I cannot get on a loan on a property as it has not been fully registered. Which is the best way forward?
Antonio Flores Vila
14th of February 2001
Q. I purchased my property in 1999 and recently applied for a loan against it. The lending bank have told me that (having read a Nota I purchased my property in 1999 and recently applied for a loan against it. The lending bank have told me that (having read a Nota Simple they arranged last month) they can only lend against one of the two floors as one of the floors, a more recent extension, has not been registered. I employed a fully qualified lawyer with power of attorney to do all the conveyancing and necessary checks of the property. Where do I stand? What's the worst case scenario?
A. If you gave instructions to your lawyer to do all the necessary legal
arrangements with regards to the property, you should remind him of
the necessity of registering the extensions made on the property.
However, you will need some paperwork for that, i.e building licence
and a certificate from the relevant engineer/arquitect in charge of
The absolutely worst case-scenario is that the extension is deemed as
illegal and subsequently receive an instruction by the Town Hall to
demolish it, and if not complied with, to be demolished at your cost
by town-hall appointed contactors. This is a rare and unusual outcome,
but it is possible if the floor has been built without complying with
the municipal regualtions.
If it has been legally built but without the pertinent licence, then
the situation would require to obtain a licence for the works even
though the works have been completed.
Only when the registration of the floor has been completed you will be
able to obtain a loan.