The Licence of First Occupation Explained

[Jesper]

Hello,
We are about to buy a townhouse outside Marbella. It is a 10 years old townhouse. Our laywer was about to sign the contract yesterday but called us to inform us that there is no Licence of First Occupation. In the community there are three rows of townhouses but there is only licence for the first row. What is the "worst scenario" if we sign? Kind regards, Jesper

[Lawbird Lawyer]

Dear Sir,

It depends on the legal standing of your community. As you are probably aware in Marbella there were over 18,000 illegal properties.

This has been reduced to less than 500 with the (ever) imminent approval of Marbella´s new Master Plan. Those dwellings to be demoslied are largely uninhabited, with the exception of the Banana Beach which remains as the symbol of Marbella's Gil corruption era.

Please read my articles on the matter which has a list of those developments which had/have legal issues:

Developers Forced to Compensate Marbella's Town Hall for Planning Irregularities - 1st October 2007

Marbella’s New Master Urban Plan to be Approved Provisionally - 28th October 2008

The legal situation has vastly improved since I wrote both articles.

As I do not have details on your case it's hard for me to give you founded legal opinion. In any case one does not normally request a Licence of First Occupation for a resale property that is over ten years old. LFO are requested for new build or off plan property.

In your case do you have official utility connections (water & electricity)?

Do you have an individualised water and electrical meter?

Does the landlord have a contract with the utility companies?

Is he paying IBI tax?

In your case, and taking for granted your property is not one of the 500 dwellings legally earmarked for demolition, the worst case scenario would be for you to pay a fine to the Town Hall to "regularise" the illegality.

I know some developments in which a green belt area belonging to the Town Hall has been built upon by a front row ort else even a golf course, whereas the back rows where built in a proper building-designated area.

Yours faithfully,
Raymundo LarraÃ*n Nesbitt