A certificate of occupancy is a legal document certifying that a property meets the necessary requirements to be inhabited under current legislation. These requirements include spatial considerations, ventilation, lighting, and safety, as well as the minimum required facilities.
These documents are required in order to register utility services if necessary. This applies to water, electricity, and gas. They are also required for buying and selling real estate. However, it is important to note that in some areas of Spain, property deeds cannot be executed without this document.
Furthermore, the Habitability Decree requires notaries to request the certificate for all transactions involving residential properties. This applies to transactions such as purchases, sales, transfers, acceptance of an inheritance, and transfers to creditors, among other procedures.
In addition, if you wish to switch utility providers, the supplier may request this document to verify compliance with current regulations. Generally speaking, it is an essential document for various administrative procedures, although in many regions of Spain it is not considered mandatory.
Is it possible to buy a house without this document?
When you're looking to buy a home, your developer may tell you that you need to sign the contract even before you have the certificate of occupancy. In that case, you have the option to refuse to sign until you have the document.
However, there are some regions in Spain, such as Madrid, Andalusia, and Aragon, that have waived this requirement. It is, however, required for new construction properties.
In addition, there are some cases in which the seller is exempt from liability. An example of this is a home that is uninhabitable because it requires renovations, etc. In such situations, the buyer and seller may agree on an exemption, for which it is advisable to seek expert advice on the matter.
Are the first-occupancy permit and the certificate of occupancy the same thing?
People often confuse these two documents, so it is important to clarify that they are not the same. Although they are similar, they certify and authenticate compliance with different requirements, as will be explained below.
Thus, the first-occupancy permit is the planning document that certifies that a property was built exactly as specified in the plans. This document must be obtained either for newly constructed homes or for those that have undergone any type of alteration.
Meanwhile, the certificate of occupancy serves to demonstrate that the property meets the minimum health, safety, and hygiene requirements for habitation. It is worth noting that these properties may be for first-time or second-time occupancy.
The Importance of a Property Having a Certificate of Occupancy
In Spain, properties must have a first-occupancy permit, as this document certifies that the home has been inspected and is therefore safe for occupancy. For this reason, it is important to have this permit in order to enjoy the following benefits:
You can be completely confident that the property complies with all applicable regulations. This, of course, assumes that the house has a certificate of occupancy. This ensures compliance with the building permit and all requirements established by urban planning laws.
Opportunities for obtaining a mortgage. If you have this document, it will be easier for you to secure a mortgage. Although it is not required, the banking and financial sector will ask for it.
Have access to utility services. This document grants you access to electricity, water, gas, and telecommunications.
It is important to note that in certain regions of Spain, where some companies provide services to homes that do not have a certificate of occupancy, you may submit the certificate issued by the local government. This will serve as proof that the certificate has already been requested.
