Buying or selling property in Spain
Steps to take before buying or selling property in Spain
What to Check Before Buying Property in Spain?
Before signing any agreement or contract with a real estate agency or a seller (whether a developer or individual), it’s crucial to verify the property’s legal status. An expert real estate lawyer should thoroughly review the following:
1. Up-to-Date Nota Simple from the Land Registry:
The nota simple is an official document issued by the Land Registry where the property is located. It confirms whether the property is free of encumbrances like mortgages, liens, usufructs, easements, or urban development charges. It also identifies the property owners and provides a detailed description (surface area, boundaries). Moreover, it states if the property is finished, under construction, or affected by the Spanish Coastal Law. Ensure the nota simple is current and accurately interpreted to avoid future issues.
2. Certificate of Urban Planning Compliance:
This document confirms if there’s any ongoing case related to planning permission breaches at the corresponding Town Hall.
3. Real Market Value of the Property:
Verify that the purchase price aligns with Spanish law by calculating the property’s minimum cadastral value.
4. Debts with the Homeowners' Association:
Ensure there are no outstanding fees or special levies (elevator installation, façade rehabilitation) with the Homeowners’ Association before signing the sales deed.
5. Debts with the Local Tax Office (Suma):
For second-hand properties, confirm that Property Tax and Rubbish Collection Tax payments are up to date with the local tax office.
6. Outstanding Utility Bills:
For second-hand properties, verify that there are no unpaid water, electricity, or gas bills.
7. Occupancy Status:
For second-hand properties, ensure there are no tenants or squatters occupying the property.
8. Other Considerations:
For new constructions, verify that the surface areas align with the architectural plans or municipal urban planning laws.
