breakthrough for spanish property market
Know where you stand within three days
Calificasa is the only independent online platform in Spain where buyers and homeowners can apply for a Legality label. Is the property completely or partly legal, time-barred, or illegal,? Are there any risks or are they acceptable? With the Legality label, you get answers to these essential questions with conclusions and recommendations for a reduced rate of €249,-.
Below are five risks that are not legal in nature but do determine the value and marketability of a property. They result from the current rules defined by each Spanish municipality in the so-called zoning plan (Plan de Ordenamiento Territorial). Not everyone knows that the current rules apply to all types of properties regardless of the year of construction. This requires technical research by architects specialising in so-called urbanismo, or spatial planning. You can see an example of a report on the rates page.
The Legality label can only be issued by authorised specialists. They are independent, comply with strict conditions and sign off. This makes the Legality label highly reliable and valuable for buyers, sellers and homeowners alike. The low cost of the Legality label outweighs taking risks, if necessary as a second opinion.
REBUILD
Can the property be rebuilt after damage caused by house fire or natural disaster?
DEMOLITION
Should illegal buildings be demolished to meet the municipality’s requirements?
LICENSES
Does illegal or tolerated construction affect obtaining licences and permits?
INSURANCE
Is there insurance cover in case of major damage if the property is non-compliant?
FINES
Are there any fines possible for building without permission by previous owners?
For Buyers
Once you agree on the price, it is wise to apply for a Legality Label first because you will know where you stand within 3 days.
If everything is in order and any potential issues can be resolved or are deemed acceptable, you can proceed with the next steps right away.
However, if the property presents unwanted risks, you’ll be relieved that you haven’t yet signed a reservation contract that would need to be canceled, avoided unnecessary legal costs, and won’t have to deal with the hassle of retrieving the reservation amount.
For Sellers
Request a Legality label to distinguish your home from homes with problems. Place the label with the property advertisements, then you will sell faster for a better price.
For Homeowners
Know your residential situation. Avoid surprises with permits and insurance coverage, for example, for rebuilding in the event of major damage, and legalize what you can legalize because it may not be possible later.
For everyone to understand
Local rules and real estate law are complicated. That is why it is nice that there is finally an understandable label from ‘A’ legal with minimal risk and higher value to ‘E’ illegal with high risk and lower value. This way it is clear to everyone and we avoid surprises and misunderstandings. Read the tips at the bottom of this page under the heading ‘Did you know this?’
Did you know?
It's not all nice to report, but it's good to know.
- Did you know that the Legality label was created to make the legal-urban situation of a property understandable for everyone to prevent misunderstandings and a bad purchase? All the points below are the reason why the Legality label exists.
- Did you know that the Legality label applies to all types of homes throughout Spain?
- Did you know that it is sensible to first apply for a Legality label because you will have the result within three working days? If everything is in order, the problems can be solved or are acceptable, then you can continue immediately, and the costs you subsequently incur are worth it. But… if the property turns out to have unwanted risks, then you are happy that you have not yet signed a reservation contract that has to be terminated, have not incurred unnecessary legal costs, and do not have to discuss getting the reservation amount back. This often involves thousands of euros up to sometimes even 10% of the purchase price.
- Did you know that many buyers are pressured to sign a reservation contract and make a down payment? Often without buyers receiving essential documents to be able to have research done. It is better not to have bought a house that turned out to be in order than to take on the seller’s problems under pressure (see point 2).
- Did you know that we have a good tip when it comes to the reservation contract? Take the pressure off the seller by indicating that you are going to read the contract. In the meantime, request the Legality label, and within three days, you will know whether you want to sign the contract (see point 2).
- Did you know that you should never sign a contract and pay a reservation fee if you have not received all the essential documents but at least the ‘Nota simple’? (see point 2).
- Did you know that reservation contracts are often relatively simple, so buyers do not expect any problems? Realize that simple contracts can never properly serve the buyer’s interests, can oblige them to purchase, or can lead to the loss of the reservation fee. Reservation and option contracts are often a disguised purchase contract (see point 2).
- Did you know that the responsibility in contracts is often shifted to the buyer? This is done using logical and seemingly innocent clauses in the contract, in which the buyer confirms that he has seen the property and is aware of the situation. Buyers cannot know the situation at all without research, let alone the consequences as a result of illegal construction (see point 2).
- Did you know that if a property is registered in the Land Registry and Property Registry, you cannot conclude that it is legal because that is not the function of these bodies?
- Did you know that buyers are misled with the First and second licence and habitation licence? Even based on these documents, you cannot conclude that a home is legal and has no risks.
