Law On Real Estate Transfers, 15-12-2000

Original Language Title: Llei sobre transmissions patrimonials immobiliàries, de 15-12-2000

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$20 per month, or Get a Day Pass for only USD$4.99.
Law on property transfers given that the General Council in its session of 15 December 2000 approved the following: law on real estate property transfer preamble the evolution of the economic sector of the construction, as an element of inductor and induced levels of the Andorran economy, has been closely linked during the past forty years, both in the growth rate of the country as to the way in which it has been carried out.

The economic development and integration of Andorra in the context of the international financial flow, as well as the roots of tourism you choose our country as a regular destination, have prompted the buying of land, flats or houses, both on the part of national and foreign, with the purpose of obtaining a real estate law as well as a safe and profitable investment. The level of demand for houses has induced increases in demand in other sectors which has had a favourable impact.

With regard to foreign investments, it must be borne in mind, however, the restrictions and limitations that has always imposed the regulations. The restrictive character of the regulation, which has its antecedents in the decrees of the Council General of the June 11, 1939, in the rear of the 28 May 1942, November 11, 1949, and the agreement of 31 March 1953, falsehood stems currently from Decree of the General Council dated 23 June 1955 (concerning the need to obtain prior authorization from the General Council for the alien who wishes to acquire a site designed in building, and to the limitation of the extent of the plot to a thousand square metres as maximum), of the Decree of the General Council of 8 July 1965 (with regard to the limitation of acquisition by purchasing a single floor or apartment on the part of foreigners, to the need for prior authorization of the General Council, and to the requirement of prior approval by the General Council of the regulations of the internal condominium with horizontal property because the building can be sold in plots of the independent), cubic Regulations of July 12, 1966, of the Decree of 28 June 1968 and of the agreement of June 26, 1970.

The buyers (national and foreign) have used widely and lavishly in practice the private contract (promises of sale or other forms of contract allowed by the Andorran civil law), sometimes in their genuine function of preparatory documents for the acquisition of real estate before construction (plan) or during the same construction, but also sometimes improperly , depending on the needs of individuals or buyers promitents buyers.

The practice followed over the years has brought in a situation of a certain complexity, confusion and difficulties of understanding. Has been given the case that some foreigners may not escripturar the flats or apartments purchased because the buildings where you will find the real estate units do not meet all of the requirements necessary construction. Doubts have emerged about the effects of the lack of prior administrative authorisation and also about the effectiveness or value of certain contractual forms. The courts have had to pronounce on this subject during the last few years and have done by means of resolutions is not always uniform, bearing in mind the different situations.

All this leads to the need and convenience that the situation be clarified and regulated by law, by the legislative power.

For this purpose it is necessary to take into account that the requirement of prior administrative authorisation for the acquisition of foreign real estate has a purpose of public control of foreign investment in the Principality; so that you don't have to mingle with the need that it complies with the rules of construction and urban development, to which we must ensure through other legal instruments that do comply with builders and developers, without which they can transfer the consequences of failure to comply to a certain sector of crime. Therefore establishes that, while you can't deny the authorization even though the building may not be complying with the relevant regulations or sold by cubic plots, investment permission does not imply approval of the governing construction, occupancy, or the regulation of the property or the private drive to refer.

The qüestionabilitat of the legality of the current situation could have important repercussions of legal character with regard to the indigenous law, and could result in real situations of injustice and a bad image regarding the international prestige of Andorra, which has always been distinguished by the reliability, validity and trust in transactions carried out in accordance with the civil law According to the principles of autonomy of the will and of individual freedom. Fully valid principles and that the General Council believes that it must maintain and strengthen these principles because it lies much of the base and of the foundations of our law and of civil freedom, and have not undergone variation with the approval of the Constitution, the attainment of the status of the rule of law and the full entry in the international concert of Nations.

The civil agreement, confidentiality, freedom and the autonomy of the will are values well settled in the Andorran community and highly appreciated and valued today at an international level. The Andorran legislation may not allow that to settle doubts concerning the value, effectiveness and recognition of those traditional values today in Andorra, set in relation to the modern principles of legal certainty, protection of legitimate and trusted third parties.

That's why this law should serve to regulate the real estate acquisitions contracted in good faith. Even if the purchaser carries because of a previous transmitter that was violating the administrative regulations; because it is considered a priority the protection of contractual good faith on the acquirer and the consolidation of a situation of fact disseminated widely in the Principality, while avoiding any alarm.

By virtue of the background and reasoning of exposed the General Council approves the present law.

Article 1 in accordance with civil law in force in the Principality, the contracts of transfer of the ownership of real property are valid and produce effects irrespective of the way in which it is established, in public or private document, instrument, provided they meet the essential elements of the business and are not contrary to a rule


of imperative or prohibitive character.

Article 2 provided that, in accordance with the specific regulations in force the aliens require prior burdensome administrative authorization for the acquisition of real property, such authorization is requirement of validity of the acquisition.

It is not necessary that administrative authorisation in the case of acquisitions to live free, or between cause of death.

