IN this article we will continue to explain some of the most common mistakes made by buyers and sellers of real estate properties in Spain.
Sometimes buyers believe (or are misinformed by other parties involved in the sale), that the fact that a property is registered in the corresponding land registry, means that it is a legal property and may legally be bought (or sold), but this is an absolutely wrong assumption.
Planning and Urban Legality The registration of a property in the land registry does not imply that it complies with the urban planning and legal obligations covering municipal planning etc.
Thus, it is perfectly possible that a property that does not comply with municipal regulations is correctly registered, but for example its build surface is greater than the allowed one, that the distance to the boundaries has not been respected on the construction, that it is affected by a construction of roads and part of the land must be surrendered, or even that there is a demolition order, a sanction procedure, etc. and none of this is reflected in the property registry.
Therefore, it is essential that buyer and seller make all the necessary checks to ensure that the property they are buying or selling complies with and respects the urban legality, which goes beyond the verification of the land property registration.
Occupation Licence As we have pointed out in numerous articles, the current occupation licence of a property is the document that proves that the property can be used as a dwelling, that it can be occupied and that the supplies of water, electricity and other utilities may be contracted.
The existence or not of this occupation license in the second-hand property transfers is not reflected in the land registry and it is not required by the notaries at the time of granting the deed of purchase.
Therefore, if when buying you are only reviewing and checking the land registry registration, you could purchase a perfectly registered property but without the occupation license and therefore you cannot legally occupy it, or use it as a home, with all of the negative implications that would exist.
So, if you are going to buy or sell a property, real estate or house in Spain, you must understand that the correct inscription at the land registry is a fundamental verification, but it is not the only one that you (or your lawyer) must undertake, to make sure that you buy or sell correctly without taking unnecessary risks. If you are in this situation and are going to buy or sell a property in Spain, contact us and we will help you.
The information provided in this article is not intended to be legal advice, but merely conveys general information related to legal issues.
Carlos Baos (Lawyer)
White & Baos
Tel: +34 966 426 185
White & Baos 2018- All Rights Reserved.