WHAT IS THE L.O.E.?
The Building Organization Act ("L.O.E." in its Spanish acronym) constitutes the legal framework (Law 38 dated November 5th, 1999) governing the building sector since its enactment or following its publication. This national law regulates all new construction works and projects on existing buildings for which the corresponding building permit is requested after it came into effect.
WHAT DOES THE L.O.E. REQUIRE?
All buildings for home residential use to which this law applies are obliged to take out a ten-year insurance policy covering material damage originating in or affecting the mechanical resistance or stability of the building's structure.
WHAT IS A TEN-YEAR INSURANCE POLICY?
It is an insurance policy providing a guarantee for the building works over a period of ten years from the date of the commissioning of the finished building. It provides for the repair of certain material damage specified in Spanish law or compensation to householders.
As an expression of its firm commitment with the L.O.E., we at Vallehermoso fully comply with it in favour of our clients. Our guarantee covers the waterproofing of roofs and the stability and proofing of façades for a period of three years.
BONDS FOR SUMS PAID ON ACCOUNT
In accordance with the provisions of Law 57 dated July 27th, 1968, and the First Additional Provision of the Building Organization Act (Law 39 dated November 5th, 1999), Vallehermoso undertakes to refund to clients any and all sums received on account prior to starting the construction work or during construction, plus any legal interest accruing until such refund is effected, if the client opts to rescind the contract on the grounds that the construction of the building has not begun or concluded on the date specified for the same, and obligation is guaranteed by means of an insurance policy or joint and several banker's surety.