Article 3 3.1. The Government granted the mandatory authorization provided, both by reason of the person of the acquirer as by reason of the property purchase, it complies with the current regulations concerning foreign investment in the Principality of Andorra.

Consequently, without prejudice to the responsibilities of the promoter, the Government may not deny such permission claiming that the building of what is part of the real estate unit to purchase has not obtained the authorization to be sold in cubic or lack of independent plots prior approval of the regulation of internal or regulatory statutes of the horizontal property regime.

3.2. In any case, this administrative authorization is strictly a permit of investment and, therefore, does not implies approval of the new construction project, or the approval of the terms and conditions of occupancy of the building, the planning or the private independent unit.

Article 4 4.1. The person who does not have title purchasing public, you can get a notarized statement by which the notary deems justified the notoriety of the facts that could lead to the acquisition of property through a record take in accordance with the notarial Regulation.

4.2. To this end, the Summoner must submit: (a) Refund: The private contract related to the acquisition of the property, regardless who is protocol·litzat or not and, in the latter case, regardless that the signatures have been authenticated or not.

Certification issued by the Secretary of the community of owners, with the approval of the Chairman and the signature of the Manager, if any, stating that the interested party has as an owner.

Certificate of registration of the property in favour of the common in the Summoner of the parish where it is based.

Affidavit of the applicant specifying the date you acquired the property and ensuring, under his own responsibility, that it has not sold, recorded or transferred the goods or rights on the property that will belong. If applicable, you must specify the charges or encumbrances on the property you have created.

When requesting to be overseas and as required by the specific regulations, administrative authorization to purchase.

(b) to complete the domain reputation the notary may ask that also present: Proof of payment of the price.

Proof of payments of Community expenditure in the community of owners.

Bills from electricity (FEDA) and/or telephone (STA).

Any other document or statement that the notary may deem convenient.

(c) those interested can also introduce or propose other legitimate tests that are at your fingertips, including the affidavit of the transmitter, witnesses of the acquisition, correspondence between transmitter and purchaser, and any other admissible in law.

4.3. During the five years following the date on which it confers, the notoriety of the domain is not opposable to third parties who prove right.

4.4. The Chamber of Notaries has to give publicity to the result of the notoriety of the domain by means of the publication of an edict in the official bulletin of the Principality of Andorra, at least once a year during the next five years, identifying the real estate unit that has been the subject of the statement of domain and maintaining the anonymity of the Summoner. In the edict has been expressly state the date on which the minutes of notoriety of the domain will be inimpugnable by third parties.

Article 5 5.1. Preparatory are understood all contracts awarded without the mandatory administrative authorization of acquisition, no matter if you are a qualified promise or contract of commitment of transmission as final transmission.

5.2. The fingers contracts are valid and effective as such if you meet the essential requirements of law.

5.3. However, the translatiu effect cannot occur until the promitent buyer has not obtained the administrative authorization corresponding acquisition.

5.4. The lack of obtaining this authorization after a year, or other time limit established by the Covenant, since the obligation to transmit has reported reliably that the acquirer is able to deliver the pledged estate, empowers the bound to convey to declare solved the preparatory contract, with return of any sum paid eventually by way of price.

5.5. In the event of bankruptcy or cessation of payments required to make the transmission before it has been completed, provided that the purchaser has paid in whole or in part the price of future transmission, is in possession of the property and enjoy or you can enjoy the legally relevant administrative authorization, the said purchaser can choose between require judicial administrator the grant in their favor or in favor of a third of the title domain translatiu , or declare solved the preparatory contract; and in this case the acquirer has preference over any creditor of the failed or stopped-except those that enjoy a privilege or mortgage wage credit, to recover the amount paid plus legal interests from the payment, on the product obtained in the auction of the property to reference.

Article 6 In any contract in which they foresee a future onerous acquisition by a foreigner, the transmitter has to inform the purchaser about the current regulations concerning foreign investment, expressed in writing in the same contract the limitations that may exist on the specific capacity of the foreign purchaser.

The absence or defect of this information carries with it the obligation of the transmitter to compensate for damages that eventually arising there from.

As an exception to the transitional provision provided for in article 5, the deadline to declare unilaterally resolved preparatory contracts awarded prior to this law, may not be less than two years to have the obligation to transmit have required reliably the acquirer of its availability in order to formalize the final transmission of the estate committed.

Repealing provision on the entry into force of this law abolishes all legal provisions of equal or lower rank that conflict with its contents.

First final provision


The Government should issue regulations the system of guarantees for developers of buildings that are sold in separate custodial units in order to ensure that buildings conform to construction permits granted by the Administration, both with respect to its spaciousness as their destination.

Second final provision empowers the Government to dictate all the other rules and regulatory provisions that may be necessary for the development and the application of the present law.

Third final provision this law enters into force on the same day it is published in the official bulletin of the Principality of Andorra.

Casa de la Vall, 15 December 2000, Francesc Areny Casal Syndic General Us the co-princes the sancionem and promulguem and let's get the publication in the official bulletin of the Principality of Andorra.

Jacques Chirac Joan Marti Alanis, President of the French Republic the Bishop of Urgell Co-prince of Andorra Co-prince of Andorra

Related Laws