Rights of the Owners during the execution

of the Program of Integrated

Intervention (PAI)

Payment to the Developer in Plots or in Cash

At first, the Developer charges for his activity with building plots, except if the approved PAI establishes the payment in cash. The PAI can decide also that parts of  the payment will be in cash and part in plots.

 But the relations between Developer and Owners can be agreed in a contract freely negotiated, whenever they respect the current Town-planning and the approved PAI. So that the owners could choose, the Developer must notify to them the approval of the Project of Urban Development, together with the necessary information so that the owners could exercise their option and  rights.

Notification to the Owner of their right to choose the way they want to pay.

The recipients of this notification are the registered owners  affected by the Forced Redistribution of Plots (and who not being a registered owners appear in the procedure   proving his owners' condition, even by means of a non registered, but valid, title deed).

The notification must include the documents about the approval of the PAI and the designation of the Developer Agent (Urbanizador), about the approval of the Project of Urban Development, the breakdown of the payment due to the Developer (with indication of the unitary cost of the works of urban development, general expenses, benefit of the Developer, and the Value-added tax),  the appraisal of the land or the appraisal of the building coefficient used to establish the equivalence between the value of the land and the payment in kind to the developer, the legal requisites for the exercise of the option by part of the affected owners, and the indication that the mentioned amounts will be checked again when are known the exact amounts of the indemnifications by extinction, demolition, cessation or transfer of the goods, activities and rights affected by the Redistribution of Plots.

Payment in cash must be notified to the Developer by means of Notarial affidavit.

 The owners who are not consent to the proportion of land that they should transfer to the Developer in concept of payment for his activity, can oppose to that requesting to pay not in land but in cash. The request of paying in cash must be done by means of Notarial certificate, and notified to the Developer and to the Town hall within twenty days following the approval of the Project of Urban Development.

 With the request has to be enclosed sufficient guarantee - mortgage or financial-, to assure the payment to the Developer. The quantity to guarantee will be the one that corresponds in accordance with the estimate of cost of urban development (increased in an equal percentage to the one which, with regard to the estimate cost of urban development, the Developer gives as initial guarantee -normally 7 % of the entire cost of Urban development-).

The payment in Plots is made  in the Redistribution of Plots.

The approval of the Redistribution of Plots  can take place previous to the approval of the Project of Urban development if the owners agree with the proportion of plots that correspond to receive for the Developer, or when the Developer receives all his rights in cash.

  In the same step, the owners who expressly refuse to cooperate in the programming of his Plots can resign from it, whenever they communicate to the Town Council or to the Developer their decision to receive, after the Project of Redistribution of Plots is approved, replacement indemnification instead of plot of substitution.

Of course, to exercise adequately this right, the owners must know all the commitments with economic incidence in the Program, for which the notifications have to accompany sufficient information about his building rights and the commitments that the owner assumes  if decides to cooperate with the developer.

 The Redistribution of plots

 The Redistribution of plots of land is the juridical operation consisting of a new division of the properties according to the planning approved on the PAI, to allot them to the owners in proportion to their respective original rights. In other words, it is the grouping of the properties affected by a PAI, in order to make a new proportional redistribution according to the Plan.

 The Redistribution of Plots of Land, in this sense, is a juridical instrument that solves in a single act several juridical operations: grouping of properties, segregation of properties, allotment of plots to the owners, boundaries regularization, just and equitable distribution of the costs and charges of the execution, and, finally, transfer to the Town Hall  the  roads, plots for public equipments, and the corresponding building coefficient.

 The Redistribution of Plots of Land must achieve the just and equitable distribution of the benefits and the charges derived from the town-planning, included the expenses of urban development and management, the location of the building coefficient in building sites, in accordance with the planning, the allotment to the Municipality (and, if appropriate, to the developer) of the areas of obligatory and free transfer, the forced exchange (if agreement has not been reached), of the original plots for new building sites, and the boundaries regularization of all the plots according to the plan.

 According to the used criterion for Redistribution of Plots, the allotment of the resultant plots or building sites will take place in accordance with the complete individual building coefficient, leaving the allotted plot subject to the payment of the charges of the urban development; or, on the contrary (when paying in plots), with deduction on behalf of the above mentioned coefficient, with adjudication to the Developer of the proportional building coefficient as compensation for his work.

Guarantees granted by the Developer in favor of the Owners

The Developer, to be entitled to charge and get paid from the owners, has to make sure, before the Town hall, but in favor of the owners, his specific obligation to turn into building plots the owner’s land  by means of guarantees that consist on  First Mortgage (or financial guarantee) for equal value to the payment it secures  over the awarded Plots to the Developer, and are granted immediately after the approval of the Forced Redistribution of Plots (in whose virtue the Developer receives, in concept of payment, building plots) This guarantees  are cancelled - previous approval of the Town Council - as become executed each of the guaranteed works.  

 Finally, the Developer is responsible for the damages caused to the owners or to other persons as consequence of his activity or for lack of diligence in the fulfillment of his obligations (except if the caused damages take place as consequence of direct order of, or in the fulfillment of a condition imposed by, the Town Council).

Rights of the owners in the phase of execution of a PAI

 The owners have right to receive, at all times, documented information about the costs of urban development that they have to assume, and to cooperate with the Developer, whenever they assume the charges and risks of the execution.

  They can also propose to the Town Council and to the Developer suggestions and amendments for the making, correction or modification of the Project of Urban development and Estimate of costs of its execution.

  The owners who contribute to the charges of urban development  can require that the Developer executes it with the diligence of a good businessman and that the Town Council protects the good execution of the PAI.

  The right of the owners affected by the PAI is fixed according to their buildings coefficient.  In any case, the owners who justify in any moment that the relation between the charges that he must support and the allocation of result is lower than the value of his original property, have the right to move back from the PAI receiving the market value of the initial property, referred to the initial moment of the PAI.

 In case he is an Owner of a consolidated building, the entire payment of the owner cannot be major that the appreciation that experience his property, determined by means of an expert appraisal.