Generalitat Valencia put charges on all properties bought from Banks or Auctions

Generalitat Valencia put charges on all properties bought from Banks or Auctions

Yes, this is correct, if you have purchased a property from a Bank or an Auction and this can be years ago, the Generalitat Valencia has placed charges on these types of properties. Not all towns are affected and you will need to consult your lawyer to know if the town you own a property within the community of Valencia is on the list of affected towns/municipals.

Local municipals to our office affected, Moraira-Teulada and Benissa - Yes, Benitachell - No.

This new law was brought in the 5 June 2020 by Generalitat Valencia is for the expansion of public housing and exercises the rights of preferential acquisitions.

The houses or building acquired by the Generalitat Valencia will be for public housing destined to people in vulnerable situations, or who meet the socioeconomic requirements.

So what does this mean if you own a property you have bought from the bank and now you are selling?

If you have found a buyer for your property, you will find out from your lawyer as from June 2020 you now have a charge on your property from the Generalitat Valencia, and you must complete a formal process to remove this by way of offering your property to Generalitat Valencia to see if they would like to purchase the property at the price you are selling for. Obviously this could unsettle your actual buyer.

This new legislation brought in by Generalitat Valencia would seem completely improper to affect people who have bought a property from the bank say 3 to 7 years ago.. prior to this legislation even existing… at the time the Public Notary stating to them “the property is sold to you absolutely free of charges.. absolutely free".

But the fact is this new legislation now exists and does affect you if you own a property bought from the bank or auction within their list of towns.

How to solve this problem if you are selling a property?

There are 3 forms to be completed, your lawyer can help you with this. These 3 forms signed by buyers and sellers, one of the details mentioned within the forms is the sales price of the property.

These forms accompanied by other documents including sales contracts, and escritura must be presented in-person to an office responsible for this legislation for your town/municipal.

Generalitat Valencia then has 60 days from the day after submission to state whether they would like to purchase your property for the price you are selling it for. If they do not answer within 60 days, after this period you are free to sell. Communication may be possible with the office for an earlier response.

The law is destined more towards companies who have bought entire buildings of flats from the banks or auctions and are transferring multiple units to other companies, and not for individuals selling their homes. But unfortunately, this absurd law now does exist and is one more bureautic hurdle to leap when you are selling your property in Spain.