Can you sell if LFO is in place?

Hi

There seem to be a few properties on my development up for sale, but we haven't got the LFO yet, so I didn't think this was possible. Can anyone shed some light on this for me?

Many thanks

Karen

Depends on the reason there is no LFO. If its because the developer is awaiting it by administrative silence BUT the deelopment is illegal with the illegal granting of the building licenses by the corrupt, then no you cant sell it.

If there is no LFO due to a minor issue the builder is dealing with either by rectifying (ie slopes into the pools for wheelchair access, or landscaping which he is in process of and whtich will result in the issue of the license once the works are complete) or by arguing (ie new point the town hall have suddenly decided to ask him to do which is ot on the old approved plans) then as it is in process as it were, then the likliehopod is the property is saleable.

If the said 'illegal' development is on one of the complexes mentioned in the new plan for marbella and can be legalized providing the developer compensates the town hall, then possibly as some banks and notaries may allow it, but some may not and you need legal advice before proceeding at all.

However, if you are a cash buyer, you can still purchase and many spanish will do so as they understand their countries customs. The non-spanish will probably be advised to avoid it.

So it really depends and is a complex subject. If you want to sell, ask a lawyer what the facts of your development are and ask his opinion.

Thanks Rixxy

We are awaiting our LFO - this is due to landscaping and the like - the development is totally legal. I am more than happy with my property but thought you couldn't resell until the LFO was insitu.

Many thanks

Karen

It depends on how much risk the buyer wants to take. As far as I  know many Notaries have no problem with authorising purchase deeds without FOL in place.

Need to remark that it is risky for the buyer and that the lack of FOL will not allow the registration  of the ownership in the Land Registry. In our Spanish Property Legal System the Land Registry is the ultimate and most truthful source of property legality.

Then Im confused - I bought a house last year, mortgaged but there is no LFO and we have been advised our developer has to compensate the town hall for this.

But I have the escritura and also the nota simples in my name - thereby it must be registered to get these???

Right!.......this could be really helpful to our Community.

If an apartment is sold without the Habitation cert................that is ok, BUT according to Maria, the property CANNOT be registered in the Land Registry without it ( ? )  SO...........would that apartment then be still registered as belonging to the first owner...........and where does that leave the 2nd owner regarding debts ???????????Any ideas?????????

Hi again

I bought my house back in April, the LFO not in place at the moment - we are the first phase. I do have deeds for my house though, and the legal stuff was all completed. I'm also confused as I thought you couldn't resell without LFO. I personally don't want to sell, it's a grim day in Derbyshire and I would prefer to be in the sunny MarMenor!

Thanks for all the replies

Karen

Sorry Pitby, just been informed that you were answering Karen c.........................not me!!! ( silly me )

But I would really like an answer to my enquiry please if anyone knows!!

Hi Karen C

Welcome to the forum,

Rather be in the sunny Mar Menor, you and me both .

Just had a thought, don't know, has your development been built at different stages, in other words, are there different phases within it, as ours is a small complex but there were two phases and phase two was completed after ours and they were then behind us with the habitation licences etc. Other than that not sure.

Hi Karensun,

If the property was sold on all debts(if any) should have been cleared by the 3% retained at notary at the time of signing by thye purchaser.

I think that's what you were asking?

Just on a different note,if anyone is buying in the Alicante region and are using their property for theiir prime residence please make sure you declare this at notary as you will receive a discount at notary on the stamp duty,the percentage will reduce from 1% to 00.001%.

If you do not let them know it can be hard work to get this back after the fact although it can be done.

Regards

Georgia

karen c

our lawyer (lawbird) strongly advised us not to complete without the LFO in place. Unless you can be 100% certain why the LFO is not in place and are 100% sure it will be issued, i think you are on dodgy ground if the sh*t hits the fan for whatever reason. This seems to be yet another hopeless grey area that Spanish law specialises in!!

Just to let you know that it is NOT my property I am refering too......but another in the Community.

Yes, Maria, we have all the right bits of paper for our own property!!

Georgia,  the guy who sold the property ( and accrued the debts ) got the buyer to use his solicitor who was a friend  ( Spanish,, tho the seller was not. Thhe solicitor was told there were no debts on the property ( htere was no certificate issued and she took him at his word ) and the solicitor DID NOT retain anything. ( she told me that herself!!)

Now the buyer is not at all chuffed..................and has the property up for sale privately and he has NO habitation cert, cos it's in a file in the spare bedroom, unclaimed.

The case has been going through the Spanish courts now for 2 years and we are talking 4ooo€ perhaps moe with court and solicitors costs. But it is looking increasingly unlikely that the Community will get it's money and will be responsible for the costs. HELP.