Post refreshed: Buying in Spain is safe!

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11 Feb 2014 3:42 PM by mariadecastro Star rating in Algeciras (Cadiz). 9419 posts Send private message

mariadecastro´s avatar

http://www.eyeonspain.com/blogs/costaluz/5535/legal-tip-525-yes-spanish-property-is-safe-to-buy-nowiii.aspx

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



_______________________

Maria L. de Castro, JD, MA

Lawyer

Director www.costaluzlawyers.es

El blog de Maria



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11 Feb 2014 3:55 PM by acer Star rating. 1538 posts Send private message

Hi Maria,

I am grateful for the postings you make on EOS, but on this issue my experience is that in practice the notary does not always follow the legislation.  Sales are regularly completed where a Habitation Certificate/First Occupation Licence is still to be issued.



_______________________
Don't argue with an idiot, he will drag you down to his level and beat you with experience.



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11 Feb 2014 4:29 PM by mariadecastro Star rating in Algeciras (Cadiz). 9419 posts Send private message

mariadecastro´s avatar

I agree Acer than till 2013, relying on Notaries was not a big choice. Now Land Act is stricter on this.

Anyhow, of course, the company of a good, reputable lawyer is unvaluable.

This is a recent post on this:

EL BLOG DE MARIA

YOUR DAILY SPANISH LAW REPORTER. HAVE IT WITH A CAFE CON LECHE. WWW.COSTALUZLAWYERS.ES

 

Legal tip 1075. Registrars, Notaries and Planning regulations
02 December 2013 @ 11:40
 

Notaries and Registrars have historically been guarantoors of the private side of legalities related to property ownership: Owner, title, loans and encumbrances, means of payments, correct registration of ownership to give public faith of these private transactions before third parties.

Even in  Land Act of 2007 it was not clear that  Notary and Registrar must require First Occupation License to authorize / register deeds of end of works.

Notaries wrote an online guide by that time where they wondered about this requisite of the article on End of Works deeds:

b ) the documentary evidence of compliance with all requirements imposed by the legislation regulating the building to deliver it to their users

What document does this refer to? They guessed then:

Ten-years obligatory building insurance? Habitation License? Book of the building?
          
It was in 2011 , when Land Act started too mention specific obligations of Notaries and Registrars in regards to checking on Urban legalities. Then in 2013,  these obligations were made much more precise and clear:   

Notaries :

New building deed:
- WORK LICENSE + TECHNICAL CERTIFICATION OF PROJECT BEING SET TO LICENSE

End of Works deed: 
- TECHNICAL CERTIFICATE OF END OF WORKS + TEN YEARS INSURANCE + BOOK OF THE BUILDING + ENERGY EFFICIENCY CERTIFICATE + FIRST OCCUPATION LICENSE
 

Registrars:

They need to verify all requirements above before registering the end of works deed.

When registering finished works they need to verify very strictly on existence of any urban irregularity.

So, in short words, it is not till June 2013 that the Land Registry offers a high level of safety in regards of the planning/zonning status of houses. For all houses built and registered before then, a good independent lawyers is necessary for verifying those aspects.

Demolitions? Possibly not as many as the press mentions and always a claim being possible against Local Councils is they issued licenses against Regional Urban Rules.

Legal adviceSierra of Grazalema, Cádiz, South of Spain, at facebook.com



_______________________

Maria L. de Castro, JD, MA

Lawyer

Director www.costaluzlawyers.es

El blog de Maria



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11 Feb 2014 6:02 PM by Jamesinmadrid Star rating. 1 posts Send private message

Unfortunately, buying in Spain is definitely not safe for foreigners. I have lived here for 10 years. Have bought a house which has been a nightmare from start to finish. Everyone involved, from banks to solicitors, have proved either inept or actually fraudulent and corrupt. Would I advise a friend to buy property in Spain from a Spanish company? Not in a million years. Also, when things go wrong, you have no safety net like in the UK. The legal system here is very slow, short on justice and even some lawyers have told me that its a regular occurence where judges are bribed by big business developers.





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