The law obliges the builder and the promoter of a new building to respond and provide the buyer with a series of guarantees, for the purchased house, as well as for the carried out construction works. Depending on the type of work it should have a guarantee period of one, three or ten years.
Guarantees for construction defects.
During the first year the builder must respond of the damages on the materials that appear as consequence of a poor realization of the construction and which may affect the termination and the finishings, like for example the adjustments on doors and windows which do not close correctly, defects on the pavement or tiles, re-painting, etc.
The builder must respond during the first three years of the damages on the materials caused in the house because of defects, in constructive elements as in facilities, in order that the house can be used at any time in a satisfactory way. Examples of the responsibilities included in this group are: the errors in facilities (electricity, plumbing, heating, air conditioning) and problems with humidity, leaks or condensations which are not caused by a misuse of the owner.
Lastly, the law obliges the builder to respond during a period of ten years of the defects which may appear at the house as a consequence of defects which affect the structural security of the same. These structural damages would be those which could risk the stability of the building, such as: defects in the foundations, shape, walls or other structural elements.
Ten year construction damage cover.
For the cover for the structural damages mentioned on the previous paragraph, the law obliges the promoter of the house to form a ten year construction damage cover of the building, which is obligatory in the case of promoter businesses and a demand in order to proceed to the inscription of the house in the Property Registry.
In the case of particular promoters, these can refuse to form the cover, however they must value the benefit, because refusing does not free the promoter from the responsibility for future buyers of the house during ten years from its construction. This could give rise to, in case any defect in the construction appears, the promoter having to respond for it with its own heritage. If there is any defect in the house, this cover would avoid that the promoter has to solution it with their own means. The cover in this insurance has to be a 100% of the final cost of the execution, materials, including the professional fees.
The process to obtain the ten year damage cover must be started by the promoter or the builder of the house before the works start, when the municipal works license. At this moment the provisional policy or pre-policy with the insurance company is created.
To specify the insurance it is essential that the promoter or builder of the house contracts the services of the Technical Control Organism (OCT) so it supervises the project and the correct execution of the works, submitting the corresponding informs of the course of the constructions works, during is different stages.
Once the construction is finished, accredited by the corresponding certificates, and only if the reports of the OCT are satisfactory, the insurance company will submit the final policy, which will be provided for the Declaration of new building in the notary.
Beginning of the period to compute the guarantees.
The periods for the compute of the guarantees start at the moment of the reception of the work, which will take place for the thirty years after its end, accredited by the Certificate of end of works submitted by the construction management (architect and building engineer).