Question: I have seen a recent television programme in which they talked about property in Spain being built illegally and am worried about my property. What is the situation in Spain with regard to this and what can I do if it affects me?
Answer: There is actually several issues involved in Spain at the moment – each one of which could be potentially a problem.
The first problem is that of property that is built illegally. By this I mean where the builder or developer starts to build a property knowing that he doesn’t have planning permission. Sometimes this is done in the anticipation that the planning permission will be issued later. Other times the planning permission is never even applied for. In either of these circumstances the property could theoretically be ordered to be pulled down by the authorities. In many cases the planning permission does eventually get granted and everything eventually works out. In other cases the planning permission is refused. The problem with proceeding with the purchase without the planning permission being issued is the risk that the planning permission may never be issued. Obviously if you have paid over a load of money to the developer whilst he is building and now the property cannot be legally built then you are faced with trying to get your money back – which can often be very difficult.
I think that it is important to point out that this problem is not particular to certain parts of Spain or even Spain itself. Neither is this a new problem. This has happened the world over ever since planning permissions were invented and is, in fact, even more prevalent in some countries than it is in Spain. Over the years the percentage of developers who start building without planning permission has reduced. Having said that, it is still absolutely vital that you get an independent lawyer to advise you on your purchase. It is only if they are independent that they will tell you if the planning permission has not been issued. The lawyer who is also acting for the developer will not want to annoy the developer by letting you know that there is a potential problem and will therefore gloss over this fact and make it sound like everything is OK.
The second problem is a much more recent one and one which is much more difficult to identify. Again this problem is likely to happen throughout the world and not just Spain – it just so happens that people are currently getting caught in Spain with this at the moment. This problem is where there is planning permission, but that the issue of the planning permission was illegal itself. What has happened (allegedly!) is that corrupt officials have taken what we would call “incentives” by developers to issue planning permissions where they should not.
Basically the officials are being bribed to issue illegal planning permissions. The planning permission looks perfectly legal – it is issued by the correct authorities, it has the correct stamps on it and says the right things. It is impossible for you and your legal representatives to check that the planning permission was legally issued. There is a clamp down on this in the south of Spain at the moment with many people being investigated for corruption and being held in jail – although this is also happening in other areas. As to what can be done about this – this is the question on everybody’s lips. My personal feeling (and I am sure that many people will disagree) is that some properties will be knocked down as an example. Other properties will be left because to knock them down will affect so many people that the local government will loose a lot of support if they were all knocked down. This matter is now political and the elections in the south are coming up within the next few months. Many people are hoping that elections will bring in a swift solution. Personally I think that we will probably see years of legal battles to come.
The International Law Partnership LLP
Solicitors & International Lawyers
Holborn Hall
193-197 High Holborn
London
WC1V 7BD
Tel: 020 7420 0400
Fax: 020 7836 3626
Email: info@LawOverseas.comInternet: www.LawOverseas.com
|