New-build defects: how to claim against the developer under the LOE (1, 3 and 10-year periods)
The LOE sets three warranty tiers by the seriousness of the defect. Knowing which one your problem fits —and proving it in time— decides a new-build claim.
When defects appear in a new-build home or development, the route to claim is set by the Spanish Building Act (LOE, Law 38/1999). Its article 17 organises liability into three warranty tiers according to the seriousness of the defect, each with its own period.
The three LOE periods
One year for finishing defects. Three years for defects affecting habitability —damp, insulation, installations—. Ten years for damage compromising the stability and structural safety of the building. The periods run from the handover of the works, and are warranty periods: the defect must appear within the corresponding period.
Who is liable
The LOE distinguishes between developer, builder, designer and site management. Liability may be individual or joint depending on whether the cause can be individualised. Determining the origin of the defect —design, management or execution— is precisely what allows the claim to be directed at the right party.
The role of the expert report
The report establishes three things: that the defect exists, which LOE warranty tier it fits and which party is responsible. It also quantifies the cost of remedy. Without that support, the claim is a mere assertion; with it, it becomes a defensible position.
Do not confuse it with the Civil Code
New-build defects are governed by the LOE; hidden defects in a sale between private individuals, by the Civil Code, with different periods. Framing the case correctly from the outset avoids losing time limits.
Frequently asked questions
When do the periods start?
From the date of the handover certificate, not from the purchase deed.
What is the ten-year warranty?
The ten-year cover for structural damage, backed by the developer's compulsory decennial insurance.
Do I have to claim before the damage appears?
No. The damage must appear within the warranty period; once it does, there is also an additional period to bring the action. Acting without delay is prudent.
