SPAIN Law and Practice Contributed by: Marta González-Llera, Toni Barios, Jorge del Castillo and Rafael Baena, Cases & Lacambra
if these decisions or acts infringe the law. The decision may be reviewed by a judicial court. Such a claim does not require proof of a subjec - tive right or legitimate interest. 4.6 Agreements With Local or Governmental Authorities It is possible to enter into an agreement – named “urban planning agreements” – with local or gov - ernmental authorities, agencies, or utility sup - pliers to facilitate the development of a project. These agreements are subject to the principles of legality, transparency and publicity. Depending on the scope of the urban activity affected, they may be classified into two main groups: • planning agreements, the main objective of which is urban planning modification; and • management agreements, which seek to speed up the management and execution of planning. Expropriation agreements may be reached dur - ing an urban expropriation process with the pay - ment of a “fair price” or compensation. 4.7 Enforcement of Restrictions on Development and Designated Use Restrictions on development and designated use are enforced “ex ante” and “ex post”. Ex ante controls are applied by granting licences through a regulated procedure, as stated in 4.2 Legislative and Governmental Controls Appli- cable to Design, Appearance and Method of Construction and 4.4 Obtaining Entitlements to Develop a New Project .
Ex post mechanisms are applied through the exercise of the sanctioning power of the admin - istration and the granting of additional measures aimed at stopping any administrative infraction, including the suspension of construction works and demolition. 5. Investment Vehicles 5.1 Types of Entities Available to Investors to Hold Real Estate Assets Several alternatives are available to hold real estate assets in Spain. The typical vehicles to hold real estate assets are the following. • A limited liability company ( Sociedad de Responsabilidad Limitada ) or a public limited company or Spanish corporation ( Sociedad Anónima ). • Regulated investment vehicles, such as: (a) a variable capital investment company (SICAV); (b) the SOCIMIs (further explained in 5.3. REITs ); and (c) the real estate investment company ( Sociedad de Inversión Inmobiliaria ) known as a non-financial collective investment institution, necessarily a pub - lic limited company which invests mainly in urban real estate for rental purposes, or the real estate investment fund ( Fondo de Inversión Inmobiliaria or FII) known as a non-financial collective investment institution, without legal personality, which invests mainly in urban real estate for rental purposes. The regulated investment vehicles are subject to a special legal regime, with obligations deriving from their regulation. Moreover, regulated col - lective investment vehicles are more restricted
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