LFO Clause

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05 Oct 2008 00:00 by inspectahomespain Star rating in Corvera Golf & Orihu.... 1912 posts Send private message

Vip Supporter

I know that I have read on this forum, but I cannot find it, that there is a clause that can e added to the sales contract that may protect a buyer if the LFO is not issued

Can anybody please point me to where this is

_______________________

Roy Howitt

Property Management
www.corveraservices.com

Bank Repossessions

www.murciabankrepossessions.com

www.corveraholidays.com

 

 




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05 Oct 2008 11:13 by mariadecastro Star rating in Algeciras (Cadiz). 8028 posts Send private message

mariadecastro´s avatar
Well, you can add an specific clause ,but more than by a contract clause you are protected by Law 57/68 whish allows contract cancellation and refund of full deposit plus legal interests if the house is not handed ( with FOL) by completion deadline ststed in the contract. 

Extensions are possible, but need to be expressly admitted by buyer.

_______________________

Maria L. de Castro, JD, MA

Lawyer

Director www.costaluzlawyers.es

El blog de Maria



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05 Oct 2008 11:19 by inspectahomespain Star rating in Corvera Golf & Orihu.... 1912 posts Send private message

Vip Supporter

Thank you Maria and yes I know my client will need the lawyer

They have a problem because the property that they still want to buy has no LFO which the builder claims is due soon but their mortgage offer runs out on the 31 October and the bank will not give a mortgage without the LFO

The property is VERY WELL priced

Their financial circumstances have changed so they may not be able to get another mortgage

On this site, where there have already been a large number of LFO issued, so I believe that they will get them eventually and in fairness to the builder they are not requiring that people complete until they are issued

I am trying to see if there is someway for the bank to accept the mortgage

_______________________

Roy Howitt

Property Management
www.corveraservices.com

Bank Repossessions

www.murciabankrepossessions.com

www.corveraholidays.com

 

 




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05 Oct 2008 17:33 by rowlandsbb Star rating in 2010 50/50 Macclesfi.... 777 posts Send private message

rowlandsbb´s avatar
The issue of LFO [ or sometimes called by us Brits Habitation Licence] is ' straight forward!!!

If in UK you were buying a new home at a VERY GOOD PRICE would you complete without the final building regulation certificate and wthout being able to connect to an electrical and water supplier?

No......... and as in Spain you will not get the mortgage without it
 
It is not a legal property to live in or to rent without a LFO

If the bank will not give the builder money without one then neither should a buyer

No risk

_______________________

 

 

 




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05 Oct 2008 18:49 by mariadecastro Star rating in Algeciras (Cadiz). 8028 posts Send private message

mariadecastro´s avatar
http://www.eyeonspain.com/Secure/articles/article.aspx?article=/licence-first-occupation.aspx

You may find it interesting.

Maria


_______________________

Maria L. de Castro, JD, MA

Lawyer

Director www.costaluzlawyers.es

El blog de Maria



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05 Oct 2008 21:34 by Just Dan Star rating. 552 posts Send private message



The issue of LFO [ or sometimes called by us Brits Habitation Licence] is ' straight forward!!!

If in UK you were buying a new home at a VERY GOOD PRICE would you complete without the final building regulation certificate and wthout being able to connect to an electrical and water supplier?

YES I HAVE

No......... and as in Spain you will not get the mortgage without it

YES I HAVE
 
It is not a legal property to live in or to rent without a LFO

YES I HAVE LIVED IN AND RENT

If the bank will not give the builder money without one then neither should a buyer

No risk

EVERY RISK


Sorry but this simplistic approach can be very damaging and should be considered on a case by case basis.

Just Dan






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06 Oct 2008 09:09 by rowlandsbb Star rating in 2010 50/50 Macclesfi.... 777 posts Send private message

rowlandsbb´s avatar
Dan you sound like a dealer and yes many  property buyers take a view but not really for the life styel buyer..which is what posts on this forum are meant to help and inform

Taking what is known as the builders mortgage, they do not always bother about the LFO..but I wonder if this will still apply in the current crisis situation!!

