If you are thinking of purchasing a property in Spain, there are a series of legal checks that are essential to carry out. That the property is properly registered in the Land Registry. That there are no encumbrances or planning violations. The property’s status in the Cadastre, etc. However, there is an element that is especially relevant nowadays and that is often overlooked. The Certificate of Habitability or Occupancy Licence. In this week’s article we analyse the most important points that you should consider if you are going to purchase a property in the Valencian Region.
Certificate of Habitability. Why is it so important NOW?
The Occupancy Licence or Certificate of Habitability is the document that certifies that a property is fit for habitation from an administrative standpoint. It is therefore an essential document, as it is the basis for legally occupying the property. As well as for setting up new utilities (water, electricity, etc.). Nowadays, it is essential to ensure that a property has this document. In cases where it is unclear whether a property has a certificate or not, it is crucial to act with caution.
Current Regulation. Decree 12/2021. Responsible Declaration.
As of 2021, the Certificate of Habitability has been replaced by a “Responsible Declaration” With this document, owners declare under their responsibility that the property meets the conditions of habitability. It is submitted to the Town Hall together with an architect’s certificate, utility bills, etc. The Town Hall presumes that the declaration is valid from the moment it is submitted, but it can review it and revoke it at any time if irregularities are detected.
It is mandatory to submit the Responsible Declaration in the following cases:
.- First occupation of new properties or after works that substantially modify habitability conditions.
.- Second or subsequent transfers of ownership.
.- Connection of new basic utilities.
Common Issues with the Responsible Declaration of Occupancy.
In practice, several complications arise that should be considered.
.- It is common to assume that a property has a first occupancy licence when in reality it does not. If this occurs (i.e., if a Responsible Declaration for second occupancy is submitted when no first occupancy exists) the Town Hall may require additional documentation, request different fees, etc.
.- When the property is over 50 years old, it may require that it has passed a Building Evaluation Report. If the property is part of a homeowners’ association, the completion of this report must be collectively approved.
.- If the property is not connected to the sewer system (or does not have a septic tank adapted to current regulations) the declaration may be rejected.
.- The absence of an occupancy licence may also limit obtaining major construction permits, new utility connections, etc.
.- Additionally, as explained, the Town Hall may review the submission, or may not. This generates considerable uncertainty.
Conclusion.
At White Baos Lawyers, we are experts in real estate law and in property conveyancing in Spain. If you are thinking of purchasing a property in Spain, do not hesitate to contact us, and we will review your case.
The information provided in this article is not intended to be legal advice but merely conveys information relating to legal issues.
Carlos Baos (Lawyer)
White & Baos.
Tel: +34 966 426 185
E-mail: info@white-baos.com
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