Verifying The Legality Of A Property & Pending Costs
One of the most important stages of any property purchase is ensure that the property is legal and there are no outstanding costs or charges on the property that will need to be settled.
This is a process that is normally undertaken by a lawyer, following the acceptance of an offer and after a reservation contact has been signed.
The following are the documents that are normally requested:
Nota Simple
The Nota Simple is short resume of the title deed of a property. It lists the names of the owners, a description of the property and any charges on the property. Its importance lies in that when you request a Nota Simple it will be up to date, so will includes any recent charges, such as if there is a mortgage on the property or any embargos.
IBI (Impuesto sobre Bienes Inmuebles)
The IBI is a town hall tax based on the catastral (rateable value of the property which is not the same as the purchase price and is normally less) and is paid yearly.
Basura
Basura is the annual rubbish collection tax that is paid annually
Community Fees
If the property is part of a community you will be contributing to the running of the community via the community fees. Community fees are paid normally on a quarterly basis
AGM (Annual General Meeting)
The minutes of the AGM are important as it gives an indication of the financial health of the community and if there are any issues between the owners.
Certicado de no infraccion
This is a document that is sometimes requested to ensure that town hall has not commenced any legal action against a property
LPO (Licencia de Primer Occupacion) or First Occupation Licence
When a property or development is completed this is a documents that is accorded to the property as proof that the property complies with the relevant regulations. In Marbella until 2022 it was issued by the town hall, but as of 2022 a declaration can be made by the promotor that the construction is compliant.
The LPO is a much contested document, given that its absence is not necessarily a problem as older properties built before 1987 did not require, but, by the same token given issues regarding town hall planning especially in the 1990’s and 2000’s many properties obtained an LPO that was subsequently revoked.
Each property is different and it is therefore very important to discuss with a lawyer the reasons why a property does not have a current LPO. It may not be an impediment to a sale as over 18000 properties have some sort of issue with their LPO and change hands but it is crucial to take legal advice in order to make the correct decision with all of the facts
Completion
Often at the time of completion some costs and charges will still be outstanding and need to be settle: A mortgage may need to be paid off, there may be some electrical bills pending, the IBI tax for that year may not have yet arrived etc.. Your lawyer will deduct any of these costs from the amount that is paid to the sellers, to ensure that you are not liable for them.
Note: The above list is not exhaustive and I recommend taking independent legal advice before entering into any contractual obligation
DO YOU HAVE A QUESTION?
Ricky Bache
Estate Agent
B.Sc Economics
(HEC Lausanne )
Asesor Credito Hipotecario
(UPV Valencia)
Tel : +34 609 50 22 44
ricky@marbellaconnect.com
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