New Property Law for the Canaries

New Property Law / Ley de Vivienda for the Canaries, published the 11th of July 2014

Following in the footsteps of Andalucia and Navarra, the Canaries now have a new Ley de Vivienda, aiming to guarantee the right to a home to all citizens. The law takes measures to prevent ´desahucios´ where the homeowners have been unable to meet the mortgage payments as a result of unforeseen change in economic situation. Preventing actual forced evacuation and permitting a max three year stay in the property, after the formal ´deshahucio´ has been completed.

Furthermore, the law is trying to prevent speculation on the property market by penalising property developers that not put completed finished properties on the market, waiting for better economic climate. Inspectors will be appointed to check up on empty property, both owned by businesses as by private individuals, and a Registro de Viviendas Deshabitadas will be set up. For private owners a series of incentives will be offered, varying from fiscal incentives to help with intervention of real estate agent, subsidizing of certain insurance policies etc. Both type of owners have the legal obligation to make the property availabe for buyers, but contrary to businesses, private owners will not receive fines, nor will their property be taken from them if they do not comply with this law. Professional property owners, withholding property from the market, suspected of speculation, will be reported, and receive sanctions with the aim of correcting the property market so more families will have access to a home of their own.

For further info, the actual law:

http://www.boe.es/boe/dias/2014/07/11/pdfs/BOE-A-2014-7325.pdf  7325 Ley 2/2014, de 20 de junio, de modificación de la Ley 2/2003, de 30 de enero, de Vivienda de Canarias y de medidas para garantizar el derecho a la vivienda. Published 11th of July, 2014.

Please note: The information provided is based upon our understanding of current legislation. It is not legal advice but is provided freely to enable you to be properly informed. We recommend that if you are considering taking action, you should seek professional advice.