In Spain, it is usual to sign an earnest money contract or “contrato de arras” as part of any real estate transaction. The figure of the arras or depostis, confirmatory, penal and penitential give legal security to the deal and reflect different levels of commitment.
The operation of holiday tourist rentals in Spain requires careful consideration of the existing restrictions. Public authorities, especially the Autonomous Communities and Town councils, and the communities of owners can impose obligations, limitations and prohibitions on these activities.
Although ownership has traditionally been the predominant form of housing tenure in Spain, the demand for rental accommodation is rapidly growing, giving rise to new models of rental property investment. Build to rent, rent to rent, coliving, and senior living are clear examples.
In Spain, commercial leases are not subject to strict regulations like residential leases, and it leaves a central role to the parties’ will when formalizing the corresponding contracts. However, the LAU contemplates some specific provisions worth considering.
An owner who considers that a decision of the Board of Owners of the condominium owners’ association to which he belongs is detrimental to his interests or entails a severe detriment that he has no obligation to bear may challenge it through the courts.
The Spanish Horizontal Property Law provides condominium owners association (COA) with two specific legal actions against defaulting co-owners or nuisance occupants. One of them is the order for payment procedure.
The Spanish Horizontal Property Law provides for two specific actions for the condominium owners association in the event of nuisance or delinquent co-owners or occupants. One of them is the action for cessation.
The horizontal property regime, the equivalent of the condominium in English, is established per se by the partition of a building or a housing development among several owners. However, its constitution through a master deed and its regulation by statutes or internal rules allows considering the particular needs of each homeowners association.
Forward purchase and forward funding contracts are particular kinds of contracts that perfectly meet the characteristics of a sales contract of a future good. These are two types of bilateral sales contracts of a future building concluded between an owner builder seller and an investor buyer. These contracts are often used in large real estate transactions.
An immovable property seller must take the risks that an immovable property sold to a buyer might encounter. In other words, the seller is held liable for the faults and defects that may arise after the sale. The Spanish Civil Code along with Law 38/1999, of 5 November, on Construction Planning (LOE) establishes the different types of liability, as well as the limitation period for actions for damages.