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Illegal Builds, Developers Going Bust: Who would buy a newbuild in Spain today?

Illegal Builds, Developers Going Bust: Who would buy a newbuild in Spain today?

Old Jan 17th 2011, 4:06 pm
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Default Illegal Builds, Developers Going Bust: Who would buy a newbuild in Spain today?

What it says on the title, really - we've seen a city-edge house on a development, would at least think about it BUT how on earth can anyone buy a new house with any peace of mind about not having to pay for electricity supply if the developer goes down, or be sure the development IS actually legal?
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Old Jan 17th 2011, 4:13 pm
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Default Re: Illegal Builds, Developers Going Bust: Who would buy a newbuild in Spain today?

How to Avoid Investing in Illegal Spanish Property:

http://www.wikihow.com/Avoid-Investi...anish-Property
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Old Jan 17th 2011, 4:59 pm
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Default Re: Illegal Builds, Developers Going Bust: Who would buy a newbuild in Spain today?

That's the main problem, despite having all the paperwork many are still illegal, retrospective law!
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Old Jan 17th 2011, 5:03 pm
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Default Re: Illegal Builds, Developers Going Bust: Who would buy a newbuild in Spain today?

Mmmm ... I can only say buy one that is on an established urbanisation or estate. The builder here had been building on this area for 20 years and we felt fairly safe (gulp).

If I was coming here today though knowing what I know now I would be a lot more cautious
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Old Jan 17th 2011, 7:01 pm
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Default Re: Illegal Builds, Developers Going Bust: Who would buy a newbuild in Spain today?

Originally Posted by Mitzyboy View Post
Mmmm ... I can only say buy one that is on an established urbanisation or estate. The builder here had been building on this area for 20 years and we felt fairly safe (gulp).

If I was coming here today though knowing what I know now I would be a lot more cautious
Wise words, I think everyone feels the same.
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Old Jan 18th 2011, 1:05 am
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Default Re: Illegal Builds, Developers Going Bust: Who would buy a newbuild in Spain today?

Originally Posted by Mitzyboy View Post
Mmmm ... I can only say buy one that is on an established urbanisation or estate. The builder here had been building on this area for 20 years and we felt fairly safe (gulp).

If I was coming here today though knowing what I know now I would be a lot more cautious
I think we all feel that way, even those of us that don't live on an urbanisation.
All we can hope for is that our solicitor did his job and was honest.....something that's debatable with the one that we used!
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Old Jan 18th 2011, 8:52 am
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Default Re: Illegal Builds, Developers Going Bust: Who would buy a newbuild in Spain today?

Originally Posted by megmet View Post
I think we all feel that way, even those of us that don't live on an urbanisation.
All we can hope for is that our solicitor did his job and was honest.....something that's debatable with the one that we used!

Well ... I had to sack my first solicitor. I did what I tell people here NOT to do, and it's through these experiences many of us are able to pass on good advice. I originally used a solicitor that was recommended by the builder.
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Old Jan 18th 2011, 2:43 pm
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Default Re: Illegal Builds, Developers Going Bust: Who would buy a newbuild in Spain today?

So essentially there's no such thing as a 'safe' newbuild buy?
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Old Jan 18th 2011, 4:03 pm
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Default Re: Illegal Builds, Developers Going Bust: Who would buy a newbuild in Spain today?

Originally Posted by fionamw View Post
So essentially there's no such thing as a 'safe' newbuild buy?

..... there are NO guarantees
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Old Jan 18th 2011, 4:03 pm
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Default Re: Illegal Builds, Developers Going Bust: Who would buy a newbuild in Spain today?

Originally Posted by fionamw View Post
So essentially there's no such thing as a 'safe' newbuild buy?
If your new-build is on the edge of a city (I am guessing Malaga) then look to see what the land the development was built on is classed as. If it is "urban" then you will be safe.

Also do some research into problems in the area, most the problems occur when developments spring up in the middle of the campo/montes but come under the juristiction of some small time mayor who is lining his and his mates pockets.

Finally, talk to a lawyer and check with the authorities, probably in the junta de andalucia.

