Renovation & construction
Buying a flat with illegal alterations: what the buyer risks
Alterations made without a permit do not go away when a flat is sold: the new owner inherits both the mismatch with the records and the duty to legalise it.
Illegal alterations do not disappear when a flat changes hands. If the previous owner altered the flat without the required municipal permit, the new owner takes on a physical mismatch between the property as registered and the property as it actually is. With it, the buyer may also take on the obligation, should the council demand it, to legalise the changes or restore the property to its original state. That is why discrepancies have to be found before the purchase.
How to spot discrepancies before you buy
The basic method is to compare the cadastral plan (available through the Sede Electrónica del Catastro) and the nota simple registral, the Land Registry extract, with the actual layout you see at the viewing. Typical signs that the flat does not match the official documents:
- the number of rooms is different;
- partition walls have been moved or altered;
- bathrooms have been merged;
- terraces have been glazed in.
Each of these is a reason to put questions to the seller and, if necessary, to bring in a technical expert.
What legalisation costs
The cost depends on how far the property departs from its documents. At best, it means relatively inexpensive technical paperwork drawn up after the fact. At worst, the changes cannot be legalised at all because they breach current planning rules: a terrace glazed in within a protected zone, for example. The council can then order the owner to remove them at the owner's expense.
How to factor this into price negotiations
A discrepancy that comes to light is a legitimate reason to renegotiate the price or walk away from the deal at the arras stage. This works if a due diligence condition has been written into the contract in advance. The overall checking process is set out in our due diligence checklist, and dealing with the consequences is covered in our legal due diligence section.
Questions and answers
Does the seller have to disclose illegal alterations?
The seller must act in good faith and may not deliberately conceal material defects in the property. But relying solely on the seller's assurances is unwise: finding discrepancies is the job of the buyer and their technical advisers.
Is there a limitation period on the council's right to demand legalisation?
Yes, but it depends on the type of breach and the region. In some cases the council can demand restoration of the status quo even after a long time, so relying on the limitation period to protect you is risky.