False representation by the vendor
You will be covered for:
- The next 20 years, if they were selling or leasing your
own property, forging your identity. Spanish Supreme Court
has ruled in favour of a third party purchasing property in
good faith. You could lose your property.
- The act of purchase, if the vendor either is not the real
owner or he/she acts in representation of the owner with
false or revoked powers.
Non-inscription in the land register
Consequences:
- LEGAL DISADVANTAGE of the owner whereby he/she
may lose the property or suffer financial loss against charges
or seizure.
- LEGAL INSECURITY. The insurance acts in this case
as an alternative register, providing the guarantees which
should have been offered by the Land Registry.
Demolition Order
Imagine that after several years, a Demolition Order is placed
on your house because it is shown that the building license
by virtue of which it was built, is illegal because it infringed
land classification (Urban Planning Scheme) at the time of
purchase, or simply because your house was built without
a license or in breach of the terms of the building license.
Other Administrative Orders in Force
You discover your house is subject to an undisclosed ruin
or eviction order from your date of purchase.
Sale “As Is”
Even when some time has gone by, there are numerous cases
in which it is discovered that part of a property does not belong
to the person who has bought it. For example: a terrace turns
out to be common property, which has been fraudulently added
to the plot by the previous owners.
Impossible to Access
When your home, garage or storeroom cannot be accessed,
you will be covered. For example: the seller may not vacate
the premises on completion, there is no access to your
parking space or garage and you cannot park, you are not
given the storeroom you purchased, etc.
Defective Size in off Plan Purchase
- If the property is bought “off plan” and following physical
completion it is found to be more than 10% smaller than
for what it was contracted.
- If the parking space is purchased “off plan” together with
the property, and following physical completion it is found
to be too small to park a standard size car in.
Bankruptcy of the Seller
If a judge rules that your property is subject to the previous
owner's bankruptcy (preferential rights of the creditors)
Third Party Rights: Easements
Undisclosed right of way or unregistered charge in favour
of a third party is discovered that affects the property.
Third Party Rights: Unknown heirs
- Old property owners or unknown heirs from the past
appear to claim their property.
- It is determined whether there has been mistaken
execution of a Last Will and Testament during the most
recent transactions that affects your property.
Unpaids Taxe, quotas or unsettled community expenses
Over the course of the 20 years:
- You discover you have been paying too much in community
fees because at the time of purchase the property was
assigned the wrong coefficient.
- There is an attempt to make you pay an incorrect quota
or unsettled community expenses prior to your purchase.
- Or for example, there are outstanding taxes prior to your
purchase that you should not pay.
- Etc.
Boundary Issues
Your neighbour says that the home you bought occupies
some of the land belonging to him.
Hidden Valid Lease
You have bought a house that has, previous to your purchase,
been leased to a third party. The lease is valid until it
expires, regardless of who holds title to the property.
Purchase from an incapable seller
You discover that the person from whom you bought the
property lacked the necessary legal capacity to sell (not of
age, mental handicap, senile dementia, etc.)
Hidden Legal Defect
Over the course of the 20 years, you may find a mistake
or discrepancy in the title deeds that makes it impossible
or difficult to sell your property or that limits your rights
of ownership or enjoyment.
Community disputes
Over the course of the 20 years, you may discover
agreements passed by the Community of Property Owners
that could limit your rights over the property.
Marital Problems
The person from whom you bought your property has sold
it without spousal consent and that threatens your title to
the property. If there is a minor child involved, you may
not able to access the home you have bought.
Lack of the certificate of occupancy
You discover that the property you have recently bought
is not issued the certificate of occupancy which is compulsory
to connect water and electricity supply.
Exclusions: Damage, contamination and all defects in the
knowledge of the owner prior to the date this policy takes
effect. |
