Hi Helen,
My advice would be to sign nothing at the moment.....I have two clients who are in the same position as you, and I have recommended both not to sign.
I have all the documents from Aifos relating to the claim of "Administrative Silence".... they are in Spanish, but if anyone would like a copy please PM me.
Aifos say that according to planning regulations they are allowed to transfer the required square meterage ( to correct the overbuild) of urbanisable land from another plot, and should therefore should be granted the LO......the Town Halls position is that although the movement of urbanisable square meterage is in theory allowed, permission must be obtained beforehand.....not after you have been caught.
I can't see a quick solution to this one...it could drag on for months...sorry
JNR