What is a segregation of a plot in Spain and how to do it?

In this article we will explain what is a segregation of a urban plot in Spain and what are the required steps to do it.

What is a segregation?

The segregation of a plot is an act of division whereby one or more parts of a plot are separated with the aim of subdividing it to create plots with smaller areas from the original property. In this way, the resulting plots can be disposed of independently.

Differences between division and segregation of a plot.

Whereas, in the segregation of a plot, the original plot is maintained, without counting the plots resulting from the segregation, inthe division the original plot disappearsto give way to independent plots resulting from the division.  

What taxes will be due?

The difference between segregation and division of plots is important from both a legal and tax point of view.

The segregation of a property will accrue taxes on the segregated part of plot while the division will accrue taxes on the entire divided plot. Therefore, from a fiscal point of view, segregation is usually more convenient than division.

How is the segregation process carried out?

The segregation of a property must be carried out following the steps set by law, since it will have consequences that, among others, will affect the cadaster and the plot registry.

To carry out a segregation process it will be necessary the intervention of a technician, collegiate architect, who analyzes the property, carries out measurements, studies the technical plans and prepares a segregation report. Within this report all the technical requirements will be specified, as well as the plans of the resulting plots after segregation.

Once the segregation report is prepared, it must be submitted to the city council to initiate the administrative procedures of the segregation process. The city council will study the report and will rule on the appropriateness or not of the segregation, as well as the need or not of the issuance of the license for segregation. The project and the resulting properties must comply with the urban planning regulations of the place. And, in addition, if the property is located within a community of owners, it must also comply with the provisions of the Horizontal Property Act.

What document will need to be prepared for the correct segregation of the plot?

The most important document that will be presented in the plot registry to register the new properties resulting from the segregation will be the Deed of Segregation or Parceling.

This deed must be prepared once the ok to the segregation report or the license itself is obtained by the city council.

Likewise, it will be necessary to register all documents that can be registered relating to the segregation itself, such as those relating to the transfer of ownership or those relating to mortgages. 

What if the property is mortgaged?

If we make a segregation of a property that is mortgaged, the mortgage will subsist in each of the properties resulting from the segregation, according to the principle of mortgage indivisibility.

On the other hand, the division of the mortgaged property will not require the consent of the mortgagee, that is, the bank, due to the fact that each of the new properties together with the original one will be responsible for the totality of the secured credit. In addition, the bank may request the execution of any of the plots or all simultaneously. 

What requirements must be met to be able to segregate an urban property?

In order to segregate an urban property, a series of requirements must be met, for example, that the property resulting from the segregation has a minimum area of 600 square meters.

The plots, the original and those resulting from segregation, must have access to the public road.

The plots that have buildings must comply at all times with the urban regulations of the area after segregation.

Finally, if the plot to be segregated is a rustic property, the requirements for segregation will depend on the corresponding autonomous community.

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