The Spanish banks seem to be better off than most, but that does not mean that there are not problems!

Not easy for a professional agent to advise a client to complete without a LFO.....if your professional indeminity insurers knew you were doing that they would probably cancel your policy!! 
 

_______________________

 

 

 




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06 Oct 2008 10:14 by inspectahomespain Star rating in Corvera Golf & Orihu.... 1912 posts Send private message

Vip Supporter

In my case I am not an agent, I will not benefit financially if this person completes and I have only managed their snagging process

I have many articles published on this website where our recomendation is ALWAYS not to complete if these is not an LFO in place howvever more and more now I believe that this has to reviewed on a case by case basis

With the large number of developers going out of business it seems that some people want to secure something rather than loosing all of their money, especially as it also seems that some people do not have the required bank quarntees in place

In this particular case this villa is on a golf development where more than 200 propeties have been completed on and where the LFO has come through OK however with the Town Hall delays it takes time

The reason for the post was, if the onwers go ahead against all of the advice, that there is some way to protect them by adding the clause to the contract at The Notary

 



_______________________

Roy Howitt

Property Management
www.corveraservices.com

Bank Repossessions

www.murciabankrepossessions.com

www.corveraholidays.com

 

 




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06 Oct 2008 11:55 by Just Dan Star rating. 552 posts Send private message


Nope
Not an agent and you should not complete without the habatation licence
Why am I supposed to be an agent just because I am posting in reality of whats going on.
Now if you have plan B while the developers go bust and Banks cant or will not pay out on Bank Guarantees then speak up.
As I said some consumer associations and solicitors say that depending on the circumstances it may be prudent to complete due to the whole sorry state of the property market and in particluar if you dont have a Bank Guarantee and the issue of the licence look almost certain to be given the green light.
There are 50,000 + properties in Marbella alone that havent had a licence since day one many years ago.
At the ned of the day its not for me to say complete,or you to say not to.
It has to be on a case by case basis and I happen to feel that the way it is it may be worth looking at having tangible.
1 Yes I do live in an apartment with no habitation licence
2 Yes I do have all services that are in my name
3 Yes I do rent out an apartment like hundreds of thousands of others with no habitation licence until the market returns
4 Yes I had no problem getting a choice of mortgages
5 Yes I do live in a property without an L.F.O and now many that also do and have for years.

Now there are  many reasons why the habitation licence has not been issued not withstanding the slowness of the councils and as inspectahomeinspain has mentioned a particular instance
No some may wish to use the forums to point to direct relevents to law in the hope that it will drum up support for their cause
I choose to look at all factors and make my own mind up and not always follow the pack.

P.S I also have another property that I CHOOSE not to complete on and am in the process of court proceedings. As I said just maybe its a case be case basis as one fits all just aint going tho work
But what the hell this is only my opinion so take no notice if you feel its spoiling the party


Kind Regards
Just Dan








This message was last edited by Just Dan on 10/6/2008.



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06 Oct 2008 16:03 by Just Dan Star rating. 552 posts Send private message


Now its getting seriuos

Pensioner eaten by his own dogs

A man who lived in a cave home with ten dogs has been eaten by his pets.

The remains of the pensioner’s body were found in his dwelling in Baza Granada. He is thought to have died from natural causes, reports the EFE news agency. It is thought that the dogs set about eating his body because they had no habitation licence

Website typicallyspanish.com reports that the remains of the man, little more than a cranium and bones thought to be his legs, were taken to the Anatomic Forensic Institute in Granada. The dogs have been sent to a local pound.

Just Dan





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06 Oct 2008 22:43 by DoubleJ Star rating in Las Alpujarras and L.... 150 posts Send private message

DoubleJ´s avatar
Was he a developer or an agent ?



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07 Oct 2008 09:02 by Just Dan Star rating. 552 posts Send private message

 

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This message was last edited by Just Dan on 11/28/2008.



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