Pueblo Canario Corralejo

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11 Dec 2007 12:00 AM by sm-2611 Star rating in Kingsbury near Tamwo.... 3 posts Send private message

Hi

I'm Sue we recently paid a reservation deposit for a house on Pueblo Canario in Corralejo,  the Solicitors wanted us to go for completion but we were waiting for a valuation from the Bank who we have our mortgage set up with.  The one thing we did not have was the Habitation Licence but were told it was alright to complete without it because it would be put into our title deeds that we could have builders supply of water and electricity free.  We have received an email from our solicitor this morning saying that we still do not have the Habitation Licence and that we need to complete quickly as now there is a possibility of the Developer going bankrupt.

Any ideas or similar experiences

 

Sue





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11 Dec 2007 8:30 PM by mariadecastro Star rating in Algeciras (Cadiz). 9419 posts Send private message

mariadecastro´s avatar
It seems the new Notary regulations do not allow purchase deeds to be signed without the FOL.

_______________________

Maria L. de Castro, JD, MA

Lawyer

Director www.costaluzlawyers.es

El blog de Maria



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11 Dec 2007 8:41 PM by sm-2611 Star rating in Kingsbury near Tamwo.... 3 posts Send private message

Hi

 

Can you please explain exactly what  FOL stands for, and are we being misled by our Solicitor in Corralejo ?





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11 Dec 2007 9:11 PM by mariadecastro Star rating in Algeciras (Cadiz). 9419 posts Send private message

mariadecastro´s avatar
  There is an article on that in this website, called " License of First Occupation and completion". The configuration of my Google does not allow me to past the link so, here you have the text. Enjoy! ( I have highlighted the definition you asked for)

The fact of having the purchase deeds signed  before a Notary in Spain means that your house “has been born” to the “legal world”. It is necessary a previous or simultaneous title which is the  “New work declaration deed” over the land. The Notary deed will allow you  to transmit the house. That is in the civil  and registry level.

The developer must also fulfill some requirements before the Public Administration ( i.e.- before the Local Council: planning obligations, reparation duties…) therefore, the Local Council won´t proceed to the granting of the First Occupation License (Licencia de Primera Ocupación) till these requirements are met.

The lack of FOL can impede the owner to have the power supplies connected : water, electricity, telephone, gas… it can even imply an impediment to have the house as registered domicile in the Local Council “ Padrón” registry.

The proper definition of the FOL is of a  license by which  it is checked that what it has been built  is adjusted to the Project. The FOL verifies if the building can be assigned to its legal use, because it is located in a proper  planning zone and it meets the basic safety and health conditions, it also confirm that  the builder has fulfilled his commitments on urbanisation of the surrounding land.

Regarding FOL and completion, Consumers specialists state:

1.- The seller who signs the public deeds of purchase without FOL ( First Occupation License) is in breach of contract even if the house has been physically handed over, because the ownership rights that he is trasmitting are not valid for the use of the house till the FOL is granted.

 2.- The buyer can be opossed to the signing of the deeds till the FOL is granted if the completion date was fixed for anytime after the end of the work, and the seller cannot cancel the contract due to this negative of the buyer until he fulfills his contractual obligations ( by obtaining the FOL).

 3.- The buyer can cancel the contract ( even after the signing of the deeds), with full devolution of amounts, interests and compensation of damages if after the completion date, either  the deeds having been signed or not, the building does not have the FOL.

4.- If the buyer decides not to cancel the contract, he must not occupy the house, even when having being formally handed over, because that would involve an administative infringement and because he can be deprived of its use by the competent Administration.

Written by 

Maria de Castro
Lawyer

Maria de Castro is a Spanish Lawyer and the Director of the Law Firm www.costaluzlawyers.es.

She specializes in advising private foreigners in Spain and making the Spanish adventure a good dream. You can contact her at mldecastro@costaluzlawyers.es



_______________________

Maria L. de Castro, JD, MA

Lawyer

Director www.costaluzlawyers.es

El blog de Maria



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