The importance of the Occupancy Licence

Welcome to another Meridional article, today we are going to talk about the importance of the Licence of First Occupancy. 

Among the documents that must be reviewed when buying or selling a property are the following the Licence of First Occupancy.

It is important to have all the information and tools that are necessary when starting the process.

In this way, we can ensure that the transaction is carried out in the most useful and quickest way possible.

In general, we can define it as the document in which it can be verified and guaranteed that a dwelling has been built or refurbished according to the technical aspects set out in a previously approved execution project.

This basically means that the residence meets all the requirements and safety standards for residential use. Here is the basic information you need to know about it:

Why is it necessary?

Most people wonder whether they need to have or apply for this type of licence to convert a house or flat into tourist, holiday or temporary accommodation. The answer is yes. Below, we explain the reasons why.

• The first is obvious, because of its change of use. In addition, it confirms that a property meets the requirements for habitability. Therefore, both this document and the declaration of commencement of activity are essential to obtain the tourist licence. Without it, you will not be able to legally register your accommodation.

• This is the only way to legalise your construction.

• Essential for contracting water, electricity or gas supplies: companies cannot provide these services if you do not have a Licence of First Occupancy, as they would be supplying illegal housing and are outside the regulations.

• Only with the tourist licence your occupants are guaranteed that the place where they are staying is suitable for their use and that it complies with all the necessary regulations and laws.

• It is not possible to carry out a public deed to the dwelling without This report: therefore, a legal sale and purchase cannot take place without going through this procedure.

• Finally, if you want to use a property for tourism purposes, you will probably have to carry out a few alterations or works that may require the application for this or a similar document.

When do I have to apply for a Licence of Occupancy?

It is compulsory in all newly constructed buildings and dwellings. It is also necessary when we are going to carry out an integral reform or when we start works that change its use or modify something in the home.

The same applies if you want to occupy an old house, office, for commercial use, etc.

According to our current legislation, the licence of first occupation must be applied for in the following cases:

• If you are going to build your house and live in it for the first time.
• In case you have carried out a renovation, which has resulted in an extension or a new change of the space.
• In the event that you have modified a flat, house or building to transform it into an office or business premises.

Below you will find everything you need for your application: 

• NIE of the applicant. 
• Final works certificate. This is the document drawn up by the architect and technical architect of the work when the work is completed and must be endorsed by the corresponding professional association. 
• Act of final acceptance of the work. 
• Telecommunications bulletin with information on the installation of telecommunications services. 
• Report from the supplying companies on the connection system. 
• Building permit. 
• The technical certificates of compliance with fire regulations and electrical installation certificates. 

How and where is this document processed?

All the management and processing of this document is the responsibility of the local councils, each of which establishes its own conditions, procedures and forms. You can apply for it whether you are the developer or the owner of the property.

The steps to follow at the Town Hall are as follows:

• Application for a licence of first occupation.
• Proof of payment of fees.
• Documentation of completion of work.
• Plans of the end of the work or report of modifications (in the case of renovations).
• Qualification of the property, obligatory in subsidised housing (VPO).
• Certificates of electrical, telecommunications or water installations and supplies (necessary both for first occupation licences for dwellings and for the use of a property).

With all of the above, the municipal technicians will examine that the construction conforms to the technical project and that everything is within the current legislation. If any errors or discrepancies are found, a period of time will be set to resolve them. Afterwards, the Town Hall itself will take care of the corresponding procedures.

There is no specific timeframe for applying for this type of permit. It will mostly depend on the workload of the technicians and the protocols of the City Council itself.

Our advice is to apply for the licence of first occupation once the building work has been completed. This way, you will be able to hand in all the documentation without any problems.

If everything is in order, you should normally receive a response within a maximum of three months. If you do not receive information in that time, your application may have been denied due to administrative silence. We advise you to find out what has happened and to take the appropriate measures. 

What does the City Council accredit?

• That the work is fully completed and complies with the building permit granted(Judgments of the Supreme Court of 24 November 1973, 16 July 1992, 14 December 1998, 2 October 1999, 21 July 2001, 8 November 2003 and Art. of Law 8/2012 on housing in Galicia).
• In spite of this, it is usual for this licence to legalise any modifications made to the work that can be legalised in accordance with the applicable urban planning.
• The administration cannot refuse the Licence of First Occupancy due to issues unrelated to its purpose.

What does the City Council deny?

However, can refuse the granting of the licence on the following grounds:

• Failure to comply with the duty to build as stated in the development project or building permit (judgments of the Supreme Court of 29 March 1983, 30 October 1995, 25 March 1998 and 23 June 1998).
• That the building or dwelling complies with the requirements for being for residential use. This is the administrative act that legitimises the use of the construction, granting its owners the acquired right to use it, despite subsequent regulatory modifications. In the case of not having this licence, the closure and closure of the uses being carried out could be ordered. carried out without authorisation, without there being any statute of limitations of any kind. For this reason, case law has consistently held that the use is never time-barred and that, therefore, the action for reinstatement of urban planning legality does not lapse at any time.
• To ensure that what has been built meets the technical conditions of safety, health and public order (Judgments of the Supreme Court of 22 December 1976, 7 February 1984, 27 March 1991, 14 December 1998 and 21 July 2001).
• Allow the building or construction to can connect the supply drinking water, electricity, telecommunications and other community services. In the event that this licence is not held, the local council is obliged to cut off the supply, after hearing the interested party (art. 43 of Law 8/2012 on housing in Galicia).
• Its granting is compulsory and prior to authorising (by notary) and registering (land registrars) the deed of the completed new building (Art. 44 of the Galician Housing Act). This is a guarantee for third party purchasers, so that they can always purchase buildings and properties that have a first occupancy licence. The aim is to prevent bona fide purchasers from buying properties that subsequently have problems of reinstatement of legality with the local council.

How many types of Occupation Licences are there?

There are three types of licence of first occupation:

1. For new buildings.
2. Intended for those that have been substantially modified (a clothing shop that wants to become a dwelling or the other way around).
3. For those who have changed their use (office, housing, etc).

How does it work in different communities?

There are different ways of certifying that the home in which you want to start living meets the minimum habitability requirements. We recommend that you find out about the exceptions and characteristics of each autonomous community. It will not be the same to apply for a Licence of First Occupancy on the Costa del Sol as it is in Madrid.

Other issues you should also be aware of:

Do not confuse Licence of First Occupancy with Certificates of Occupancy.

One of the biggest mistakes is that people get confused because they look alike, but they are not the same. The cédula de habitabilidad is only a certificate that the building or home is habitable. And it is usually requested when you register the basic supplies or when you rent or sell.

But this would not mean that we would have electricity, water, gas, etc., supply. Nor would we be able to sell or buy a property that does not have it, since it is one of the requirements that, as we have said before, guarantees the acquisition of such a property.

Is it a mandatory document?

This is the only way of certifying the construction of a residential building for first-time use and/or integral rehabilitation, referring to a previous building permit and is necessary for procedures prior to the deed of the dwelling (signing of the final works certificate, contracting of supplies, etc.).

Finally, we would like to thank you for taking the time to read our article on the Licence of First Occupancy. We hope you found it helpful. What did you think of the information provided?