Some ideas, the right of superficies, and fractional ownership.

According to the civil code the definition of PROPERTY is the right to enjoy, and to dispose of something, without any limitations other than those established by law.

From a constitutional point of view, this right should not be seen from the sole consideration of the property owner, but of its social function, which is not so much a limit to property as an integral part of the right.

In the Spanish real estate world, we have not been very innovative when it comes to PROPERTY. We continue with the rather ancient idea that either we are 100% owner, the freehold that implies owning everything up to heaven and hell of a property, or we don’t feel comfortable with the situation. We are owners by nature, and we like things to be ours.

Are we ready to re-think the definition of ownership?

At Lajares Law Offices we like to learn from the ideas and experiences of the very international public visiting our island, and we do listen to experts who push us to re-think the traditional vision of ownership, where a property only belongs to one specific person. If we wish to solve a current problem that we are facing, which is the lack of housing, we might be obliged to start the discussion. Another argument rising is that we should look for ways to avoid that too much land gets consumed.

Fractional ownership.

There are companies that are betting on selling fractions of a property, preferably holiday homes, which could be of particular interest to us on the island of Fuerteventura, in which although you acquire the property, you do so in a percentage between 15-35% that assigns you an exclusive and exclusive use of the property over the rest of the co-owners.

An algorithm regulates the assigned uses and the time of use, with a legal coverage that we have been able to study is excellent and is endorsed by the major prestigious law firms in Spain. On the one hand, this can prevent non-resident properties from remaining empty and, on the other hand, those who buy a fraction of the land will enjoy it themselves and not tourists, so that a certain tension in the tourist load capacity and the existence of holiday homes can be reduced.

The right of superficies.

On the other hand, there is a lot of undeveloped land lying fallow. Owners do not want to sell it at a low price, and possible buyers do not want to buy it at a high price. And there is a lot of public land.

In these cases, the right of superficies can solve many problems, either for the final buyer or for developers who may be interested in building to rent and who benefit from avoiding a significant cost in the acquisition of the land.

The right of surface, like the Leasehold of the Anglo-Saxon world, allows a person to be the owner for a specific period, after which the built-up area returns to the ownership of the owner of the land.

And within the necessary freedom of pacts, to agree an operation that satisfies the parties, convincing the banks to make this credit right mortgageable and the administrations to authorise others to do so on public land with the benefit that what has been built will one day be public again.

Because we law PROPERTY, and we law you.