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El blog de Maria

Your daily Spanish Law reporter. Have it with a cafe con leche. www.costaluzlawyers.es

Legal tip 1238. Legal help for mortgage debtors in Spain 5
Tuesday, December 2, 2014 @ 3:22 PM

Paying a mortgage on a property which has no license?

A topic quite unexplored yet but interesting enough

I would certianly go against Valuators in those deals. They should have never given to those properties the high value they did.

Finances Department in Spain made obligatory in 2003 the checking on licenses for these valuations:

Article 7 Minimum Checks

1. To determine the  value, it is necessary to know the characteristics and actual situation of the asset being valued , and the contents of the documents referred to in Article 8 of this Order shall be used.

2. Checks that the preceeding paragraph refers to, shall include at least the following:

a) Physical identification of the property, by its location and visual inspection by a competent technician, checking if its surface and other characteristics match the description recorded in the documentation used for valuation, as well as the existence of visible easements  and its apparent state of construction or preservation.
b) State of occupancy of the property and use or exploitation to which it is intended.
c) In case of housing, public protection status or regime.
d) Architectural heritage protection system.
e) Adequacy of  property to enforceable urban planning  and, where applicable, the existence of the right to urban use whioch is being valued.

A street of Algodonales, Cádiz, Sierra of Grazalema, South of Spain



Like 0




3 Comments


hosilverlining said:
Thursday, December 4, 2014 @ 10:40 AM

Thank you Maria for this useful information which may help us in some way. We have a licence, but it should have been clear to the bank that the licence was not correct, due to the inclusion of two conditions relating to the basic services of water and sewage which were not finished when the licence was issued. We now understand that it is not legal to include any conditions about such basic services. Should we assume that the bank when financing a development of 198 properties would have had the legal expertise to notice this type of discrepancy, and act on it? Seems to me that the bank was not even looking after its own interests when they offered mortgages based on a flawed licence of occupation.


mariadecastro said:
Thursday, December 4, 2014 @ 10:50 AM

Thanks Hosilverlining!
I can offer to you my opinion if you send full documents to me.
Cheers+
María


hosilverlining said:
Thursday, December 4, 2014 @ 12:17 PM

Thanks María,

I have sent the licences to you by e-mail.

Gracias.


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