Selling a house in Spain becomes more difficult

Flats and Houses take 10 times longer to sell today than in 2004

A report on the sale of second homes in Spain by Grupo I has found that while in 2004 a promotion of apartments or terraced houses on the Spanish coast took between 2 and 3 months to sell, today similar properties can take as long as up to 2 years to sell.

According to the study the slow down in the housing market is most evident in the second homes sector. The rise in prices together with the rise in interest rates are partly responsible for this slow down. However, Raúl García, author of the study and director of Grupo I, also highlighted the negative image that building projects on the coast now have.

This year 140,000 new properties in this sector will be on sale out if which 90,000 are expected to be sold leaving a surplus of 50,000.

In the first quarter of this year prices for residential properties have risen 7.5%.

Related:
Houses for sale in Spain

Decline in house sales

House sales fall 11.5% in Spain

The number of house sales in the first quarter of this year fell compared to the same period last year according to figures taken from the Land Register. Over the last 12 months there have been 893,000 houses or flats purchased which mean that house sales have fallen 11.5% in just one year.

The drop in house sales has been more acute for new properties and has fallen almost 16% while sales of used housing have fallen by only 8%. These figures confirm the slow down in the property market.

In the first quarter of 2007 232,000 houses or flats were purchased according to the Land Register. However, this figure is almost 23,000 less compared to the same period last year which works out at 9% less.

Figures vary according to different parts of Spain. Over the last 12 months house sales dropped by 20% in Aragón and by 18% in Galicia. In Catalunya there was a drop of 15%, almost 14% in Madrid, 13% in Valencia and 7.5% In Andalucia.
Out of all house sales in Spain for the first quarter of this year 58% were for used housing while 42% was for new housing.

Compensation for building defects in Spanish property

How to claim compensation for building defects in your Spanish property

If you have bought a property in Spain and you have found building defects, it is possible to claim compensation.

The law “Ley 38/1999 de 5 de Noviembre, de Ordenación de la Edificación” regulates these kind of matters. Alvaro Porcar Agustí of Porcar Abogados, a leading company of solicitors in Valencia offers the following advice to property buyers in Spain who have discovered defects in their new homes.

I.- What to do when building defects appear?

It is advisable that you take down the date when the defect appears, take photos, contact a notary and include the discovery in the property community book.

II.- Who should make the claim?

In theory, any owner can claim, but in practice it is usually the chairman of the proprietary community who makes the claim on behalf of the property owner(s).

III.- What is the time limit?

• One year since the building was completed for defects related to finishings


• Three years since completion for inhabitable defects


• Ten years since completion for major structural and foundation defects.
  

Note that any claims must be made within two years of the appearance of defects in the property.

IV.- How do I know who is responsible?

In the town planning department of your city hall you will be able to find out the promoter, construction company, architect and clerk of works of your property.

V.- How do I make my claim?

Always in writing, first of all to the promoter and builder company, to try and reach a friendly claim. Any lawyer can make the claim for you, and claims will need to be written in Spanish. If the friendly claim fails, it will be necessary to go to court and you are advised to get an estimate of costs from your lawyer before embarking on legal action.

VI.- Is my claim likely to be successful?

The rate of favourable solutions is actually very high, though obviously each case is different and the process can be quite lengthy. In most cases the courts rule against all the parties that took part in the construction of your property (promoter, builder company, architect and clerk of works).

Furthermore, all buildings initiated after May 2000, have a full insurance policy to cover structure and foundation damages. Architects are also covered by a compulsory professional insurance policy and in both cases the policies provide guarantee of the solvency, when court sentence arrives.