Buying Property in Spain
A comprehensive practical guide to buying a property in Spain
6. The purchase of a plot of land
Many buyers these days consider buying a plot of land in order to design and build their own property. There are many reasons for buyers to choose this route.They have found the most beautiful location for their dream home, or want to live far from busy places or just want to get better value for money as building your own house may cost you less than buying an existing property. Whatever the reason,here are a few topics to consider before you commit to buy a plot.
6.1 Planning permission
Before you actually commit to purchase the plot,find out what is the building law applicable to this particular plot.In Spain,the law varies from one region to another and sometimes the municipal authorities set out their own local regulations.New laws have been enacted in different regions of Spain to restrict building construction in certain areas. There are also stricter controls than before and big fines can be imposed by the authorities if they find a breach of the planning law or building regulations consent.
It is therefore crucial to know whether the plot has outline planning permission to build the property that you wish.It is also advisable to discuss the matter in detail with the local planning office to ascertain if there are planning restrictions that can affect the building of your property.An application to the relevant local authority will confirm the applicable law and requirements to build a property.In any case,consult a specialized solicitor prior to buying the plot as he will guide you as to the steps that need to be taken before and after the purchase of the plot.The necessary applications and administrative procedures will need to be followed in order to get the relevant planning and building licence to build the property.
6.2 The legal process
The conveyancing procedure follows the same steps as
that of buying a property.Once you have chosen the plot,
which is suitable to build the house you wish,then a full
investigation of the title should be carried out.This is very
important as there may be conditions in the title that may
restrict the way that you build the house. There may be
issues relating to access to the property,rights of way over
your land or limitation of your rights in
favour of a third party.
A proper measurement of the land surface carried out by professionals will be sufficient in most situations.It may be that the land was measured a long time ago without modern means and sometimes it may appear that the land is hundreds of square meters less than advertised. A survey to know whether the ground conditions are suitable to build a property is also appropriate in most cases.
Once all the precautions have been taken,then a contract to buy and sell the land should be agreed by the parties,setting out all the terms and conditions of the sale. Completion should also take place at the Notary Public Office. After completion,the relevant taxes will be paid to the tax authorities and the Title Deed (Escritura)will be placed at the Land Registry for registration.
6.3 The building process
The ideal situation is that the plot is classified as a building plot and the owner can obtain building permission to build the house.The application needs to be filed at the Town Hall where the plot belongs. Together with the Application, a Building Project Design prepared by a qualified architect needs to be filed.Also the relevant Town Hall fee and taxes need to be paid.Once the application and the project submitted is finally approved by the Town Hall, a building licence will be issued stating details of the building requirements.
6.4 The architect and the builder
It is important that you see a few architects and builders
before you appoint one to proceed with your project.See
previous works and contact some of their clients to find
out whether they are satisfied with their services.Let
them know that you have a tight budget and try to get a
fixed price for the work.
Discuss the matter with your solicitor in order to get
preliminary advice on finance,ownership and taxation.Also
discuss the terms and conditions of the building contract.
It is important to make provisions so as not to pay any
installment stage until the architect inspects the site and
confirms that the work has been carried out satisfactorily.
Fix a date for completion of the building work and make
provision as to compensation for late completion.
Although it is not legally compulsory when you are building
your own property to arrange an insurance policy to
guarantee the soundness of the structure,it is advisable to
deal with this matter for your own peace of mind,also as it
is a guarantee for any future buyer of your house.
Although it is not legally compulsory when you are building
your own property to arrange an insurance policy to
guarantee the soundness of the structure,it is advisable to
deal with this matter for your own peace of mind,also as it
is a guarantee for any future buyer of your house.
6.5 Completion
Once building construction is finished,the owner will have to provide details of the new construction by way of a deed "escritura de obra nueva "to be signed in front of the Notary Public.The deed will set out that the property has been finished and built according to the building licence and clearly describing the internal division of the property and its measurements as well as stating a value for the construction work.
Taxes will need to be paid to the relevant tax authorities and the deed placed at the Land Registry for registration purposes.As the building construction is finished,the Town Hall architect will have to carry out an inspection to make sure that the construction complies with the building licence and regulations.If they are satisfied,they will issue a licence to certify that the property is habitable.
Also,it is mandatory to register the property before the Town Hall "Catastro "department.They will take details of the property and will make the necessary changes to their file to show that a new property exits on that plot. The Town Hall will then be able to levy the relevant rates for you to pay every year.
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