Local Knowledge - so important

Local Knowledge – so important

Local Knowledge is Really Valuable

You may well have seen in the international press that over the last few years the Marbella property market has suffered a level on uncertainty as a result of a lack of a new town “General Plan”. The full name in Spanish is the Plan General de Ordenacion Urbana but is more frequently known by the initials “PGOU”. This sets out the precise town planning denomination for each of the many thousand’s of parcels or plots of land in the Marbella region. In effect, its is a code by which public authorities, private developers, commercial developers and home owners in Marbella can establish whether their property is ‘legal’ as being in conformity with the General Plan.

Without delving too much into the recent socio-political history of attempts to revise the Marbella General Plan it suffices to say that there have been various attempts. On each occasion the regional government, primarily the Junta de Andalucia in Seville, the courts and/or central government in Madrid have returned the proposed plans as either incomplete or in other ways defective. As a result, the most recent and valid PGOU for Marbella dates from the 1986 General Plan. If you are considering purchasing a property in Marbella you do need to have a passing understanding of this position as it is a very important consideration when buying in Marbella.

So what is the result of all this?

As the most recent and widely accepted as valid General Plan for the Marbella region dates from 1986, those property developments that conform to the 1986 General Plan are regarded as ‘legal’. Conversely, anything that has not been otherwise ‘legalised’ through the courts or with the express approval of the Regional Government must be regarded as suspect.

Your Abogados’ local knowledge will be invaluable to assist you in deciding, as an absolute minimum, whether your proposed property purchase in Marbella is of a property that conforms in all respects to the 1986 General Plan for Marbella.

He or she will know, for example, that the beautiful Casablanca Beach development in San Pedro de Alcantara was built on the site of a proposed old people’s home as detailed in the 1986 General Plan. Additionally, that the Banana Beach development in Midtown Marbella was built on a site scheduled for Marbella‘s central railway station. There are several more notable examples of such planning abuses and local knowledge needs to be relied upon to ensure that you are properly informed about the legal status of your dream home in Marbella.

At a more micro level there appears to have been a historically cavalier approach to the necessity of adhering to the PGOU in the Marbella region. I have heard of several examples of individual villa properties that have been redeveloped over the last thirty years and have been extended significantly beyond their designated “buildable area” as legislated for in the PGOU. I understand that the “old guard” in Marbella took the view that if their “over building” was ever discovered by representatives of the Marbella Town Hall it was anticipated that a fine would be levied and upon its payment there would be a slip of paper delivered assuring the owner of “legality”. Of course no such thing should be assumed and quite rightly your Abogado will point out any such flaws in the precise planning position enjoyed by your target property. To be forewarned of such an issue is to be for armed.

What is wrong with buying a property that does not conform with the 1986 General Plan? Four simple reasons why you should think carefully about buying such a property:

If you are buying with a mortgage loan from a Bank their priority will be to ensure that their lending is secure. An ‘illegal” property raises alarm bells and it may well mean that the prospect of borrowing on such property is unavailable to you. Equally, you may see it as comforting that the seller of the property, in turn, had a mortgage from a reputable, even an international, bank or savings bank (called a “Caja”) and at some time in the past the lending bank may well have concluded a level of due diligence on the property. Without sight of the bank’s lending rationale this may not be conclusive but it may well be persuasive. Buying a ‘suspect’ property outright with your own resources may mean that you limit the opportunity to resell your property should you decide to upgrade in the future. Any incoming purchaser who has taken the opportunity to question the property’s planning history may well be put off if there are any doubts about its precise position.

Should you buy such a property and want to carry out any material renovation works, you will be required to obtain a Small Works License from the Marbella Town Hall. If the property’s legal status is suspect the Town Hall may well refuse to grant you such a license to renovate thus frustrating your plans to get the most out of your purchase. In order to secure a Tourism License, that is required should you wish to place your purchased property in Marbella up for holiday lets, you will need to show the property’s First Habitation Licence. A First Habitation Licence may well have not been granted by the Marbella Town Hall if the property does not conform to the 1986 General Plan.

Well, now for some really good news! Whilst the wheels of government may never turn as quickly as we’d all like, we are very pleased to be able to report that the Marbella Town Hall’s plan to revise and publish a new PGOU are already under way. Please see here our piece entitled “Marbella News”
Should you be interested in discussing the Legal process involved in buying a property in Marbella, we would be delighted to assist you. Our team of bi-lingual, highly experienced and wholly independent team of Abogados are ready to help you.

Please call me, Mark FR Wilkins, during usual business hours on +34 600 343 917.

Please note that our posts are for general interest. They are no substitute for proper legal advice tailored to your specific circumstances as provided by a qualified Abogado who is experienced in the application of the Spanish Law.