SOME of our clients, both investors and individuals, want to live in Spain and build the house of their dreams, so, instead of purchasing an existing property they prefer to buy a plot and then build a house to their specification.
This option involves a series of legal responsibilities that, in most cases, are not always explained to the buyers and they need to be alert to unnecessary risks.
The first thing that the client must understand, it is that legally in such a situation, they will have the status of promoter even if he/she has no knowledge of the construction process and leaves it in the hands of his architects, lawyers, consultants, builders, etc.
Legally as owner of the plot they will be considered as the promoter or developer of the project, and will be deemed responsible in front of third parties, like Town Hall, etc., in case of breach of planning consent, construction problems or other unforeseen difficulties
For this reason, it is essential in these cases, that the client is advised correctly, especially in relation to the contracts to be signed, and the obligations and responsibilities to be assumed by the different agents that will be part of the construction process, especially the technical architect, main architect, builder, etc.
It is highly advisable that the client agrees with the architects that in addition to the design and execution of the project, they must take charge of the delivery of all necessary documents for the registration of the construction at the land registry and cadastre, once it is finished and in addition, they should obtain the first occupation license and any other legal documents required.
In relation to the builders: it is essential that the client establishes on a contractual basis exactly what the builders obligations are and to receive written confirmation that the builder and architects do not have a relationship of dependence or regular collaboration, to ensure their independence and that they will defend the interests of the client in case of disputes regarding the execution of the work, materials, etc.
In some cases it could be worthwhile considering the hire of the services of an external architect who will monitor or control the work of the project’s architects, builder, etc.
There is no question, from the legal point of view, that the preparation of the execution of works or building contracts with builders, as well as contracts with professionals such as architects in a manner that protect the interests of the buyer of a plot on which they want to build (developer), is quite complex.
Therefore, if you wish to buy a plot in Spain, for the purpose of building, you should understand that it is essential to obtain the necessary legal advice to ensure the protection of your interests, obtaining the necessary documentation for the completion of the process satisfactory, etc. If you are in this situation, 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
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