September 12, 2007 at 9:31 pm #53144
who else is in the same situation ?
we came to murcia to buy a property and had initially intended to buy a resale, but we liked a small development we viewed so much we decided to buy off plan here and wait a year until it was completed. this was feb 06. we paid our 40% by april 06 and our property was to be completed by feb 07. fine so far…
right from the outset we had been on at our solicitor to make sure all the paperwork was in order as like many we had heard some horror stories about buying in spain. we were assured verbally and by email from him, that all paperwork was in place and the builder had a very good reputation locally and we shouldn’t worry about anything. still fine so far…
around oct/nov last year whilst reading posts on eyeonspain someone dropped a bomb shell by asked the question, ” whats this habitation licence all about ? ” well like many people we had not come across this before so we immediately asked our solicitor who explained, it was issued by the council and it might take a few months to get granted. we were really angry about this since he had failed to discuss this at anytime up until we broached the subject with him. since that point he has told us that in our region it can take a long long time to be granted and there’s nothing anyone can do to speed it up. brilliant !
if he had mentioned this back at the beginning we would have walked away from this site and bought elsewhere. he would still have had our business on another property so we can’t understand why he said nothing ? he’s surely there to guide us and to answer the questions that we don’t know to ask. anyway we sat tight hoping it wouldn’t take long. our house was ready by jan 07 but our mortgage lender won’t lend without this licence. the weeks became months and still no sign of it being granted. we have been told it may not be granted until sometime after the whole development is completed at the end of 08. but how long after this point could it take ? no one knows ?
the wife and i made a decision in july that we weren’t prepared to wait so we approached our solicitor to have our bank guarantee cashed in and get our money back from the builder. our plan is to go back over in oct and look for a resale which is what we had originally planned. i wish we had! what ever we buy we’ll make sure this time that ALL the paperworks correct. unfortunately the builder is reluctant to allow us to cancel as they believe they have fulfilled their part of the contract. our solicitor whom we blame entirely for this situation has said they are in a strong position. even more brilliant !
so this is where we are right now. here is a couple of questions for anyone with a bit of knowledge in this area. is the builder entitled to force us to wait until this licence is granted, even if that is a couple of years away, for example, when the builder offered the property to us for completion in january 07 they hadn’t even applied for the habitation licence at this point. it took them until april 07 before they did this. can they do this? can they offer it as ready before applying for this ? if we did complete, there are no facilities on site yet. they haven’t started the pool, tennis courts, gardens etc.. which was in our contract and on their brochures. how can we complete if the builder hasn’t completed what on the contract ? plus can we put any pressure in anyway on our solicitor about his conduct here ? we even have emails from him telling us that all the paperwork is in place for our property. it clearly isn’t.
some people on our site don’t see the lack of this licence as a problem and have gone ahead and completed. that’s there decision. we have no problem with that, but surely we should have had the right to decide for ourselves if this was something we didn’t want to get invovled in . we believe we were kept in the dark at the beginning of the buying process by the builder, agent and our solicitor and suspect this was no accident ? can anyone suggest a way forward for us, or are we just to sit back and fume, for as long as it takes. we know from many other posts on this forum that we are not alone in our frustrations over this issue. in saying all of the above, if this licence is granted suddenly we would be happy to complete as we still like the our house and the development, but i doubt it will.
September 13, 2007 at 9:11 am #74987
Buying on a development in England every property would be a separate entity.
Buying on a development in Spain FLO’s and title deeds are not issued until whole development , and infrastructure, is totally completed.
BIG problem is that until this happens you have bought something you cannot sell, are on builders utility supplies, with proposed facilities that might not happen.
This is where the majority of us come unstuck because we assume Spain and England have the same practices on completion of individual properties and because we don’t think to ask we are not told. Now you are asking they won’t explain the reasons.
However the majority who buy off plan appear to accept this as an okay risk 🙄 .
Seems the paperwork that your lawyer says is in order is just the planning permission.
However to be on the safe side the legality of the latter I would personally get checked out asap.
Where in the region of Murcia is this development?
If in my area I will try and find out about it.
September 13, 2007 at 9:36 am #74989
Are you on builders supply?
September 13, 2007 at 10:10 am #74995
I have read on another forum that since June it is supposed to be impossible to register a property without a habitation licence. Can anyone confirm this?
In this case, it would be impossible for anyone to complete on these off plan developments and obtain an escritura.
Certainly some mortgage lenders are tightening up their rules and won’t lend without a habitation licence. Therefore people who are using a mortgage won’t be able to complete.
Can anyone point me in the direction of this new legislation.
September 13, 2007 at 10:05 pm #75007
Thanks to all that replied to my post.
aradrad- We have heard that the law is changing too. Look forward to reading any return posts about this.
Paul- Our developer has managed to avoid the peril of trailing cables by providing mains electric and water for the site. People who have completed have paid them a connection fee but are technically getting free water and electric as, until the licence is granted, they cannot legally contract with the utilities suppliers directly. Not sure if the developer is keeping a meter count for each property and intends to bill them at a later date for individual usage but if they are they are keeping very quiet about it!
Melosine- Our lawyer tells us that all the planning documents etc., are in order but we have not actually had a sighting of them. We are trying to assertain the exact date that the planning permission was granted by the authorities to allow our builder to develop the site. We have asked our lawyer but have had no reply yet. Have you any ideas how we could obtain this information . The development is near Los Alcazares and the local administation headquarters are in Torre Pacheco. I have P.M’d you with the developments name and the builders details rather than post them here.
Thanks to all again
September 18, 2007 at 8:02 am #75107
Spanish law is baffling!!!
1/How can you buy a property without a FLO,its effectively uninhabitable and therefore worthless.
2/Never heard before that title deeds cant be issued until the whole dev is completed.Sure it makes sense as you want to live somewhere that is completed with facilities etc.
But to my knowledge,once your apt is complete with FLO its over to you.
wether the developer completes the development seems to be in the hands of the gods.
The facilities(infrastructure) are never included in the buyers contract so all you are buying is an apt.
Can a FLO be issued without electricity supply from the grid?
The developer isn’t going to wait 5 years for all the phases to be completed before putting in for the paperwork.
September 18, 2007 at 11:00 am #75108
Never received a pm from you.
Los Alcazares is about 70/80 miles from my area but can still try and find out if you want.
smeg ,suggest you check out Mazarron area where some people on a development are still waiting over 4 years on for their properties to be made legal whilst developer and mayor argue over what infrastucture has still to be done.
The facilities are part of the contract and included in price of the property. No freebies unfortunately.
When buying property in Spain think the total opposite to what happens in England and you will be closer to the truth.
Even we ,with a legal individual build on a legal building plot we already owned , were held up for over a year by our builder who refused to sign the architects book of works. Seems the law was on his side 😡
We were lucky though in the respect we had our own utility supplies paid for by DD but bills in name of builder.
So like many others we moved into a property we had paid for but didn’t own.
September 19, 2007 at 4:45 pm #75124
Can a FLO be issued without electricity supply from the grid? .
It’s the other way round. You cannot get an electricity supply in your name until the LFO is issued.
That’s why so many people stay on the builders supply until all the paperwork is complete.
September 19, 2007 at 6:01 pm #75126
Actually now true but only a few years ago sevillana and local water companies were connecting with no lfos in place so people moved in and the deed was done!
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