Certificates of Energy Efficiency for Buildings in Spain

Certification of the Energy Efficiency of Buildings in Spain

Purpose and Basic Procedure

In 2013 came into force the Spanish Royal Decree 235/2013, approving the Basic Procedure for the certification of the energy efficiency of buildings. This Royal Decree partially transposes the European Directive 2010/31/EU, recasting the Spanish Royal Decree 47/2007. The Royal Decree 235/2013 does not set the minimum requirements for energy efficiency, since the definition of such requirements must be made by the Spanish Technical Building Code (CTE), but establishes the obligation to make available to buyers or users of buildings a Certificate of Energy Efficiency that must include:

• accurate information about the energy efficiency of the building
• reference values, ​​such as minimum energy efficiency requirements.

Purpose of the Energy Efficiency Certificate

The purpose of the Certificate is to provide to the owners or tenants of all or part of the building the opportunity to compare and evaluate its energy efficiency. It is intended that such evaluation and comparison will promote the development of buildings with high energy efficiency, as well as the investment in energy savings. In addition, the information provided by the certificates, about CO2 emissions caused by the use of energy by emitting sources in the residential sector, will allow the adoption of future measures in order to reduce emissions and improve the energy rating of  the Spanish buildings.

The Basic Procedure

The Spanish Royal Decree 235/2013 establishes the Basic Procedure to be followed by the methodology for the calculation of the energy efficiency rating, considering:

• which factors have more incidence in the energy consumption
• which technical and administrative conditions must affect the certification of the energy efficiency of buildings.

Almost Zero Energy Consumption

The European Directive 2010/31 /EU establishes the dates from which all buildings to be constructed in Europe will have to be featured by an “Almost Zero Energy Consumption”. These dates are:

• for public buildings, on 31 December 2018
• for private buildings, on 31 December 2020.

In Spain, the Technical Building Code will have to set the required standards affecting the buildings in order they can be considered “Almost Zero Energy Consumption”, when the time comes.

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Technical Inspection of Buildings in Spain

Technical Inspection of Buildings in Spanish Royal Decree 8/2011

Obligation, Requirements, Authority, Effectiveness and Justification

On July 2012 came into force the provisions in Article 21 of the Spanish Royal Decree 8/2011. That article refers to the mandatory Technical Inspection of Buildings in Spain.

The Obligation of the ‘ITE’ in Spain

In Spanish, ‘ITE’ is an acronym for ‘Inspección Técnica de Edificios’ (Technical Inspection of Buildings). Spanish Royal Decree 8/2011 stipulates that all buildings whose age exceeds fifty years (unless regional regulations prescribe other age) and whose intended use is preferably residential, must be subject to regular Technical Inspections, provided they are located in the following municipalities or zones:

• municipalities with more than 25,000 inhabitants (unless regional regulations prescribe other standards)
• municipalities where Administrations define specific zones subject to this practice
• municipalities where regional regulations provide the application of this practice, even if they don’t have specific zones defined.

All required buildings should have received their first Technical Inspection before 2015.

‘ITE’ Requirements in Spain

The regular Technical Inspection should be applied depending on the age of the buildings, and should be intended to ensure their good condition. Each Technical Inspection must be able to:

• assess the adequacy of the property to all legally required conditions of safety, health, accessibility and aesthetics
• determine the conservation works necessary to maintain the property in a legally enforceable condition.

Authority for the Regulation of the ‘ITE’ in Spain

The Autonomous Communities should regulate the method, timing and conditions under which the Technical Inspections of Buildings must be carried out. All regulations imposed by municipalities can only be developed within the framework of national and regional standards.

‘ITE’ of Real Estate Complexes

If a Technical Inspection refers to an entire building or a building complex, its effectiveness must be extended to every shop, office, dwelling or unit that belongs to it.

Justification of the Legal Conservation Duty

If a Technical Inspection report states some deficiencies in the building, the report itself will not be able to justify the compliance with the legal duty of conservation. Such justification may only be enforced after the certification of the effective performance of the conservation works required to recover the legally enforceable condition of the building.

