What is an autopromoter?
Do you want to get a mortgage to become a self-developer?
Do you know the steps to get a promotion and build the house of your dreams?
Do you know the advantages and disadvantages of being a self-promoter?
Becoming a self-builder means embarking on the project of building your own home. Becoming a self-promoter in Spain entails a series of legal responsibilities that are important to know and cover, such as the Law on Building Regulations (LOE), the Civil Code, the Law on Occupational Risk Prevention, the General Law on Social Security, the Law on Subcontracting and the Environmental Regulations on Construction Sites, among others.
Self-promotion is an interesting alternative to get the house of our dreams that few people consider. This article summarises the main steps to become a self-promoter in Spain so that you can evaluate this tremendously attractive option. You can become a self-promoter or individual developer and take the reins of the process of building your own home with the architect and builder of your choice, for a tighter budget than buying the same home from a development company. This is also an alternative for people who want to build a sustainable and ecological house that may not be available on the market.
We can help you through the whole process, contact us.
Steps to follow to become a self-promoter in Spain
1. Search for and acquisition of the land or property to be rehabilitated or reconstructed.
Sometimes you will have to demolish an existing building in order to build later. Each case is specific, but in all cases you can act as a self-builder. These are also common cases, for example: the inheritance of a plot of land that has never been built on and where the family does not know that it can be built on.
We can analyse your case and verify in the town planning regulations of the municipality whether it is buildable or not and under what conditions, assessing for example if it is a developable land that will carry urban development charges or an urban land.
Remember that you should never hand over a deposit on a plot of land without verifying in a reliable way that you can build what you have planned to build on it. If it is necessary to purchase the land, we take care of the purchase or exchange contract, its processing and registration.
2. Financing as a self-promoter in Spain
It is essential to have the right financing to bring the project to fruition in the desired timeframe. Our team can help you find and plan the best option. By providing us with the following documentation we can assess what financing options are available:
- Valid DNI or NIE of the applicant and spouse or of the persons who will appear as the holder of the operation.
- Employment contract, and last three pay slips.
- In case of additional income, describe its origin (real estate income, movable income, etc…).
- Fincantability (list of real estate owned)
- Minimum of one year’s employment record.
- Income tax return for the last financial year.
- List of loans and mortgages. Detailing outstanding capital, monthly instalments, maturity and proof of the last payment.
- Deposit contract and simple note of the property to be mortgaged.
- List of entities with which it has accounts open.
- Initial / indicative budget of the promotion project.
3. Hiring an architect and drawing up the architectural project.
One of the great advantages of being a self-promoter is that you have total freedom in choosing the architect you want to work with. It is a key point that the relationship with the professional you have selected is perfectly bound in a service contract that reflects remuneration, time and responsibilities as well as service expectations.
The development of the architectural project is divided into different phases:
- Preliminary study and preliminary project. Phases in which the idea and general characteristics are sketched out and a first budget is obtained.
- Urban development projects, reparcelling, … (where applicable).
- Basic project to obtain the building permit from the local council.
- Execution project that includes the calculations inherent to the installations, structures, etc.
- Health and safety study: whether basic or complete, it is an essential document for any project.
- Specific installation project: useful when the work has special installations, and even when it exceeds certain power figures. This project is usually requested by the Provincial Industry Service of the DGA and is generally drawn up by an industrial engineer rather than an architect.
Once the building project has been completed, it is necessary to obtain the corresponding approval from the Architects’ Association and to obtain the building permit.
There are numerous formalities, such as the Construction Project to guarantee the start of the works, and if you wish to use bank financing, you will need the Declaration of New Work under Construction.
We accompany and inform you during the process and review the contracts with your selected architect and construction company.
4. Contracting the construction company
As with the hiring of an architect, it is essential to select a construction company with experience and proven references and to detail and specify in detail the work to be carried out, the follow-up meetings and the budget. This can be closed or establish a tolerance interval.
It is advisable to visit previous constructions and talk to other clients. Do not be afraid to ask questions, this is the biggest purchase a family can make and it may be the first and only time you will build a house, being able to talk to people who have lived in a building done by the company you want to hire for several years will give you peace of mind and guarantees.
All construction work requires an optional management, represented by an architect and a quantity surveyor (or technical architect) who is in charge of carrying out the detailed technical monitoring of the work.
The quantity surveyor’s fees are similar to 30% of the architect’s fees and our recommendation is that they have a good professional relationship to avoid tensions during the project.
5. Commencement and execution of the work
Once the initial administrative procedures have been completed and the professionals selected, the work can begin.
It is essential to take out a policy covering civil liability for health and safety in the construction industry and to check that the main contractor (construction company) and any subcontractors are in the Register of Accredited Companies (REA) to ensure that they are up to date in key areas such as occupational risk prevention.
As the work progresses, partial payments should be made for work certification. It is important to have a good cash flow forecast and that the financing is well structured to avoid having the work stopped halfway through.
Invoices should be:
- Verified with the architect and quantity surveyor.
- Detailed and broken down.
Once you have made the payment, the project management will give you the construction certificate that will allow you to release the part of the credit that corresponds if there is a mortgage that finances the project.
6. Completion
Before we can enjoy our new home there are a number of important steps to be taken:
- Issue of the final building work certificate, endorsed by the Architects’ Association and the Association of Quantity Surveyors.
- Building Book which contains:
- Initial draft.
- Drawings of the final state of the work, if there have been changes.
- The list of companies involved in the project.
- Copy of the guarantee insurance in the construction of new buildings.
- Provisional reception report.
First Occupancy Licence
An important procedure, especially for possible future operations, is to obtain the licence of first occupation. This is issued by the local town hall where the building is located.
Reception records
The law provides for four types of receptions. Namely: Total and partial reception, express and tacit reception, provisional reception and final reception. It is important to note any defects that may have arisen before the issuance of the final act, we can give you legal support in case there are disputes about defects or faults in the construction.
How to be a successful self-promoter in Spain
Being a self-promoter can allow you to access the home you want for a much lower cost and with the design, materials and structure that suits your needs and budget and become a successful project with great personal satisfaction.
However, poorly managed, without the legal, fiscal and knowledge support of a good partner, it can become an endless project, the result of financial and family tensions.
Don’t hesitate, contact us, tell us your dream and we will help you to make your project run smoothly.
Photo by Callum Hill on Unsplash
