The Spanish property market remains a popular choice for foreign buyers, particularly when it comes to new-build property. Modern construction methods, up-to-date building standards and a clear legal framework lead many buyers to deliberately opt for newly built homes.
For Belgian buyers, this legal framework may sound familiar. In Belgium, new-build property is also subject to statutory protection. Under, among others, the Breyne Act, contractors and sellers may be held liable for a period of ten years for serious defects affecting the stability or watertightness of a building after completion.
Spain provides a comparable system of statutory protection, albeit with clearly defined warranty periods that apply after the completion of the construction works. These are laid down in the Ley de Ordenación de la Edificación (LOE – Act 38/1999) and form an integral part of the legal framework governing new-build property in Spain.
In this article, we explain how these statutory warranties are structured, when the relevant periods begin and how liability for defects is determined.
1. The Spanish Building Act (LOE)
The Ley de Ordenación de la Edificación (LOE) regulates the responsibilities and liability of the parties involved in the construction process. These include, among others:
- the developer (promotor),
- the contractor,
- the architect,
- the technical architect (aparejador),
- and other technical professionals.
The Act applies to buildings intended for residential use and establishes statutory liability periods for material damage caused by construction defects. These periods are mandatory and cannot be contractually excluded or limited.
2. The three statutory warranty periods
The LOE distinguishes three categories of defects. The nature and seriousness of the defect determine which warranty period applies.
a. Ten years – structural defects
The ten-year period applies to defects that affect the mechanical strength and structural stability of the building. This includes, among others, damage to foundations, load-bearing walls, beams, columns and other structural elements.
For these risks, Spanish law provides a system under which, in many cases, a ten-year insurance policy (seguro decenal) is taken out by the developer. Not every serious issue automatically qualifies as a structural defect; each case must be assessed on the basis of technical and legal criteria.
b. Three years – defects affecting habitability
The three-year period applies to defects that seriously impair the normal use of the property, without necessarily compromising its structural safety.
- water infiltration and moisture problems,
- leakages,
- defects in electrical, plumbing or heating installations,
- problems with thermal or acoustic insulation,
- ventilation issues affecting living comfort.
Whether a specific issue falls within this category depends on its severity and its actual impact on the habitability of the property.
c. One year – finishing defects
Finishing defects are subject to a one-year warranty period. These concern visible shortcomings in execution or finishing, such as poor paintwork, loose tiles or defects in doors and windows.
Normal wear and tear or damage caused by use is not covered by this warranty.
3. When do the warranty periods start?
The warranty periods do not start on the date of purchase, but on the date of completion of the construction works. Legally, this is recorded in the acta de recepción, whereby the works are formally accepted, with or without reservations.
If a newly built property is purchased after completion, part of the warranty periods may already have elapsed. In the event of resale within these periods, the remaining rights generally transfer to the new owner.
4. Liability of the parties involved
The LOE is based on the principle that liability is primarily determined according to the specific role and responsibility of each party involved. Where the cause of the defect cannot be clearly attributed to a single party, joint and several liability may apply.
In any event, the developer may be held liable towards the buyer for material damage resulting from construction defects, as provided by law.
5. Limitation periods and timely action
In addition to the warranty periods, a limitation period of two years applies for initiating legal action. This period starts from the moment the damage occurs or becomes apparent.
Timely notification and proper documentation are therefore essential.
6. Practical points for buyers
- Keep all documents relating to completion, warranties and insurance.
- Report any defects as soon as possible and preferably in writing.
- Seek technical and legal advice in case of doubt.
- When purchasing recent new-build property, verify which warranty periods are already running.
7. Conclusion
Spanish building legislation provides a clear system of statutory protection for new-build property, with warranty periods of one, three and ten years starting from the completion of the works. For Belgian buyers, this concept is broadly comparable to what they may be familiar with at home, although the practical application differs.
A clear understanding of these warranty periods and the related documentation is essential when purchasing or reselling a new-build property. As the assessment of defects is often technically and legally complex, professional guidance remains advisable.
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Our team supports clients from A to Z when purchasing property in Spain. With offices in Antwerp, Knokke, Moraira and Tenerife, we stay close to our clients, both in Belgium and in Spain.
Our Dutch-speaking area managers live and work locally, know the market inside out and closely follow day-to-day developments. They guide you step by step, so you can make the right choice for your property under the Spanish sun with confidence and clarity.