A property developer is a natural or legal person, whether public or private, acting individually or collectively, who takes the initiative to develop homes for sale. In other words, their main responsibilities include deciding on, planning and financing building works, using either their own resources or third-party funding.
Obligations of the property developer
This definition and the responsibilities of the property developer are set out in Article 9, paragraph 1, of the Building Regulation Act, Law 38/1999 of 5 November 1999, and are specified below:
- To hold title to the plot, or a right over it, that entitles them to build on it.
- They are responsible for commissioning the project and providing the designer with the necessary prior information, as well as authorising any changes made to the project.
- They must arrange for and obtain the licences and authorisations required for construction and contract the execution of the project.
- The property developer is civilly liable (without prejudice to any liability that may correspond to the other parties involved in the building process) for execution defects relating to the finishing of the works for a period of one year; for construction faults or defects affecting the habitability of the property for a period of three years; and for defects affecting its structural elements for a period of ten years.
- It is the developer’s responsibility to prepare the Building Logbook and to hand it over to the owner or the owners’ association of the building at the time of completion of the deed.