The First Occupation License is a license which states that what it has been built is adjusted to the work Project who obtained the work License by the Local Planning Authorities.
The FOL verifies if the building can be assigned to its legal use, because it is located in a proper planning zone and if it meets the basic safety and health conditions. It also confirms that the builder has fulfilled his commitments on urbanisation of the surrounding land.
The Ground Act dated the 28th of May 2007 establishes in its provision 19 that the Notary deeds of " Under construction New Work " which are granted at request of developers when starting the building of a work require the existence of Work License. No Notary can sign a New Work deed without such license.
Provision 19 of same Act also establihses that the deed for the end of work will need the verification by the Notary on the existence of the First Occupation License and therefore deeds for the completion of the purchase business and transmission of ownership rights to Consumers cannot be granted without First Occupation License. In short words: no house can be acquired without that license now in Spain. Notaries cannot athorise these transmissions
If you are buying a house who was finished before May 2007, and there is no mention of First Occupation License in the Notary deed it is important that your lawyer verifies that the said License exists before even allowing you to sign the initial deposit.
Part II of this serie here
Part I of this serie here