Spanish houses and the Decenal insurance policy
Do you have a Decenal insurance policy on your new (under 10 years old) property in Spain? Of course, this may seem a silly question – as all new Spanish houses should have a 10 year ‘Builder’s Guarantee’ (Decenal Insurance policy). Indeed, a Decenal insurance policy (similar to a NHBC insurance policy in the UK) is obligatory, by Spanish law, for any new property constructed by a builder in Spain. However, there is a loophole in the Spanish law relating to the imposition of Decenal policies for new build Spanish properties – that (whilst, perhaps, sensible for people building a house for their own long term use) has been taken advantage of by unscrupulous builders and colluding conveyancing lawyers. The loophole states that a self-build project (auto-promoción) in Spain does not have to have a Decenal policy. This is when the owner of the property chooses to be designated as the builder…
