En el ámbito de la construcción de la obra nueva es necesario completar una serie de trámites para que, una vez que la edificación esté lista, pueda ser disfrutada convenientemente. Y uno de los más importantes es el de la escritura de obra nueva.
So, here at CULMIA, we’re going to tell you everything you need to know about this document, including the requirements and paperwork you’ll need to provide if you’re looking to formalize it. Will you join us?
What is a new construction deed?
A new construction deed is a notarized document that records the changes made to a parcel of land for the purpose of constructing or building on or beneath it. It allows for the recording of these changes in the land registry records, enabling the management and coordination of the registration process as well as the off-registry reality.
To put it simply, a notary certifies that a building is being constructed (or has already been built) on a specific piece of land. This document can then be registered with the Property Registry so that we can easily complete any necessary procedures. Essentially, this is because it confirms that we are the owners and that, as such, we can make any changes we deem appropriate, in addition to obtaining legal protection in the event of any mishap.
Which two types of people can execute a deed for a new construction project?
There are two parties that can carry out this procedure, depending on who is responsible for the construction project:
- Developer or construction company: This is the most common scenario, because a company is responsible for initiating and carrying out the construction project. It typically does so as part of a development project, with the intention of later selling or renting the property.
- Self-builder or private individual: In this case , an individual decides to build a home on land they own for their own use.
Is it mandatory to draw up the deed for a new construction project?
It depends. If you are a developer or a construction company, you must file this deed if you plan to sell the building and need to finance the construction through banks. Private individuals or self-builders , on the other hand, are not initially required to file this deed, although they will eventually need to do so if they need to connect to utility services, such as electricity and water. Therefore, we can say that, even if it is not strictly necessary, it is highly recommended to complete this process.
When should we draw up the deed for a new construction project?
As soon as construction begins, it is already possible to formalize this deed. However, the party responsible (whether an individual or a company) may choose to wait until construction is complete to do so.
So we distinguish between two different procedures, depending on when they are carried out.
Deed of Declaration of New Construction
If the construction project is currently underway and has not been completed, we will need to gather the following documentation in order to finalize the deed:
- A certificate of compliance that includes administrative authorization: to obtain this, the relevant city council must issue a permit for the construction work, and the certificate must include all the information necessary to identify the location of the property where construction is taking place.
- A certificate attesting that the construction project conforms to its description: this must be drafted and signed by a qualified professional.
- Certificate of Completion: This document must be submitted once the construction work is complete. It is drafted and signed by the construction project manager upon completion to certify that the work has been carried out in accordance with the plans and municipal permits.
Deed of Declaration of Completion of New Construction
Once the construction project is considered complete, and after all prior legal requirements have also been met, the following documents must be submitted to obtain the aforementioned deed:
- Title deed for the parcel of land/construction project.
- Administrative authorization license issued by the City Council.
- Certification issued by a qualified professional, such as an architect or engineer.
- First-time occupancy permit or prior notice thereof.
- Certificate of Occupancy.
- Deed of Horizontal Division ( if applicable).
- Energy Efficiency Certificate.
- Building register for filing with the Land Registry.
- Ten-year insurance for residential buildings that are not self-built.
- Coordinates ( according to the UTM system) of the property’s geographic location.
What happens if the building is an “older” new construction and does not yet have a deed?
In some cases, a building may have been in existence for several years but may not appear as registered in the Property Registry. If this is the case and the time that has elapsed from its construction to the date of declaration exceeds the time required for any administrative action to declare it illegal, it will be possible to process the deed.
To do so, you will need to provide:
- The administrative authorization license issued by the City Council.
- The certificate issued by a qualified technician.
- A notarial deed describing the property or a cadastral certificate that includes a descriptive and graphic representation.
And once it is ready, the notary will draw up the deed, which will include all of this documentation, a description of the property, and its value. The owner will determine the value at his or her discretion, although it is advisable that it not be less than the property’s assessed value.
Why is the notary a key figure in this process?
Following the amendment to the Land Law of 2011, the notary’s role in drafting the deed for new construction has become even more important, if that’s possible. Previously, it was possible to purchase a home that included its corresponding deed for new construction, but this did not guarantee that it had all the necessary administrative permits to carry out the construction in accordance with the law.
However, notaries and property registrars are now required to verify all documentation to ensure that the property is fully legal and complies with the requirements set by the government. That is why these professionals play a key role in ensuring the deed is fully valid and in providing legal guarantees.
How much does a deed for a new construction property cost?
There is no specific figure to answer this question, because the cost of this procedure varies and depends on several factors, such as:
- The notary fees for the notary handling the paperwork.
- The Stamp Tax (AJD). This is the tax levied on the formalization of these acts in public deeds, and thus includes notarial documents such as the deed for a new construction project. Typically, the general rate applied ranges from 0.5% to 1.5% of the mortgage liability and depends on the Autonomous Community in which the new construction is located.
- Registration fees for the deed of a new construction project with the Land Registry.
In total, when all these costs are added up, the total out-of-pocket expense can amount to(at least) 3% of the property’s appraised value.
Find your new-construction home at CULMIA
That covers everything you need to know to get the title deed for your new home. And if you haven’t found the right one yet, don’t forget to visit our developments to find the one that best suits your needs.
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