Scope of the Valuation Methods in Spain (II)

Scope of the Different Methods for the Valuation of Properties in Spain (II)

Spanish Order ECO/805/2003

The rules established by Spanish Order ECO/805/2003 for the valuation of  real estate apply whenever the appraised value is used for any of the following purposes:

• mortgage warranties for loans that are or will be an integral part of the portfolio issued by the kind of entities described in the R. D. 685/1982, developing aspects of the Law 2/1981, about regulation of the Mortgage Market in Spain
• determination of a fair value for the purposes of the registration and second valuation standard in the Accountability Plan of insurance and reinsurance companies (R.D. 1317/2008), and determination of the valuation of assets for the purposes of the Law 20/2015, about management and supervision of insurance and reinsurance companies in Spain
• valuation of the assets of the real estate collective investment institutions regulated by the Spanish Royal Decree 1309/2005, approving the Regulation of the Law 35/2003, about Collective Investment Institutions in Spain
• valuation of the property assets of Pension Funds (R.D. 304/2004, approving the Pension Fund Regulation in Spain).

If the purpose of the valuation is among those listed above, the assessment can be made by the following technical methods:

• Method of the Cost: for the valuation of all types of buildings and building elements, whether in project phase, under construction, already finished or during a rehabilitation process
• Method of Comparison: for the valuation of all types of properties, provided that the requirements set out in Article 21 are met
• Method of Income Update: for the valuation of all kinds of properties susceptible to produce income, provided the requirements set out in Article 25 are met
• Residual Dynamic Method: for the valuation of urban or developable land, built or not, and of buildings in design phase, construction phase or during a rehabilitation process, no matter if the works are paralyzed
• Residual Static Method: for the valuation of plots and buildings during a rehabilitation process where the construction or rehabilitation works are entitled to begin within a period not exceeding one year, and also built plots.

Scope of the Valuation Methods in Spain (I)

Scope of the Different Methods for the Valuation of Properties in Spain (I)

R. D. 1020/1993 and R. D. 1492/2011

The primary purpose of the Spanish Royal Decree 1020/1993, about Valuation Rules and Value Frame for Land and Construction, is the determination of the Cadastral Value of urban properties, whose data constitute the Spanish Urban Real Estate Cadastre. Moreover, the Spanish Law 58/2003, about General Taxes, states that the value of the real estate affected by tax obligations can be checked by the Administration using the values ​​established by the Real Estate Cadastre, by applying the multiplier coefficients determined by competent tax authorities, as established by regulation. For all the above, the technical standards of valuation expressed in Royal Decree 1020/1993 apply for the following purposes:

• determination of the Cadastral Value of any urban real estate
• determination of the tax base in the tax about Property Transfer and Documented Legal Acts
• liquidation of the taxable events of the tax about Successions and Donations.

Spanish Royal Decree 1492/2011

The Spanish Royal Decree 1492/2011, about the Valuation Rules of the Spanish Land Act, applies to the valuation of land, facilities, buildings and constructions, and of rights made in connection therewith, whenever the final purpose is one of the following:

• checking the sharing of benefits and burdens, or other operations required by the implementation of the territorial and urban planning in which the valuation delimits the financial content of powers or duties associated with the right to property, in the absence of agreement among all affected subjects
• determination of fair compensations in expropriations, regardless of the purpose and the laws governing the process
• determination of the amount payable to the owner in cases of forced sale or substitution
• determination of the financial guarantee of a Public Administration.

Illegal Construction Works in Andalusia

Illegal Building Works in Andalusia

Geographical Referencing in Certificates of Antiquity

Geographical Identification in the Certificates of Antiquity for Buildings

Spanish Mortgage Law and the 03/11/2015 Resolution of the D.G.R.N.

On November 2015 the Spanish Law 13/2015, reforming the Mortgage Law came into force. The revised text states that when the construction of buildings of any kind is inscribed in the Property Registry, the portion of land occupied by the building must be identified by its referencing geographical coordinates.

