New Law in Andalucía

[AnonymousParticipant]

Two days ago it came into effect a rather important law passed by the Andalusian Parlament which aims to protect the rights of property buyers especially the off plan ones. Obviously this law (Rd 218/2005) applies only in the Andalusian territory , it tightens controls on developers and agents selling on their behalf and it applies a scale of fines already approved by the Andalusian Law 13/2003.

I will try to resume the law and translate it from the leal technical spanish ( uff ), so excuse my english.

Basicly the law obligues the developers and agents to give to any person enquiring about a new develpment a document call D.I.A. or Documento Informativo Abreviado, this must be given for free and it must contain the following information:

1) Name and ful details of the development company and the real estate agent if there was one.

2) Name and full details of architect, “director de obra” (building manager) and building company.

3) A plan of the location of the property, plan of the apartment/house and accesories, minimum scale1:100.

4) Surface of the property

5) Description of the property, pls water, elec., sewage, gas , telecomunication and fire protection infraestructures.

6) General description of the building and urbanización , plus common areas

7) Quality of the materials used in the building

8) Total price of the property and accesories, plus taxes on the buyer, other expenses and the way to pay them.

9) When payments in advance (prior to the completion of the building) are required from the buyer ( instalments ) it will be mentioned that those amounts will be granted by an aval bancario, name of the bank, address, and the account number where those amounts will be deposited.

10) Title on which the developer is able to build on or use the land , plus all charges and encumbrances on the land.

11) Mention the availability of the building license or alternatively the land complies with that town all urban planning regulations in order to build on it.

12) in which estage is the construction of the building.

13) Date of completion of the property plus common areas, at least the year AND the quarter of the year must be stated.

14) Charges and encumbrances on the property

15) Mention the way the contract will be signed (which formality) and especially:
A) the buyer will not pay for duties which by law are for the developer ( for example the cancellation of the developer’s mortgage ).
B) The buyer’s right to choose the notary, (the developer cannot impose the notary where the deeds will be signed)
C) The possibility of any of the parties to call the other for the signing of title deeds.
D) the buyers right to get a copy, in advance, of the private contract to be signed.

Well, this new law helps a bit. I would say though that it does make clear (it should have ) whether the Bank Guarantee should be there when you sign the private contract, but at least it says that it must be given full information about the bank which finances the development and the especial bank account where the instalments must be paid into, this is enough base to start an enquire in that bank or insurance company with regards to the solvency and formality of the developer. Aswell , as I always advise, when the contract is signed, if the bank guarantee is not ready the developer/agent must give a copy of the “contrato de aval” or contract between developer and bank based on which the individual bank guarantees will be issued, plus the contract MUST say when the bank guarantee will be given or otherwise the deposit will be returned to the purchaser.

I hope this post helps some people who still haven’t signed their contracts for a property in Andalucía. Anyway I always recommend to use a good lawyer in the area before paying or signing documents with developers / agents.

Regards,

Jose María Sánchez Alfonso
Lawyer / Abogado
Málaga / Costa del Sol
Tel 95.2479268
jmslawyer@telefonica.net

[AnonymousParticipant]

HALLELUHAH!! 😀

This is just what we have all been begging to happen. I guess it will not help many of us but it goes a loooong way to ensuring that future buyers will not be able to get into the situation many of us are in.

I wonder how that will affect developers like ours, who have lied and deceived us. I hope they get there comeuppance.

Muchas Gracias, Jose.

Regards,

Claire.

[AnonymousParticipant]

This sounds like great news does it only apply to future buyers or can people like us who have bought on the Almanzora country club, which has to resubmit its plans, benefit from this law.

regards Maureen

[AnonymousParticipant]

YES I WOULD LIKE TO NOW IF IT WILL COVER ME I HAVE PAYED RESAVATION FEE BUT SIGNED NOTHING AS YET WILL IT COVER ME, THANKYOU

[AnonymousParticipant]

o/

[AnonymousParticipant]

Is that what is known as sarcasm… not everyone knows the rules when they start on this adventure.. we all have to learn.

Maureen

[AnonymousParticipant]

I suspect the law will make very little difference and developers will still carry on scamming. 🙁

[AnonymousParticipant]

The main flaw I can spot is that the developer/agent only has to make this information available to those who ask for it. It would perhaps have been better if it was required to be attached to all contracts or promotional material. Still, props to the Junta de Andalucia for a step in the right direction.

[AnonymousParticipant]

The problem is that the law is only effective if the people it applies to adhere to these laws. Will it be the same way that most Spanish law seems to be treated…totally ignored when it suits.

[AnonymousParticipant]

Hopefully it will be enforced with all the zeal of the tobacco laws. 😥

[AnonymousParticipant]

Exactly my point!!!! 🙁

[Author]

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