El blog de Maria

ads said:
Friday, July 4, 2025 @ 12:47 PM

Dear Maria

A few questions relating to this important subject…..

What protections are now in place to ensure ALL deposits are safeguarded at point of purchase contract with fully transparent Bank details, namely Bank, account number, deposited amount etc named within the purchase contract?

What protections are now in place in phased developments to ensure ALL utilities are provided in advance of occupation for any relevant phase, and therefore are not reliant upon interim developer supply?

What protections are now in place to ensure communities are protected from unfair practices such as imposition of unelected presidents who fail to represent owners best interests? For instance is there mandatory requirement to ensure all owners details are held within a secure database so as to act as effective means of communication with regard to ALL matters affecting the community, including timely notices re voting, etc.

With regard to delays…how are owners now protected from spurious developer claims for force majeure such aspects as strikes, inclement weather, lack of building supplies etc? Are developers now expected to build into their contract end dates allowance for such contingencies , so as to minimise the prevalence of disputes?

What legal provision is now in place to ensure that no one can occupy their property unless final licence of occupation has been formally provided?

What protections and limits are now in place to ensure effective TIMELY legal jurisdiction can be accommodated in localities where court delays are excessive?

What protections are in place to cater for developer/ Bank appeals that overburden the legal system?

Many thanks for your continuing educative endeavours.

Kindest regards

mariadecastro said:
Friday, July 4, 2025 @ 1:02 PM

Dear Anne:

Your questions are always welcome as they offer to us the opoortunity of keeping the teaching of the off plan property buyers audience. Please have answers below:

What protections are now in place to ensure ALL deposits are safeguarded at point of purchase contract with fully transparent Bank details, namely Bank, account number, deposited amount etc named within the purchase contract?

Since the amendment of Law 57/1968 and now under the provisions of Law 20/2015 and the Insurance Contracts Act, all off-plan buyers paid once the Work License is issued must have their deposits protected by a bank guarantee or insurance policy. This must be clearly stated in the purchase contract, and it is a legal obligation to include the details of the financial institution, the guaranteed amount, and the beneficiary's name. The developer cannot legally receive funds without this protection in place. It is essential that the independent conveyancing lawyer checks on the Work License.


What protections are now in place in phased developments to ensure ALL utilities are provided in advance of occupation for any relevant phase, and therefore are not reliant upon interim developer supply?

The granting of the First Occupation Licence (Licencia de Primera Ocupación) for each phase is now contingent upon the availability of utilities—water, electricity, and sewage—connected to the municipal network. This requirement aims to prevent provisional connections, and no legal occupation or handover can occur until these permanent services are operational.

What protections are now in place to ensure communities are protected from unfair practices such as imposition of unelected presidents who fail to represent owners best interests? For instance is there mandatory requirement to ensure all owners details are held within a secure database so as to act as effective means of communication with regard to ALL matters affecting the community, including timely notices re voting, etc.

The Horizontal Property Law mandates that owners must elect their president and representatives through democratic votes at a properly convened general meeting. Additionally, the administrator of the community is obliged to maintain an updated registry of all owners with contact details, ensuring proper and timely notifications for meetings, budgets, and votes. Any owner can challenge irregular appointments or lack of transparency in court.

With regard to delays…how are owners now protected from spurious developer claims for force majeure such aspects as strikes, inclement weather, lack of building supplies etc? Are developers now expected to build into their contract end dates allowance for such contingencies, so as to minimise the prevalence of disputes?

Developers are now required to include estimated completion dates with a tolerance margin and must explicitly define what constitutes force majeure in the contract. Courts have become increasingly strict in rejecting vague or unjustified claims for delays. The burden of proof lies with the developer, and buyers have the right to terminate the contract and recover deposits (plus interest) if delays exceed the agreed period without valid justification.

What legal provision is now in place to ensure that no one can occupy their property unless final licence of occupation has been formally provided?

Spanish law clearly states that occupation of a newly built property without a First Occupation Licence is not legally permitted. Notaries are instructed not to authorize final title deeds unless the licence is presented, and utilities companies may refuse to activate permanent supply in its absence. Buyers should never accept handover or sign the deed without this licence.

What protections and limits are now in place to ensure effective TIMELY legal jurisdiction can be accommodated in localities where court delays are excessive?

While court delays remain an issue in certain regions, procedural reforms and increased digitalisation (via LexNET and online filing) have improved efficiency. In urgent cases—such as breach of contract—interim protective measures (medidas cautelares) can be requested to preserve buyers' rights while the case proceeds. Arbitration clauses are also increasingly included as an alternative to court litigation, offering swifter resolution.

What protections are in place to cater for developer/Bank appeals that overburden the legal system?

New procedural rules limit unnecessary appeals by requiring a clearer demonstration of legal interest or error. Courts are also issuing penalties for abusive litigation practices. Furthermore, some regional High Courts are streamlining appeal reviews to reduce backlog and prioritize consumer protection cases. Still, much remains to be done to ensure timely enforcement.