Is the buyer of a property responsible for urban planning disciplinary files?
Marta and Roberto are a Venezuelan couple who, after living in Madrid for 10 years, decided to purchase their holiday home in Marbella in 2021. After intensive searching, they finally acquired a property previously owned by a Lebanese couple, who were selling their house and business to return to their homeland. A few weeks after the purchase, Marta and Roberto decided to renovate the terrace. Part of their renovation plan involved covering a portion of the terrace and enclosing it with glazing, so they applied for a Responsible Declaration license. It was then they discovered a city planning file that affected their property.
To be more specific:
- Sanctioning File: The house had a sanctioning file due to an expansion without proper permissions, a severe infraction with a fine of €55,079.
- Disobedience: Despite urban planning warnings to halt the construction, it continued until completion, resulting in a very serious infraction with a fine of €189,887.
- Illegal Expansion: The 125 m2 expansion exceeded the allowed buildability, meaning the construction couldn't be legalized.
Therefore, its demolition was required to return it to its original state. It was at this point Marta and Roberto contacted Valido Home. After the initial shock and obvious dismay, they felt some relief, realizing they were not liable for the total sum of the infractions (€244,966). However, this feeling was short-lived. As the new owners, they were responsible for the demolition and restoration costs. Not only was this an unexpected financial blow, but it also meant losing the open kitchen-diner-terrace space they had fallen in love with.
It was clear that the previous owner was aware of the city planning infringement. The challenge was to demonstrate this knowledge so that, through Valido Home, we could initiate a Redhibitory Action to nullify the purchase agreement, recoup the invested money, and seek financial compensation for the personal harm caused to Marta and Roberto. Moreover, the real estate agent who mediated the purchase claimed ignorance of the situation, always referring back to the agreement he had with the previous owner. This agreement had a clause that absolved the agency from any such occurrences, placing the responsibility on the seller to disclose (a clause commonly found in agreements between real estate agencies and sellers).
Fortunately, at Valido Home, we obtained a technical report that the previous owner had commissioned from an architectural firm years before to legalize the works, which was undeniable proof of their knowledge. However, since they were not Spanish residents and no longer had bank accounts in the country, finding a financial resolution was challenging.
Conclusion
At Valido Home, we continue to work closely with Marta and Roberto to find the best possible solution to this nightmare. Their situation highlights the importance of acting before making a property purchase. Valido Home was founded with the vision of stepping in before a real estate transaction closes, aiming to protect our clients' legal, financial, and personal safety. Once the sale is finalized, dealing with such challenges can be complicated, costly, emotionally draining, and sometimes impossible. We always emphasize the importance of prevention and having the right advice before taking such a significant step as buying a home.
Miguel S. Moreira
Miguel is a trained architect and building engineer with a ample experience in the real estate sector. He is the co-founder of Valido Home and loves to inform about the risks involved in purchasing property in Spain.