Nevado Spring Summer 24

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ENSURING
A SMOOTH START:
THE SIGNIFICANCE OF FIRST
OCCUPATION LICENSES
by Francisco Sánchez & Alex Vallejo Maiz
In the realm of apartment living, a crucial document
stands as the gateway to habitation, the First
Occupation License. This permit, bestowed by the
competent administration, serves as a testament to the
apartment's compliance with all legal urbanistic
requisites. This article delves into the intricacies of this
license, shedding light on its importance in the contexts
of selling, buying, or renting an apartment, and the
potential ramifications of lacking one.
Understanding the First Occupation License
The First Occupation License, a permit processed by the
municipality's Townhall where the apartment is located,
functions as a certification of compliance with national,
regional, and local laws regarding construction or
remodeling. It is imperative for the apartment to meet
all technical requirements from an urbanistic standpoint.
Soliciting the License
Initiating the process, the building company, the
reform-in-charge company, or the individual owner can
request the license. Typically included in the architect
and quantity surveyor's fees, the application is subject
to the Townhall's bylaws, specifying documents such as
the Application Form, Completion Certificate, Building
Book, and proof of fee payment. The outcome could be
favorable or unfavorable; in the latter case, corrections
must be made, and the application resubmitted.
License Importance
The First Occupation License is a prerequisite for any
construction work requiring a positive license from the
Townhall, notably for new buildings, edifications, or
significant rehabilitations. This ensures effective control
over urban planning regulations. The sequential
acquisition of documents involves a building permit,
ensuring compliance with regulations, followed by a
Completion Certificate to validate legal changes to the
initial project. Subsequently, the First Occupation
License and Certificate of Occupancy can be
requested.
Consequences of Lacking a License
Living in an apartment without a First Occupation
License or Certificate of Occupancy is strongly
discouraged due to potential fines and sanctions. Such
a situation poses risks to the safety and health of
residents.
When purchasing an apartment, notaries require this
license for formalizing the acquisition or sale, though its
mandatory status varies by region. Its absence can even
lead to the nullification of a purchase and sale contract.
Banks commonly demand this document for
mortgaging an apartment, alongside the Certificate of
Occupancy, serving as mortgage insurance.
Exceptional Cases
In some instances, apartments can be sold without a
First Occupation License or Certificate of Occupancy,
provided both parties are aware, and the buyer
commits to necessary reforms for habitability.
In conclusion, the First Occupation License is not just a
bureaucratic formality; it is a safeguard for urbanistic
adherence, legal compliance, and the overall well-being of
apartment dwellers. Understanding its implications is vital
for a seamless journey into the realm of apartment living.
Distinguishing between First Occupation License and
Certificate of Occupancy
The First Occupation License and Certificate of
Occupancy, often confused, pertain to property
inhabitability. Both requested during construction, they
serve distinct yet complementary purposes. The License
certifies executed work aligns with project
specifications and adheres to urban planning
regulations. Conversely, the Certificate evaluates if the
dwelling meets habitation prerequisites. Despite
differences, their shared goal is ensuring compliance
with habitability regulations throughout construction.
From project initiation to license acquisition, both
documents play crucial roles in guaranteeing
construction aligns with habitation requirements,
safeguarding property livability.