The Importance of the Building Technical Inspection (ITE) in Real Estate Transactions

EKOENGI Team
19 Sep 2024
8 min read

When buying or selling a property, especially one that is over 30 years old, the Building Technical Inspection (ITE) is a crucial factor to consider. This report is often mandatory and can influence the purchase decision, the price, and even the financing of the property. In this post, we’ll explain why the ITE is essential in real estate transactions and what you need to know about it.

What is the ITE (Building Technical Inspection)?

The ITE is a report that assesses the condition of a building, checking whether it meets minimum standards of safety, health, and accessibility. The aim is to identify potential deficiencies in the structure, facades, roofs, water installations, electricity, and other common areas.

This certificate is mandatory for buildings over 30 years old in many cities and autonomous communities in Spain, and it must be renewed every 10 years. Its goal is to ensure that the property is well-maintained and to prevent long-term issues.

Why is the ITE Important in Real Estate Transactions?

The ITE plays a pivotal role in property transactions because it directly impacts the valuation and security of your investment. Here’s why it matters:

  • Market Value: A building with a favorable ITE will have a higher market value, while a property with significant deficiencies may see its price drop.
  • Mortgage Financing: Banks often review the ITE before approving a mortgage to ensure the property doesn’t present structural or maintenance risks.
  • Buyer Responsibility: Purchasing a property with a poor or pending ITE can lead to unexpected expenses for repairs. A positive ITE ensures the property is in good condition, giving buyers peace of mind.
  • Legal Obligations: In many municipalities, having an updated ITE is a legal requirement for selling a property. Without it, the sale could be delayed or even blocked.

What Does the ITE Evaluate?

The ITE covers the following areas of a building:

  • Structure and Foundations: Evaluates the building's structural integrity and foundation conditions.
  • Facades and Roofs: Assesses the condition of the facades and roofs (e.g., for leaks or damage).
  • Sanitation Systems: Checks the state of the building’s plumbing and water disposal systems.
  • Accessibility: Ensures the building complies with accessibility standards for people with reduced mobility.
  • General Installations: Inspects water, electrical, and gas installations to ensure proper function.

What Happens if the Building Fails the ITE?

If the building fails the ITE, the report will detail the deficiencies found and the timeframe for fixing them. These could range from minor cosmetic issues to major structural problems.

In such cases:

  • Property owners must cover the costs of necessary repairs.
  • A second inspection will take place after the repairs to ensure the issues have been resolved.

If you buy a property in a building with a negative ITE, you may be responsible for some of these repair costs.

How Does the ITE Affect the Sale Process?

A favorable ITE can speed up the sale process because it provides assurance to buyers and eases mortgage approval. It also prevents delays by ensuring the transaction complies with local regulations.

On the other hand, if the building doesn’t have an ITE or has an unfavorable report, you may need to negotiate with the seller to cover the repair costs or adjust the purchase price accordingly.

When is the ITE Mandatory?

The ITE is mandatory for:

  • Buildings over 30 years old.
  • Properties located in areas where periodic inspections are required by local regulations.

It is the responsibility of the homeowners’ association to ensure the ITE is completed, and the report should be up to date before any property transactions occur.

Conclusion: The Role of the ITE in Property Transactions

The Building Technical Inspection (ITE) is a critical aspect of buying or selling property, particularly in older buildings. A positive report ensures that the property is in good condition and won’t face significant issues in the near future. Before purchasing any property, make sure to review the ITE report to avoid unpleasant surprises and make informed decisions about your investment.

Need help navigating the ITE process or ensuring your property is in top shape for sale? Contact us at Ekoengi, and we’ll guide you through the complexities of real estate transactions in Barcelona.

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