03/11/2015 Resolution of D.G.R.N.

Also on November 2015, the General Directorate of  Registries and Notaries (D.G.R.N.) dedicated a Resolution to the interpretation of certain aspects covered in the reform of the Spanish Mortgage Law. It states that when the inscription of the geographic referencing coordinates that define the portion of land occupied by a building is required, the geographical boundaries and the list of geographical coordinates of the piece of land on which the building is located will also be required.

Geographical Referencing in Certificates of Antiquity

The reform of the Spanish Mortgage Law makes it convenient that Certificates of Antiquity for Buildings now include a section about geographic referencing, identifying:

• the piece of land where the building is located, unless its geographic boundaries have already been registered previously
• the portion of land occupied by the building.

Georeferenced Coordinates of the Cadastral Plot

If the simultaneous registration of the georeferenced coordinates of the cadastral plot is required, such coordinates can be obtained from a Descriptive and Graphic Cadastral Certification, which shall include them as an attachment. They can also be downloaded, in GML format, from the Cadastre website.

Georeferenced Coordinates of the Portion of Land Occupied by the Building

Normally, the architect assigned to draft the Certificate of Antiquity will have to identify the portion (or portions) of land occupied by the building subject to inscription in the Property Registry, for which he will need to develop an Alternative Graphical Georeferenced Representation. The content and the computer format for such representation have been established by resolutions of the D.G.R.N. and the General Directorate of Cadastre. The file format must be INSPIRE GML, and the information included should be similar to the one contained in the sample file provided by the Cadastre website, which can be downloaded via the following link: http://www.catastro.minhap.es/documentos/formatos_intercambio/BU%20ejemplo%20explicativo.zip.

Rules for the Valuation of Properties According ECO/805/2003 (VII)

Valuation Rules According ECO/805/2003 (VII)

General Warnings

According Spanish ECO/805/2003, we find a ‘warning case’ whenever we have doubts about any of the data used in the calculation of the technical values. At a minimum, we should consider the following cases:

• when there is a discrepancy between the physical reality of the property and its description in the Property Registry or the Cadastre, if such discrepancy does not lead to doubt about the identification and do not affect the calculated values
• when the property is not in accordance with the applicable urban planning, unless some conditioning have been stated or it was not possible to verify the system of protection of the architectural heritage
• when the valued property is subject to expropriation or was constructed on the basis of a license or an administrative authorization containing conditions, which if not met, may result in changes to the certified value
• when the valuation has been calculated using different methods than those stated in Spanish Order ECO/805/2003
• when the maximum legal value was calculated in absence of some of the required documents
• when the valuation was calculated in absence of the necessary documents to calculate cash flows
• in rural properties, when the valuation was calculated in absence of the cadastral documentation or the documents describing the operating system
• in the valuation of buildings under construction or rehabilitation for the finished building hypothesis, when the valuation was calculated in absence of a complete set of the Construction Documents already endorsed by the Architects’ Association, or the final certification of the performed work, or the Building Contract, or the Schedule of Construction Costs
• in buildings whose main use is housing, when the valuation was calculated in absence of the document attesting the expedition of the decennial insurance for property damage
• in buildings in horizontal property regime or building elements different than houses or garages, when the valuation was calculated in absence of the statutes of the homeowners, an equivalent document or a Certificate by the community manager, certifying the limitations of use or other circumstances able to affect the value
• when the Cadastral Reference does not exist or can not be known by the means provided in the revised text of the Law on Real Estate Cadastre, or through the Virtual Office of the Cadastre
• in properties located abroad, when the valuation was calculated in the absence of all the documentation that, in accordance with the rules applicable in the country where the property is located, may have some influence on the value of the property.

