Cancellation of an intermediation contract due to abusive charges: keys to prevent your company from engaging in illegal practices

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The recent ruling by the Court of First Instance No. 49 of Madrid has shed light on a practice that, although common in some rental intermediation services, is illegal and punishable: imposing additional services on the tenant at a disproportionate cost and without clear consent.

Cancellation of an intermediation contract due to abusive charges: keys to prevent your company from engaging in illegal practices

 

This judicial ruling —final and not subject to appeal— should serve as a warning for real estate SMEs that manage leases or provide services related to housing rentals.

What happened in this case?

The intermediary company forced the tenant to contract a supposed "tenant assistance service" whose cost was identical to the sum of the rent and the security deposit.

Furthermore, the existence of this additional service was only communicated after selecting the property, without appearing in the lease agreement.

Basis of the ruling: why the contract is declared null and void

The court classified the business conduct as:

  • Abusive, for imposing an unsolicited service.

  • Coercive, taking advantage of market pressure.

  • Deceptive, by concealing essential information.

And emphasized:

  • The infringement of the consumer's right to receive clear and transparent information.

  • The vulnerability of users in the Madrid rental market.

  • The lack of real free choice by the tenant.

As a result:

Implications for SMEs in the real estate sector

This resolution makes it clear that:

1. Additional services must be voluntary

Any extra service must be expressly requested, never imposed.

2. Transparency is mandatory

All costs and fees must be detailed and explained before signing the contract.

3. Amounts must be proportional

Charging an amount equivalent to rent + deposit for an ancillary service constitutes an abusive practice.

4. Contractual ethics are essential in a tense market

Strengthening clear and respectful policies with consumer regulations prevents claims and protects the corporate image.

Acting with transparency, proportionality, and informed consent not only ensures legal compliance, but also promotes trust and reputation in a particularly sensitive market.