- Did you know that a Non-infringement certifícate (certificado no infracción) is often requested because there are irregularities? The document is an administrative act in which the municipality declares that they are not aware of any irregularities and does not declare that they do not exist. A property is rarely visited for this certificate. It is also completely separate from the zoning plan and says nothing about legality.
- Did you know that you do not sell homes by mentioning the risks? Logical because it scares off buyers, but as a buyer, you want to know if there are any unwanted risks. This can only be done by investigating the legality of the construction and the zoning plan.
- Did you know that we have a tip regarding requesting documents from the seller/estate agent? Do not ask for the list of essential documents because that can be an unnecessary deterrent, and you will miss out on the home. The documents are rarely all present. Much more important is whether essential documents can be obtained if they are not present. However, the Nota simple is an absolute requirement for the investigation!
- Did you know that it is not a good start if the seller does not want to send documents to you but only to your lawyer? As a buyer, you are effectively forced to hire a lawyer without having any idea about the status of the property. This may result in unwanted influence on your lawyer by the seller, especially if they know each other. This is not desirable. The buyer invests and, of course, has the right to all available documents.
- Did you know that many homeowners only discover the problems years later? For example, when applying for or renewing permits or paying out damages through insurance. Due to the statute of limitations, they can no longer take legal action.
- Did you know that many homeowners do not seem to know the real situation of their own property because no thorough legality and zoning plan research has been done? Assuming that everything has been properly investigated, they recommend professionals.
- Did you know that it is impossible to determine the legality and the risks based on essential documents such as a Certificate of ownership (Nota simple), cadastral certificate, deeds of purchase, First and Second occupation licence and habitability certificate? This is because the current rules that the municipality has laid down in the zoning plan largely determine any restrictions and risks, regardless of whether a property has been there for years. This also applies to old fincas and cortijos.
- Did you know that essential documents can be obtained using tricks for sale? Such documents do not eliminate the problems with the municipality and insurance coverage. It can lead to irritation at the municipality because they have been misled.
- Did you know that the rules in the zoning plan do not only concern the destination, for example, ‘residential,’ but also everything that may be built on a plot of land or rebuilt after a fire or natural disaster? These new rules also apply to homes that were built years ago. Sometimes that is favorable, sometimes not.
- Did you know that zoning plan research is the field of expertise of architects who specialize in spatial planning? Many lawyers, therefore, leave this to these experts. No or incomplete zoning plan research is not an option if you want certainty. The Legality label is always determined by architects specialized in urbanism.
- Did you know that the local government is sometimes flexible in enforcing rules, while at other times it is strict? Today, you may be dealing with an official who turns a blind eye, but tomorrow, that person may have been replaced.
- Did you know that the local government decides on essential matters based on the zoning plan? Such as whether a house or apartment building may be rebuilt after a fire or natural disaster, permits are refused or not extended; occupancy is permitted, fines are imposed for illegal construction by previous owners, illegal or tolerated construction must first be legalized or demolished before permits are granted or extended.
- Did you know that real estate tax (IBI) is levied on completely illegal homes?
- Did you know that if there is a notarial deed, proof of ownership, or deed of transfer for the property, that says nothing about its legal status? A notary checks the legality of the transaction but not the legality of the property. He or she also does not conduct a zoning plan investigation.
- Did you know that illegal and also time-barred construction, including extensions, casitas, and swimming pools, can cause problems in obtaining or extending permits for the main residence and insurance coverage?
- Did you know that the Spanish tax authorities (Hacienda) take aerial photographs to detect illegal construction?
- Did you know that when the bank grants a mortgage, the valuation report rarely clearly states whether and, if so, what risks a property has? Almost all insurance companies require that the property meets the legal requirements.
- Did you know that in case of damage complying with the law and local regulations is the responsibility of the owner and not of the insurance company? In the event of minor damage, the property may not be investigated, but in the event of major damage, it undoubtedly will be. And what does an insurance company pay out if, according to the policy conditions, the reconstruction value is reimbursed, but the municipality does not allow reconstruction?
- Did you know that lawyers have a saying, ‘Mejor un mal acuerdo que un buen juicio’? That means ‘Better a bad deal than a big lawsuit.’ In other words, if there are problems, it is better to accept them than to try to get your way through the courts.
- Did you know that it is often said that a lawyer must come from the region because of local regulations, but that is not correct? The Legality label is based on local regulations so that any good lawyer anywhere in Spain can assist you. The Legality label report contains all the information he or she needs to draw up a tailor-made contract and the legal assessment.