It really shouldnt be a difficult job checking whether a development is 100% legal or whether there is likely to be problems in the future. Just remember that while permission is given at the local level, it is the national law that can overrule this decision, so the development needs to be in compliance with national building regulations (e.g. in terms of the ley de costas and building on rural and semi-rural land).

Finally, before buying I would get a letter from my lawyer and a surveyor with their professional letterhead confirming that the property is legal (in Spanish). That would then take pride of place in my paperwork collection!
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Old Jan 18th 2011, 4:13 pm
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Default Re: Illegal Builds, Developers Going Bust: Who would buy a newbuild in Spain today?

Originally Posted by cricketman View Post
If your new-build is on the edge of a city (I am guessing Malaga) then look to see what the land the development was built on is classed as. If it is "urban" then you will be safe.

Also do some research into problems in the area, most the problems occur when developments spring up in the middle of the campo/montes but come under the juristiction of some small time mayor who is lining his and his mates pockets.

Finally, talk to a lawyer and check with the authorities, probably in the junta de andalucia.

It really shouldnt be a difficult job checking whether a development is 100% legal or whether there is likely to be problems in the future. Just remember that while permission is given at the local level, it is the national law that can overrule this decision, so the development needs to be in compliance with national building regulations (e.g. in terms of the ley de costas and building on rural and semi-rural land).

Finally, before buying I would get a letter from my lawyer and a surveyor with their professional letterhead confirming that the property is legal (in Spanish). That would then take pride of place in my paperwork collection!
The problem with previous buyers who got caught out in the "scam" was that they were not forewarned, and in many cases the buyers concerned did not find out that there was anything wrong with their properties until a few years later.

Now with hindsight the future buyers can all learn from past "mistakes" on the part of buyers, lawyers etc.

So as this post says, it would be best to check, double check, triple check at all levels.........it is a lot at stake and an oversight could work out very expensive.

A good point about the paperwork, the more paperwork you can gather, the better.....

The only problem I can see with new builds of larger developments is if a large number of the properties take years to sell.
Then the buyer could end up in a ghost town for years to come, untill the remaining properties are sold.
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Old Jan 18th 2011, 4:20 pm
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Default Re: Illegal Builds, Developers Going Bust: Who would buy a newbuild in Spain today?

Originally Posted by fionamw View Post
So essentially there's no such thing as a 'safe' newbuild buy?
No .... thats not quite the case. Clearly my house hasnt been knocked down and is legal and so are many of the houes around me. You might equally say theres no such thing as a safe established house buy. You just need to do a lot of research on whatever you buy
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Old Jan 18th 2011, 5:17 pm
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Default Re: Illegal Builds, Developers Going Bust: Who would buy a newbuild in Spain today?

Originally Posted by JLFS View Post
The only problem I can see with new builds of larger developments is if a large number of the properties take years to sell.
Then the buyer could end up in a ghost town for years to come, untill the remaining properties are sold.

This is not the case for all of Spain. In 2005 I bought 2 properties off plan, 1 in Denia and one in El Vergel, finished in 2007, rented out then sold last year. They were 100% legal, all the paperwork was correct both when I bought them and when I sold them.
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Old Jan 18th 2011, 5:24 pm
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Default Re: Illegal Builds, Developers Going Bust: Who would buy a newbuild in Spain today?

Originally Posted by whitelinen View Post
This is not the case for all of Spain. In 2005 I bought 2 properties off plan, 1 in Denia and one in El Vergel, finished in 2007, rented out then sold last year. They were 100% legal, all the paperwork was correct both when I bought them and when I sold them.
Of course it it not true for all of Spain, and anyone who said it was would be talking throught their backside. If that was the case then the whole country would be doomed.
It was just a warning to be exta vigilant to buyers, so that they are not one of the unlucky ones who have been left with a legal and financial mess
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Old Jan 18th 2011, 6:24 pm
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Default Re: Illegal Builds, Developers Going Bust: Who would buy a newbuild in Spain today?

Originally Posted by Mitzyboy View Post
Well ... I had to sack my first solicitor. I did what I tell people here NOT to do, and it's through these experiences many of us are able to pass on good advice. I originally used a solicitor that was recommended by the builder.
We made the mistake of using the one recommended by of all people....the estate agent.
Only later did we find out what a bad reputation he had locally.
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