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Process/tips/pitfalls re property

Process/tips/pitfalls re property

Old Jul 24th 2019, 4:32 pm
  #16  
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Default Re: Process/tips/pitfalls re property

I can't speak for the rest of Spain, but here, there is a "grandfathering" law, covering properties containing structures or additions not "legally" built (without permission). There are many such properties here.

Its a bit tricky, but essentially, if there are "illegal" structures or additions that have been standing for more than 10 (8?) Years without having been fined or otherwise been condemned, then the local council cannot force you to tear them down or fine you for it.

The drawback is that you can never receive legal permissions for any further builds of any kind. The property must remain "as is" in terms of structures, and the "illegal" structures will never be written into the escritura. You can never get a tourism licence. If it doesn't have electricity already, then you will he forced to have solar, although most properties not on the grid already have solar power. Many, if not most, are already on the grid, and they can't take that away either.

The upside of course, is that this condition lowers the value of the property substantially, and as in the case of many properties here, many are really lovely, well built homes.

So, if you only intend to live there, no intention of expansion, you can get a real bargain with no risk. Most buyers will run from such properties, but those who understand the rules and the restrictions, and it suits them, can get a lot more house for the money.

Again, I don't know if this is the same in the rest of Spain. But we are seriously looking at one such property now. And it's lovely. Unfortunately, the (very nice) owner is having huge problems selling it, because most of it is "illegal", but "grandfathered". I feel a bit guilty profiting from his misfortune, but he could have done it with permission. He chose not to. And that wasn't smart.
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Old Jul 24th 2019, 5:04 pm
  #17  
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Default Re: Process/tips/pitfalls re property

Originally Posted by amideislas
I can't speak for the rest of Spain, but here, there is a "grandfathering" law, covering properties containing structures or additions not "legally" built (without permission). There are many such properties here.

Its a bit tricky, but essentially, if there are "illegal" structures or additions that have been standing for more than 10 (8?) Years without having been fined or otherwise been condemned, then the local council cannot force you to tear them down or fine you for it.

The drawback is that you can never receive legal permissions for any further builds of any kind. The property must remain "as is" in terms of structures, and the "illegal" structures will never be written into the escritura. You can never get a tourism licence. If it doesn't have electricity already, then you will he forced to have solar, although most properties not on the grid already have solar power. Many, if not most, are already on the grid, and they can't take that away either.

The upside of course, is that this condition lowers the value of the property substantially, and as in the case of many properties here, many are really lovely, well built homes.

So, if you only intend to live there, no intention of expansion, you can get a real bargain with no risk. Most buyers will run from such properties, but those who understand the rules and the restrictions, and it suits them, can get a lot more house for the money.

Again, I don't know if this is the same in the rest of Spain. But we are seriously looking at one such property now. And it's lovely. Unfortunately, the (very nice) owner is having huge problems selling it, because most of it is "illegal", but "grandfathered". I feel a bit guilty profiting from his misfortune, but he could have done it with permission. He chose not to. And that wasn't smart.
wow! that might be an issue if i want to run 'art' residencies from the property or air bnb (not much but very occasionally...)

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Old Jul 24th 2019, 7:28 pm
  #18  
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Default Re: Process/tips/pitfalls re property

FWIW we rent a property out via AirBNB and Trip Advisor both will not accept a listing without a tourist licence and also will inform the tax authorities of every booking.
Getting a tourist accommodation licence is not so easy (certificate of first occupation !!) the licence saves a huge amount of exposure to financial pain and places one firmly on the radar!!
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