Rules for the Valuation of Properties According ECO/805/2003 (VI)

Valuation Rules According ECO/805/2003 (VI)

Documents Required for the Valuation of Properties

The calculation of the value requires to previously have all the documents necessary for the complete identification of the property. Among those documents, the following ones should always be included:

• the Registry Certificate attesting both title and charges associated with the property, or any legal equivalent in alternative media
• the Cadastral Document, with all descriptive and graphic information associated with the property, as obtained directly from the Electronic Site of the Cadastre (www1.sedecatastro.gob.es).

Both documents must have been issued within three months prior to the valuation date.

Documentation for Valuations in the Mortgage Market

In the valuation of properties intended to serve as mortgage warranty for loans that are or will be part of the portfolio of mortgage securities issued by institutions, developers and builders, the Registry Certificate can be replaced by any of the following documents:

• original or copy of a Registry Note (‘Nota Simple’, in Spanish), issued within three months prior to the valuation date, at least expressive of ownership, the complete description of the property, the real rights and the limitations of domain
• photocopy of the Registry Book of the property
• photocopy of the Title Deeds
• any document equivalent to the above ones, issued by the Property Registry by the use of telematic procedures.

Documentation for Valuations Outside the Mortgage Market

When the purpose of the valuation is the coverage of the technical provisions of insurance companies, the determination of the assets of the institutions of collective real estate investment, or the determination of the real estate assets owned by pension funds, the inclusion of the Cadastral Document will only be necessary in the following cases:

• prior valuations
• regular valuations of real estate in which changes have occurred that affect the description.

Documentation for the Valuation of Assets of Institutions of Collective Investment

If the purpose of the valuation is to determine the assets of the institutions of real estate collective investment, the Registry Certificate is only required in previous periodic valuations of the properties under construction; in other cases, the Registry Certificate may be replaced by any of the documents considered as valid in the mortgage market.

Rules for the Valuation of Properties According ECO/805/2003 (V)

Valuation Rules According ECO/805/2003 (V)

Statement of the Values. Checks. Land Area. Mortgage Value. Intermediate Valuation.

When valuing a Real Estate in Spain, the values should be stated in a report and, where appropriate, a Certificate of Valuation.

Minimum Checks

The valuation of a property requires to perform all necessary checks to know the characteristics and the actual condition. Among the checks that should be performed, the following ones should always be included:

• physical identification of the property, through its location and visual inspection, checking if its floor area and other characteristics match the description
• identifying all visible servitudes
• conservation status or condition
• occupancy status
• use or exploitation intended for the property
• public protection regime, if it’s about housing
• architectural heritage protection regime
• agreement of the property with all applicable urban planning regulations
• where applicable, availability of right to the valued urban use.

Land Area

In order to calculate the value of a land or a country estate, the area to consider should be checked by the appraiser. If this testing is not feasible, the appraiser should use the lowest value between the Registry Area and the Cadastral Area.

Definition of Mortgage Value (VH)

The Mortgage Value or VH (‘Valor Hipotecario’, in Spanish) is defined as the value of the property as determined by a prudent valuation, taking into account all market conditions, the use at the time of the valuation and any possible alternative uses.

Definition of Intermediate Valuation

The Intermediate Valuation of a construction work is any of the valuations that are issued after the initial valuation and during the construction or rehabilitation process of a building or an element of a building. The Intermediate Valuation reflects the progress of the works and the percentage of work performed, but its issue does not involve the updating of the values ​​contained in the initial valuation.

Time Planning in Feasibility Studies

The Time Schedule in the Feasibility Study

Time Frame Estimation for Real Estate Projects

The Work Program is a scheme that assigns each activity a start date and a completion date. Due to the scarcity of data that is usually inherent in the initial phase of the building project, it is usual that the time schedule is not very detailed, consisting rather in a preliminary plan that will have to be part of the Feasibility Study. The time schedule is performed through four interactive processes:

• definition of activities, which requires the breakdown of the tasks associated with each phase of the real estate project to a level which allows the estimation of the time frame
• arrangement of activities, establishing the sequence based on the dependence between them
• estimation of the time frames, which will depend on the magnitude of the resources used in the performance of each activity
• calculation of the program, usually by applying the Critical Path Method.

