The system of planning permission overseas after buying property abroad
Planning permission overseas is something everyone with plans of investing in property abroad should have some knowledge of. The status of a property is something you should ask about when viewing and you should never commit to buying abroad until your lawyer has studied the situation.
Checks for planning permission overseas when you buy abroad
When you are buying abroad you should ask about the planning situation, whether it is a property to renovate or piece of land on which to construct a new-build which you are buying. When you are viewing a property abroad, find out whether further work or restoration is likely to be permitted.
Although most properties have already been zoned the process of obtaining planning permission overseas may still take several months. Delays in obtaining permission in Spain are common and if the process was complete within six months, for either a new-build or renovation, you should consider yourself lucky.
Written permission for property abroad must be obtained from the town hall in France, a lengthy process which may send you over budget when buying abroad. The ownership of land by foreigners has only just been permitted in certain areas of Dubai and so new-build projects are not possible.
Your lawyer should investigate this further and discover what planning permission overseas is likely to be granted. He or she should also insert get-out clauses into contracts to allow you to walk away from a property abroad if the permission you are seeking is not granted.
Buying abroad – variations in receiving planning permission overseas
It is relatively easy to obtain planning permission overseas in some areas but impossible in others. In general terms, all property abroad is designated as being part of a designated planning zone. The rules regarding this zone detail what work can be carried out on properties within it and you should find this out before buying abroad.
As you would expect, the ease of obtaining planning permission overseas depends upon the size and nature of the project and its environmental impact. It may be necessary to change the designated use of a property abroad, from commercial to residential for example.
Planning permission overseas is very often held up by red tape. For this reason, you should enter into the application process as soon as possible – before you have even completed on the buying abroad.
Phrases to watch out for when applying for planning permission overseas
- Land grab – This is particularly relevant to residents of the Valencia province in Spain. Check the local authority has no power to seize your property abroad without compensation at a later date.
- Right of way – Check whether there are rights of passages or paths through your land, historic or otherwise.
Thorough checking is your main defence against problems with planning permission overseas. When you buy property abroad ensure your lawyer checks out the situation with regards to local planning legislation and begin the process early on in the process of buying abroad.
