Building Land

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This topic contains 4 replies, has 4 voices, and was last updated by Profile photo of Anonymous Anonymous 8 years, 7 months ago.

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  • #53893
    Profile photo of Anonymous
    Anonymous
    Participant

    Can anyone help? – is it possible to buy a plot of land subject to planning? If so, once planning is granted, can the vendor pull out of the deal and leave you high and dry….?

  • #81845
    Profile photo of Anonymous
    Anonymous
    Participant

    Can anyone help? – is it possible to buy a plot of land subject to planning? If so, once planning is granted, can the vendor pull out of the deal and leave you high and dry….?

    The answer is the same as in any country. Depends on the contract that was agreed in advance of attaining planning permission. Planning permission, if and when granted, is attached to the land and the proposal for development and is not granted to the person that makes the actual application.

    The ‘subject to planning’ offer is commonplace in the property market, though most of these deals are agreed with solicitors in advance of determination of an application – hence no confusion once planning is granted.

    If you’ve not got a formal contract, agreed in advance, with the vendor and ratified by a soliictor, i say you’re in trouble. If the deal was undertaken purely on a trust basis / handshake / verbal agreeement or simmilar (unless you are in Scotland where a verbal agrreement can be upheld as law – though this is understandably difficult to prove) then you are in trouble of losing out assuming that you paid for the costs of planning etc.

  • #81847
    Profile photo of Anonymous
    Anonymous
    Participant

    Magnaman, the answer is yes.

    You would place a 10% deposit with the lawyer on production of a Contracto de Compra Venta.

    A clause in the contract would state that on planning consent, you will purchase fully and sign the title deed at the notary. If the vendor backs out he is obliged to pay back double your deposit. If you back out you lose the deposit.

    It´s a similar case to purchasing a property subject to mortgage approval.

    Should the mortgage not be granted you will be able to have your 10% deposit returned to you.

    You will of course be advised to seek advice from your lawyer who will require a copy of the title deed to check out at the town hall that a cedula urbanistica exists for the land to be built on. If it doesn´t exist, then the land will be classed as agricultural. It would take an application to the provincial government and not the local town hall to re classify the land. That could take as long as 2 years and the odds are it will be a NO.

    Before you employ an architect and incurr costs, I advise you to ask your lawyer to do the above.

  • #81848
    Profile photo of katy
    katy
    Spectator

    Just ensure that it is your Lawyer who holds the 10%. Safest/quickest way is to buy a plot with a project.

  • #81849
    Profile photo of Anonymous
    Anonymous
    Participant

    @katy wrote:

    Just ensure that it is your Lawyer who holds the 10%. Safest/quickest way is to buy a plot with a project.

    Yes and also a lawyer of your choosing and not the agent or vendors.

    Also check out the electricity and water supply, it can cost tens of thousands of €€€€€´s to get these if they are not within a few hundred metres. Electricity can take over a year to get to your plot, and that´s assuming the neighbouring land-owners give consent to go across their property.

    As katy points out, it can sometimes work out cheaper to buy land with planning permission. I.E. Cedula Urbanistica. You can then submit plans to your local town hall that are virtually guaranteed to be approved, provided the plans fit in with local planning regulations and restrictions.

    A rough guide to land price is €5.00 per m2 for agricultual and maybe €8.00 per m2 if with the Cedula – that is in my region of Murcia and obviously not coastal.

    Edited to add a missing word.

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