ANDORRA Law and Practice Contributed by: Elena Redondo, Albert Hinojosa and Marc Ambrós, Cases & Lacambra
residential rental properties intended for habit - ual and permanent residence, provided that the ownership was maintained for a minimum of ten years. The Act introduces two exceptions: • real estate developments that are entirely intended for rental housing for habitual and permanent residence (including common areas, car parks and storage rooms assigned to the rent), provided that at least 50% is at an affordable price, and that the ownership of the lease is maintained for a minimum of ten years; and • real estate developments that are required to be adapted to the conclusions of the study of maximum parish load capacity. Finally, concerning the penalty regime estab - lished by the Act for non-compliance with its provisions, among the penalties provided for in the Act, unauthorised foreign investments may incur fines ranging from EUR10,000 to EUR20,000 and may also result in the nullity of both the investment and the entity through which it was conducted. 1.3 Proposals for Reform The Andorran government is working on a law proposal to modify the current regulations regarding urban planning and development to substitute the current Act and adapt it to the actual circumstances of the country and the sec - tor. The actual regulation is from the early 2000s.
• an absolute freehold, permanent and absolute tenure of land or property, with the freedom to dispose of it at will; • a co-ownership, which is the right owned by more than one person over real estate; or • in a condominium ( propietat horitzontal ), the ownership of common premises is shared by the plurality of owners of each unit that makes up the apartments. On the other hand, the property right could be understood as a limited right. Therefore, in Andorran law, the following rights are recognised as limited property rights: • leasehold, which is the temporary right that includes the ability to build on the ground or in the subsoil, and the right to overhang, with the right to appropriate what has been built for a specific period; • beneficial interest, which is the right by which a person can use the property of another and enjoy its benefits, with the obligation to preserve and take care of it; and • emphyteutic lease, which is the right by which the useful domain of a real estate property is given for a period by the payment of an annual pension, whereby the assignment is made as recognition of the useful domain of the property. 2.2 Laws Applicable to Transfer of Title Titles are transmitted by the theory of the title and mode. This theory is a system of transmis - sion of ownership that requires the conclusion of an agreement, the subsequent delivery of the real estate to be transmitted, and proof before a public notary, without any aspect being enough separately. Depending on the activity to be carried out with the real estate, attention should be paid to
2. Sale and Purchase 2.1 Categories of Property Rights
The right of property can be understood as a full right or a limited right. In Andorra, the right of property understood as a full right could be:
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