The Spanish Central Government has initiated plans headed by Minister for Public Works and Housing José Blanco to aid the fragile economy and inject some credibility and assurance into the Spanish property market, by offering ex pats greater access to official information and legislation.
The new legislation has been introduced to prevent expat purchasers falling foul of crooked developers and planning laws and calls for important information concerning the legality of the property to be lodged with the Land Registry.
Potential purchasers can now request a certificate in English at 29€ (plus IVA) that helps protect prospective purchasers by insuring all necessary information is accessible; thus preventing future ‘Homes from Hell’.
The certificate, known as the ‘Nota Simple’, will explain crucial relevant information such as whether there have been or are currently any legal proceedings against the property that could result in huge fines or enforced demolition.
More importantly, it is now the responsibility of the Town Hall to keep the Land Registry supplied with updated information to avoid being held liable for any resulting loss to third parties that buy in good faith.
No More Sidestepping by Town Halls
I have heard many builders and developers say that they have applied for planning permission but as the town hall has not responded it is deemed acceptable to go ahead and build as planning permission will be granted eventually. Hallelujah! – This new law also hopes to eradicate the underhanded practice of developers of making money by the town hall’s silence regarding planning permissions. This law states: “It is impossible to acquire rights which contradict land and town planning laws.” And in future all projects will need administrative authorisation: the lack of response will from now be considered as a negative decision.”
The law also goes some way to increase the protection of purchasers who buy off-plan. The Central Government deems that to register a new property with the Land Registry, developers must obtain a ‘Licence Of First Occupation’, a ‘Construction Licence’ and a ‘Technical Certificate’ and have confirmation that all corresponds to the plans submitted – and granted – in the first instance.
Welcome Initiatives
British Ambassador to Spain, Giles Paxman, was quoted: “I welcome these initiatives that will communicate essential information in English combined with the measures announced in the new legislation. This should ensure buyers are accurately informed of any legal issues connected with a property.”
But what of existing home owners that may have legal issues I hear you say…? This new legislation will not assist home owners that bought here in the past and that have legal issues connected with their purchase. However, the new legislation does give some hope to the owners of illegally build properties that they purchased in good faith – does this mean the Land Registry will recognise the existence of such homes?
Sandcastles, like everyone else, waits with interest to find out…