Legal Check List for Buying a Property in Spain
Use the following legal check list to help you through the process of buying a property in Spain. We should stress that the list is not exhaustive, but covers most of the issues that concern property buyers. Before embarking on the purchase of a property in Spain we strongly recommend that you take the advice of a Spanish solicitor.
Does the property have a building licence?
Your purchase contracts should include the details of the planning approval.
Confirm that the certificates, from the Architect and the Town Hall, have been obtained for the completion of the building (Certificado de Fin de Obra) and the Licence of the first occupation (Licencia de Primer Ocupacion).
Ensure that your purchase contract refers to all the above licenses and that all necessary fees have been paid and that this fact is reflected in your contracts. Also make sure that all the registration details are included, the especially the Finca number.
Your purchase contract should include the total size of the plot and the total constructed area of the property plus terraces (all in square meters).
If you are buying a property off-plan then make sure that Developer/Promoter has a bank guarantee in place (this is actually an insurance policy paid by the Developer/Promoter in your favour). This protects the funds that you have paid in the event that the Developer/Promoter cannot complete the construction. In this situation, the insurance company will pay for their completion or refund your payments.
Confirm the details of your share of the costs of participation in the Community of Owners Maintenance and ensure that these are included in your contract.
The Developer/Promoter or current owner is responsible for all debts on the property, up until the date of the signing of the deeds (Escritura) and handing over the keys.
If you don't wish to use the mortgage facility offered by the Developer/Promoter, you must obtain confirmation in writing that you will not incur any costs associated with this.
Make sure that it is clearly stated in the Contracts that you are only responsible for the costs of preparing and registering the title deeds (The Escritura) for the Sale & Purchase of the property, and that you are not liable for the costs of the segregation of the land or the declaration of the new building.
Before signing the purchase contract you must obtain a copy of the 'Nota Simple', a document from Land Registry proving that the person you are buying from is the registered legal owner of the property and that there are no mortgages or encumbrances on the property from any third party.
Obtain a list of costs of for preparing and registering the Title deeds (The Escritura) and the calculation and amount of property transfer tax (Plus Valia Tax).
Confirm the amount of any Community Fees.