Estimation of Time Frames

The PERT (Program Evaluation and Review Technique) prescribes the estimation of three possible durations for each activity:

• the most probable duration
• the pessimistic duration, estimated by considering very unfavorable conditions
• the optimistic duration, estimated by considering very favorable conditions.

The use of these three estimates allows the calculation of a weighted average duration which is the one considered in the study.

Calculation of the Program

The Critical Path Method, commonly used in the timing of projects, consists of following, within the network of activities, all possible paths, adding durations and lags. Thus, it’s possible to estimate the earlier and the later date for the start and the completion of each activity and the entire project. The result of subtracting from the earliest dates the latest ones is called “clearance”. The "total clearance" is the time that an activity can be delayed without affecting the time frame of the project. The Critical Path is the one that provides zero clearance for all activities, so a delay in any of them involves an inevitable delay in the completion date of the project.

Definition of the Final Product in a Feasibility Study

Product Definition in the Feasibility Study

Probabilistic Approach. Selling Prices.

The Feasibility Study of a building project is based on estimates (mainly about time and costs) and assumptions (e.g., evolution of the market). As a result, it can only be considered by way of approximation, subject to an inevitable error margin. Real estate developments are always developed in an environment of uncertainty, so it is necessary to apply a probabilistic approach that considers all risks associated with the project. This approach makes the results provided by the Feasibility Study to be more comprehensive and reliable, but also less precise. The fundamental equation that should condition the Feasibility Study expresses performance as a result of subtracting cost of sales. Performance is deemed acceptable by applying profitability criteria, among which is the comparison with other investments that provide returns with an equivalent risk.

Definition of the Real Estate Product

In real estate developments, product definition is progressive, so from an initial description, the implementation of the successive phases of the project will provide the definitive features and functions. The Feasibility Study must contain an initial definition of the real estate product, which can be complex to the extent that it may be a product composed of multiple partial products. The initial definition process is subjected to conditions, among which are the following:

• contract terms
• the state of offer and demand in the real estate market
• the legal and technical regulations that may result applicable
• economic and financial demands.

Selling Prices in the Feasibility Study

In the initial product definition provisional sales prices should be set. The establishment of the selling prices of the real estate products is a business task that should be based on two essential requirements:

• final prices should be competitive, based on the market situation and based on the marketing strategy
• the income should always cover the estimated costs, within a certain margin of error, considering direct costs plus an appropriate share of indirect costs.

The marketing strategy should be structured in a set of techniques to promote, sell and distribute the final products. Its suitability can allow sales prices slide upward within the range set by the real estate market.

Phases of a Feasibility Study

Phases of a Feasibility Study for a Building Development

Initial Definition, Preliminary Planning and Profit Analysis

Real estate developments are structured in phases that define the life cycle of the building project. Along the life cycle, costs and resources increase progressively until they reach a maximum level and then decrease. Also, the more you advance in the cycle, the probability of success increases and the risks decrease. In large investment projects, the Feasibility Study should be the first phase of the cycle. The approval and acceptance of the Feasibility Study by all parties involved in the development is a prerequisite for the start of any subsequent phases.

Phases of the Feasibility Study

The purpose of the Feasibility Study is to determine the project's profitability and its comparison with other investments with lower risk. Such determination is made by applying certain criteria to monetary flows, which are calculated on the basis of a preliminary planning which, in turn, requires the availability of descriptive data about the final product sought by the building project, structured in an initial definition. Thus, the draft of a feasibility study may be structured into the following phases:

• initial definition of the final product pursued by the building project
• preliminary planning of the project
• profitability analysis.

The Preliminary Planning Phase

The preliminary planning phase includes the following processes:

• time schedule, with the result of a work program
• economic planning, with the results of the budget and the curves of revenues and expenses
• financial planning, which determines project flows from a funding scenario.

In turn, the time schedule of the project includes the following processes:

• defining activities
• estimating a time schedule for every activity
• determining an appropriate order for the implementation of all activities
• calculating the program.

