In our article from last week, we delved into the legal risks associated with purchasing a plot and building a luxury villa in the Costa Blanca. We examined key aspects that buyers should verify before making such a significant investment. The responsibilities that come with being a self-promoter in a construction project. Etc. This week, we continue to build on this topic by addressing other elements that can lead to a dispute with a luxury home builder. The role of the architect in the construction process. The significance of the occupation license. Or the clauses that should be included in your contract with the builder.
Should the fees and work of the architect be part of the contract with the builder?.
Not at all. The architect is an agent whose primary role is to independently oversee the construction process. And he must ensure that the building adheres to the agreed-upon specifications and requirements. Additionally, construction contracts typically state that payments to the builder are based on the architect’s review of the work completed by the builder. If the architect and builder are financially tied, this could lead to a major conflict of interest. And the transparency and accountability of the project could be compromised.
Having a direct contractual relationship with the architect is essential. Otherwise, the architect could refuse to communicate with you. Claiming that he is only accountable to the builder. This lack of direct engagement could hinder your ability to make changes in the project. As the architect might not share details of the project, plans or reports about the progress of the construction, etc.
The builder says that they take care of everything and request the occupation license on my behalf. Is this enough?.
No. There is a big different between requesting the occupation license, and actually obtaining it. The occupation license is the administrative document issued by the Town Hall that confirms that a property being suitable to live in. Before granting it, the Town Hall checks that the construction aligns with what was authorised in the building permit. Additionally, the lack of occupation license can severely impact your ability to set up definitive utility contracts for water, electricity, etc. for you house.
Key legal aspects when purchasing a luxury villa.
If you wish to purchase a luxury villa in the Costa Blanca, having a solid contract is essential. We recommend you not signing any agreement that positions you as the promoter (primarily responsible for all potential issues). Relying on third parties without effective control mechanisms, and the necessary expertise, can lead to significant risks.
When purchasing a plot, and signing a construction contract, it is very advisable:
– To engage an independent architect who has no ties to the builder.
– To retain a portion of the Construction Price, until the occupation license is obtained, and the work is verified to be correct.
-Etc.
Conclusion.
Purchasing a luxury villa in the Costa Blanca can be a complex process. At White-Baos Lawyers, we understand the unique challenges you face as a buyer. Our law firm specializes in real estate law, construction law, consumer rights and litigation. If you find yourself in a dispute with a luxury home builder, don’t hesitate to contact us.
The information provided in this article is not intended to be legal advice but rather to convey information related to legal issues.
Carlos Baos (Lawyer)
White & Baos.
Tel: +34 966 426 185
E-mail: info@white-baos.com
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