.

The reform mandates that new professionals hold a university degree at level 6A and complete a specific postgraduate course at the University of Andorra. Membership in the college will become compulsory to practice, requiring proof of full civil and political rights, no convictions for certain crimes, no incapacity or incompatibility, government authorisation, and a B2 level of Catalan. Each agent or manager must also secure professional civil liability insurance with at least €750,000 coverage.

The legislation defines the profession's scope, including intermediation in property sales and rentals, commercial valuations, and asset management. These activities will be reserved exclusively for qualified professionals, excluding private individuals selling their own properties, public administrations, the National Housing Institute, and entities promoting affordable rentals.

To boost transparency, agents must provide written information on property features, transaction conditions, charges, expenses, and fees. All contracts will require written form with reinforced pre-contractual details to enhance legal security.

The bill combats unqualified practice and fronting arrangements by limiting multi-ownership of agencies, prohibiting nominees, demanding transparency in company ownership, and requiring at least 51% of a firm's share capital to be controlled by a college member—except in multi-professional partnerships. It also addresses conflicts of interest and sets civil, penal, administrative, and disciplinary responsibilities, with the college taking over supervision and enforcement from the government.

The college must be refounded with 51% approval from members at the law's entry into force. The bill, developed with sector input and shared with the General Council's Economy Committee, is set to enter parliamentary process next week.

Minister of Tourism and Trade Jordi Torres described the changes as essential to update a 2000 law unchanged since enactment and unaligned with 2008 professional college rules. "Real estate activity directly impacts housing, investment, and legal security, requiring adaptation to market and societal demands," he said.

Currently, around 300 professionals are college members, while over 700 hold authorisation to practise, though many lack registered businesses. Existing authorisation holders will automatically join as non-practising members. Those wishing to practise have a two-year transitional period to regularise, followed by a University of Andorra refresher course—without needing the new university degree. College members by end-2025 and those completing or enrolled in the 2025-2026 course with a business open or pending avoid new academic rules.