And the economic planning includes the following processes:

• planning of resources
• estimation of costs
• layout of the costs curve.

The Profitability Analysis Phase

The phase of analysis of the building project's profitability includes the following processes:

• applying profitability criteria on the flows obtained in the planning phase
• evaluation of risks impacting on the profitability of the project.

Regularization of Illegal Buildings in Andalusia

Architect Daniel Trujillano
http://www.arquitectotrujillano.com/legalization/home.html
Legalization of Buildings in Andalusia

Rules for the Valuation of Properties According ECO/805/2003 (IV)

Valuation Rules According ECO/805/2003 (IV)

Floor Areas used in the Valuation of a Property

In general, the floor area that must be used in order to calculate the value of a building in Spain is the floor area as checked by the valuer. However, the particular circumstances of a building may require using other floor areas:

• if it's not possible to check the floor area on-site, the area to use will be the lowest between the floor areas considered by the Cadastre and the Property Registry
• if it was possible only to check the Gross Floor Area or the Gross Internal Area without the floor area of the common parts, due to operational difficulties involved in checking all the floor area of the common parts, the area to use will also be the lowest one between the cadastral floor area and registry floor area with common parts, provided that the valuer considers that the proportion between the floor area finally used and the checked one is reasonable
• if the checked floor area of a building exceeds by more than 5 percent to the registry floor area or to the cadastral floor area, the adoption of the checked floor area will require to verify the adequacy to the applicable urban planning regulations
• if the checked floor area of an element of a building exceeds by more than 10 percent to the registry floor area or the cadastral floor area, the adoption of the checked floor area will require to verify the adequacy to the urban planning regulations
• if the building lacks of Statement of New Building entered in the Property Registry, the adoption of the checked floor area will also require to verify the adequacy to the urban planning regulations
• if the floor area of the private outdoor spaces for the exclusive use of the building exceeds by more than 15 percent of the total floor area thereof, the floor area of the outdoor spaces shall be measured separately and valued with a different unit price
• in the valuation of homes subject to public protection, for the purposes of calculating their maximum legal value, the floor area that should be adopted is the one contained in the Certificate of Qualification.

Architect Daniel Trujillano

http://www.arquitectotrujillano.com/valuation/home.html

Valuation Reports for Buildings in Spain

Legalization and Occupation in Andalusia (III)

The Occupation of Legalized Buildings in Andalusia (III)

Occupation of Buildings with Expired Urban Offense and Requiring Adaptadion Works. Occupation of SAFO Buildings in Un-Developable Land.

In Andalusia, when a building expired in terms of the deadline for adopting measures for the protection of the Urban Planning Law requires the performance of works for the adaptation to the intended use, two situations can arise:

• that the building complies with the urban planning regulations, in which case, after obtaining the recognition of the accordance situation, it shall be tacitly recognized as legalized by prescription, at the moment the authorization of the required works gets granted, and at the completion of the works it will proceed to obtain the Occupation or Utilization License
• that the building does not comply with the urban planning regulations (in any case the use must be in accordance with the planning), in which case it will be necessary to obtain the statement of the Situation of Assimilated to Outside Planning (SAFO) before obtaining the authorization of the necessary works, which shall never exceed those required by the strict maintenance of the security, living and sanitation conditions, and at the completion of these works the granting of the Occupation or Utilization License will proceed.

Occupation of Buildings Declared in SAFO and on Un-Developable Land

Andalusian Decree 2/2012, about the regime of the buildings and settlements on un-developable land, states that the buildings declared in Situation of Assimilated to Outside Planning (SAFO), because of their illegality and disagreement with the urban planning, can never obtain an Occupation License, even if the offense has expired. Actually, the only thing preventing from obtaining the Occupation or Utilization License is the disagreement of the building use. However the same document expressly permits that, after obtaining the recognition of the Situation of Assimilated to Outside Planning, buildings may be affected by the intended use thereof, even if this use disagrees with the urban regulations and planning. The declaration of SAFO, along with its permission of use, enables the supplier companies to provide the basic services, and enables the notaries and registrars to make the registration of the building in the Property Registry.

