{"id":215,"date":"2013-11-15T17:18:16","date_gmt":"2013-11-15T17:18:16","guid":{"rendered":"http:\/\/decotta.wpsine-dev.com\/off-plan-purchase-properties-under-construction-check-first-occupation-license\/"},"modified":"2014-03-31T14:00:39","modified_gmt":"2014-03-31T14:00:39","slug":"off-plan-purchase-properties-under-construction-check-first-occupation-license","status":"publish","type":"post","link":"https:\/\/decottalaw.com\/da\/off-plan-purchase-properties-under-construction-check-first-occupation-license\/","title":{"rendered":"Off plan purchase \u2013 properties under construction – check First Occupation License"},"content":{"rendered":"

A very recent Supreme Court decision has confirmed previous case law in Spain about developer obligations to off plan purchasers. Unless a contract to purchase a property specifically states otherwise the purchaser has the right to rescind the contract if the developer asks for completion and does not have the License of First Occupation.<\/em><\/p>\n

The courts have emphasized the purchaser cannot contract basic utilities in his or her own name without this document issue by the Town Hall. It is therefore held to be an essential element in protecting the purchaser\u2019s right to enter into occupation with the utilities required to live in the property.<\/p>\n

There have been a large number of such claims but a problem faced by some off plan purchasers is that the developer in some of these cases has now gone into liquidation during the economic crisis. They may therefore win a pyrrhic victory as they may be entitled to rescind or cancel the contract but find they are tied up in litigation to claim the monies owing to them.<\/p>\n

Insolvency proceedings where the developer has \u201cgone bust\u201d are rather intimidating for purchasers but some have been fortunate to be offered the return of their deposit monies directly by banks who have taken over the developments. This can be done by attending the notary if an offer is made to settle. However in many cases it is necessary to be formally represented before the court to get any payment that is finally made to creditors. Even if that final payment only represents a percentage of the monies invested it is still better than losing all of the funds placed with the developer.<\/p>\n

For more information about property law and litigation, please feel free to contact De Cotta Law on: Tel.: +34 952 527 014
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A very recent Supreme Court decision has confirmed previous case law in Spain about developer obligations to off plan purchasers. 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