NEWS

New planning Law in the Balearic Islands (I): Obligation of building and renovation

01Feb

We have been reading about this in the newspapers, but now it is clearer than ever. The LUIB in its art. 114 states that the owners of plots with a maximum capacity above four dwellings will be obliged to build in same within the periods stipulated in the urbanistic planning; and to renovate, if applicable, withing the periods stipulated by the administration.

If the planning has not stipulated a period to build in the plots, it is understood that this is four years to be counted from when the land has been classified as plot.

You will have noted that we continually speak about “plots” but we understand it is important to point out that this proceeding only refers to “plots”. A plot (art 25 LUIB) is land classified as urban ground apt for construction, according to planning classification and fulfils a series of requirements, amongst others, that basic urbanistic services of art 22 LUIB are available, in other words: streets and roads, water supply, electricity supply, public lighting and sewerage.

If owners does not comply with their obligations, the administration (automatically or by request) will begin a proceeding (ruled in article 117 LUIB) in order to issue a declaration of non-fulfilment, which will lead to the following consequences:

  1. Entry in the Council Registry of Plots unbuilt on and Buildings for Renovation, if said public registry has already been created by the corresponding Town Hall (art. 115 and 116 LUIB)
  2. Authorization to announce a tender of programmes of building action or renovation (art. 117.2 LUIB), that could be in the category of replacement execution or in the category of expropriation.
  3. Reduction of evaluation through an individual proceeding or by Joint valuation, with a reduction of 25%.
  4. Communication to the Property Registry Office to place a marginal note  of entry of the property.

Is it possible to transfer a building Plot or a building for renovation whilst in the situation of expropriation or compulsory replacement? Yes, if the purchasing party previously (art 119) accept before the Town Hall the promise to construct.

In summary, it is not a simple proceeding, quite the contrary, whereby, if you find yourself in this situation, it would be best to contact with specialized lawyers in this matter, who can advise you during all the process.

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