Unlicensed Buildings Constructed Before 1975 on Un-Developable Land

Andalusian Decree 2/2012 provides that all detached buildings built without planning permission on un-developable land and completed before the entry into force of the Land Law of 1975 are entitled to obtain the Occupation or Utilization License, provided that the building use is the original one or is in accordance with the current urban planning regulations.

Occupation of Buildings on Developable Land and Unconsolidated Developed Land

The buildings on Developable Land and Unconsolidated Developed Land can not receive any Occupation or Utilization License, because the Law on Urban Planning of Andalusia (LOUA) states as a prerequisite that the development works should be completed previously.

Architect Daniel Trujillano

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Legalization of Buildings in Andalusia

Rules for the Valuation of Properties According ECO/805/2003 (III)

Valuation Rules According ECO/805/2003 (III)

Market Value and Replacement Value. Checked Area and Computable Area. Comparable Properties. Urban Levels.

The Spanish Order ECO/805/2003 defines the Market Value (VM) as the price at which the property could be sold on the date of the valuation. In determining the Market Value is necessary to consider:

• that there is no prior relationship between seller and buyer
• that neither the seller nor the buyer holds any personal or professional interest in the transaction, excluding those associated with the cause of the contract
• that the public offering to the market occurs through a proper marketing strategy and with no inside information
• that the price of the property is consistent with the public offer and reflects a reasonable estimate relating to market conditions existing at the date of the valuation
• that the price does not include any taxes or marketing expenses.

Definition of Replacement Value (VR)

The Replacement Value (VR) can be gross or net. The Gross Replacement Value (VRB) is the sum of all the investment costs required to build, on the date of valuation, another property with the same characteristics (capacity, use, quality, etc.) but using current technology and materials. The Net Replacement Value (VRN) is the result of deducting from VRB the physical and functional depreciation of the property on the date of the valuation.

Checked Area and Computable Area

The Checked Area is the floor area as measured by the valuer. The Computable Area is the floor area used in the valuation.

Comparable Properties

Comparable properties are those that are considered similar to the property that is being valued, or appropriate to apply the homogenization, because of its location, use, type, size, antiquity, condition or other relevant physical characteristic.

The Urban Levels of the Land

For the purposes of the valuation, Spanish Order ECO/805/2003 classifies the land into two levels:

• level II: non-developable land
• level I: developable and developed land.

Architect Daniel Trujillano

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Valuation Reports for Properties in Spain

Legalization and Occupation in Andalusia (II)

The Occupation of Legalized Buildings in Andalusia (II)

Occupation License for Expired Buildings that do not Require Adaptation Works

The Urban Discipline Regulations in Andalusia (RDUA) provide the documentation needed for obtaining an Occupation or Utilization License for buildings with expired deadline for the adoption of measures to protect the urban legality. If the building with expired deadline does not require the performance of any building works for the adaptation to the intended use, the documentation required for obtaining the Occupation or Utilization License depends on whether the works comply or not with the urban planning regulations.

Prescribed Building Works that Comply with the Urban Planning

If the building works conform to the urban regulations, the document needed for obtaining the Occupation or Utilization License shall be a Descriptive and Graphic Certificate stating:

• the date of completion of the works
• review about the condition of the building and of its installations
• accreditation about the fitness of the property for the contemplated purpose
• cadastral and registry identification (if applicable)
• current urban conditions
• documentation attesting the correct operation of the installations
• where applicable, certification by the supplier companies about the feasibility of the access to all building installations, without the need of new works.

In this case, the granting of the Occupation or Utilization License will involve a simultaneous recognition of legalization by prescription.

Prescribed Building Works that do not Comply with the Urban Planning

If the works do not conform to the urban planning regulations (in any case, the use must be in accordance with the urban planning) the documentation needed for obtaining the Occupation or Utilization License shall be:

• statement of the Situation of Assimilated to Outside Planning (SAFO)
• review about the condition of the building
• description of the operation of the installations, including certification by the supplier companies.

