The ITE (Inspección Técnica de Edificios) is a building audit, mandatory only since 2015 and for buildings over 45 years old, to be carried out every ten years. Since its entry into force, 90,000 inspections have reportedly been conducted in Catalonia.
In this article, the director of the Catalan Housing Agency, Silvia Grau, states: “We lack a culture of rehabilitation.”
Reading this article prompted us to focus on building audits. What consequences can obtaining (or not obtaining) this certificate have from the perspective of a real estate buyer in Spain?
In France, in order to sell a property, the seller must provide the buyer with no fewer than 10 diagnostics grouped in the DDT (technical diagnostics file)1. In Spain, only the energy certificate and the ITE certificate are mandatory.
What does the ITE report consist of?
It is an inspection that the co-owners of the building must arrange in order to ensure the safety and compliance of their property with current regulations.
The ITE involves a thorough examination of various characteristics of the building. These include structural elements such as walls, plumbing, electrical and gas installations, as well as the condition of façades and roofs.
The ultimate objective is to prevent any danger to residents or damage to third parties. Infine, the co-ownership is responsible for this safety and must also take out insurance for the building.
Following this inspection, the architect must draft the ITE report. This document must identify any deficiencies and determine their severity.
This report will therefore make it possible to identify the work required to remedy the deficiencies and ensure the rehabilitation and preservation of the building.
The different types of compliance certificates following the ITE
After submitting the ITE report to the Catalan Housing Agency, it is necessary to apply for the Certificate of Compliance. The validity period of this certificate depends on the defects identified. It may also include preventive measures.
- Minor defects allow for a Certificate of Compliance valid for 10 years.
- Significant defects lead to a provisional certificate valid for 6 years, which must nevertheless be reviewed every two years to prevent major risks.
- For serious or very serious defects, a certificate is issued with preventive measures, valid for 3 years with annual reviews.
Note : Failure to comply with deadlines for carrying out rehabilitation work may result in fines ranging from €9,000 to €90,000.
Can I purchase a property without an ITE?
In principle, the ITE is mandatory, as the notary in Spain must certify at the time of sale whether the report and certificate have been provided. However, the notary cannot refuse to execute the notarized deed of sale solely on the grounds that the ITE has not been carried out.
The seller may propose to the buyer to provide only the ITE report on the day of the sale, which may indicate deficiencies to be corrected, without presenting the certificate of compliance, since the rehabilitation work has not been carried out.
For example, the report may mention façade works to be approved at a general meeting after the acquisition of the property. The risk associated with such works would then fall on the buyer if they agree to release the seller from the obligation to provide the certificate of compliance.
This is why it is always recommended to consult a technical architect in order to obtain a professional opinion before signing a preliminary agreement.
Warning : There is an option to allow the sale without a certificate of compliance: an exemption clause, whereby the buyer releases the seller from this obligation. This may serve as a negotiation argument on the price for the buyer.
However, this should be handled with caution : risks to safety, administrative penalties in the event of a municipal inspection, refusal of financing, or liability of the co-ownership in the event of an accident, as well as possible refusal of insurance coverage.
Is it possible to purchase a property with an unfavorable ITE?
Yes, it is possible to purchase a property with an unfavorable certificate. Therefore, the buyer must remain vigilant during the acquisition process and take into account the outcome of the ITE in order to assess the associated potential costs. It cannot be stressed enough that consulting a technical architect is essential for any acquisition.
Indeed, the cost of the work required to obtain the certificate of compliance following the ITE audit is borne by the owner. This means that the new owner will have to assume the cost of compliance works if they have not been carried out prior to the sale.
How can I ensure, as a buyer, that my future property has a favorable ITE report?
It should be recalled that, in principle, the seller is required to present the latest ITE report and the corresponding certificate of compliance. You should therefore carefully review the conclusion of the ITE report and the date of the inspection in order to avoid any unpleasant surprises.
You may also contact the property manager of the co-ownership and inquire about your future obligations: outstanding charges, works to be carried out, necessary repairs… in order to be informed and anticipate future expenses.
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