Declaración Responsable – Licencia de Ocupación – Cédula de Habitabillidad- Comunidad Valenciana

New Occupancy Regulation in the Valencian Community (2021 Reform)

 

Overview: Accelerating the Sale and Use of New Buildings

The Occupancy License (Licencia de Ocupación), also known as the Certificate of Habitation or Certificate of Conformity, is a document that authorizes the legal occupation of a newly built or refurbished home. It certifies that the property complies with urban and construction regulations and is fit for residential use.

Water and electricity companies frequently require this document to activate or transfer service contracts.

There are two main types:

  • First Occupation License (for new constructions or major renovations)
  • Second Occupation License (for older homes or transfer of services)

 

First Occupation License (New Buildings)

This license is:

  • Issued once the construction or renovation is complete.
  • Applicable to new homes or significant structural reforms (roof, façade, extensions, etc.).

 

Process:

  1. Promoter submits required documentation to the Town Hall.
  2. City Council reviews and issues the license.

 

Without this license, the property legally cannot be used as a residence.

 

 

Second Occupation License (Resale Properties)

Granted when:

  • The first occupation license has expired.
  • Utilities need to be transferred to a new name.
  • The property never had a first occupation license.

 

This license is essential for legal utility activation and proper documentation in property resale.

 

 

Historical Challenges with Occupancy Licensing

Traditionally, obtaining a license involved:

  • Request to the Town Hall.
  • Thorough document verification.
  • On-site inspection by municipal technicians.

 

This slow and bureaucratic process delayed the sale and use of new homes, often by months or years.

 

 

The Introduction of the “Responsible Declaration” (Declaración Responsable – DR)

To simplify and expedite the process, many Spanish regions, including the Valencian Community, introduced the Responsible Declaration.

 

What Is the DR?

A document submitted by the builder/promoter certifying:

  • That the works are completed.
  • That the construction complies with the granted building license.

 

This document:

  • Enables immediate occupation and sale.
  • Transfers responsibility from public authorities to the promoter.
  • Is submitted directly to the Town Hall without waiting for inspections.

 

However, it does not eliminate the possibility of later inspections or revocation of the license if false declarations or violations are found.

 

 

Regulatory Change (January 2021 – Valencian Region)

As of early 2021, the Valencian Government issued a regulation granting the Responsible Declaration the same legal effect as the First Occupation License.

 

Key Changes:

  • The DR now acts as a fully valid enabling document to occupy and sell a house.
  • Builders can proceed with sales and utility registration immediately after submitting the DR.
  • Town Halls are no longer required to issue an additional Occupation License.

 

This regulation is binding across the Valencian Community, unless a specific municipality opts to keep using the traditional process.

 

Benefits:

  • Faster sales and registrations.
  • Greater flexibility for developers.
  • Alignment with EU directives on administrative efficiency.

 

 

Risks and Limitations

Our Legal Perspective

The new regulation transfers the guarantee from public authorities to private developers. While this accelerates sales, it may increase risk for buyers:

Scenario:

  • The DR is submitted.
  • The buyer completes the purchase and occupies the house.
  • A later inspection reveals serious building code violations.
  • The Town Hall revokes the license.

 

In this case, the buyer would need to take legal action against the developer, potentially involving long court proceedings.

 

The Valencian Government’s Argument:

  • This system aligns with European Union standards.
  • It aims to create a faster, more efficient real estate process.
  • The shift toward self-regulation is a common feature in other EU countries.

 

 

Final Thoughts

This new framework:

  • Creates opportunities for faster transactions.
  • Emphasizes the importance of due diligence.

 

 

We strongly recommend working with specialized real estate lawyers to:

  • Verify the accuracy of the Responsible Declaration.
  • Assess potential risks in the absence of a formal inspection.

 

Need help with your purchase or sale in the Valencian Community? Contact our office for expert legal advice.

 

 

TLACORP SLP – Real Estate Legal Experts in Spain