In this case, the granting of the Occupation or Utilization License will involve the simultaneous recognition of the declaration of SAFO.

Architect Daniel Trujillano

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Legalization Documents for Building Works in Andalusia

Rules for the Valuation of Properties According ECO/805/2003 (II)

Valuation Rules According ECO/805/2003 (II)

Valuation Entity. Updating. Rehabilitation. Antiquity.

In Spain, the Valuation Entities are:

• in general, Valuation Companies approved and registered in the Special Registry of the Banco de España
• for valuations aiming at the mortgage warranty of loans that are or will be part of the coverage of mortgage titles issued by institutions, developers and builders described by the Spanish Royal Decree 685/1982, the Valuation Services of loan entities approved and registered in the Special Registry of the Banco de España.

Updating

Updating a valuation is to review a valuation issued by a Valuation Entity before two years from the date of issuance, or three if the purpose of the valuation is to cover the technical provisions of insurance companies required by the Spanish Royal Decree 2486/1998. The updating can modify the warnings, the conditions or any of the values.

Rehabilitation

A building in rehabilitation is a building, or an element of a building, which has started some works that meet the following requirements:

• they are being performed under a building permit
• they are being performed according to a set of Construction Documents endorsed by the Architects' Association
• they affect at least a 50 per cent of the floor area, involving the improvement of the living conditions (replacing, restoring or upgrading constructive elements or installations) or a substantial alteration of the morphology of the building
• the construction cost reaches, at least, a 50 per cent of the gross replacement value of the building, excluding the value of the land.

In the valuation of an entire building in which a partial reform is being performed, the definition of rehabilitation may be applied to the affected part if the works cover, at least, a complete storey.

Antiquity

For the correct interpretation of the Order ECO/805/2003, the antiquity is the number of years between the date of construction or complete rehabilitation of the property and the valuation date.

Architect Daniel Trujillano

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Valuation Reports for Real Estate Properties in Spain

Legalization and Occupation in Andalusia (I)

The Occupation of Legalized Buildings in Andalusia (I)

Legalization Projects and Occupation Licenses

In Andalusia, when the building works finish, whether with a granted building permit or not, upon completion it will be necessary to obtain an administrative approval for the occupancy and/or utilization, bound for the intended use of the building. Such approval will be formalized by an Occupation License if the building use is residential, and by an Utilization License in the case of any other building use.

Occupation or Utilization License for Buildings with a Building Permit

If the building works are performed counting with a granted building permit, the granting of the Occupation or Utilization License will require to verify that the finished works comply with the terms of the building permit, so it will be necessary to submit the following documents:

• a Statement about the Conformity of the works with the Construction Documents
• documents attesting the functionality of the installations
• the Final Performance Certificate, attesting the completion of the works.

If it turns out that the performed works don't comply with the terms of the granted building permit, the granting of the Occupation or Utilization License will require the prior (or simultaneous) legalization of the performed works, or the replacement of the altered physical reality.

Occupation or Utilization License for Buildings without a Building Permit

The legalization of building works performed without a building permit or breaking the conditions of a granted building permit, restores the disturbed legal order, for the sake of its substitute character of the building permit, but it does not provide for itself the licensing of the occupation or utilization, which will have to be the subject of further administrative actions. In fact, the legalization of a building does not even require that the works are completed, contrary to what happens with the occupation. The application of an Occupation or Utilization License is also required for completed buildings recognized in Situation of Assimilated to Outside Planning (SAFO).

Compliance with Urban Planning

The verification of the compliance with the Urban Planning regulations is not an attribution of the Occupation or Utilization License, but obtaining an Occupation or Utilization License for completed parties which are technically and functionally independent of the rest requires that these parties comply with the Urban Planning regulations and that the rest of the building shows no significant disagreements.

Architect Daniel Trujillano

http://www.arquitectotrujillano.com/legalization/home.html

Legalization Projects for Building Works in Andalusia