by Helen Llewellyn 
Buying property in Spain is likely to be very different from what you are used to. The basics are the same, find a property you love, make an offer, get offer accepted, choose a date to complete and gate the keys, sign for the property get the keys. However, as is often the case, the devil is in the detail.
What do I need to know about buying property in Spain.
- You need to know that all three layers of property paperwork are correct (or sometimes irrelevant).
- You need to know if there are any debts secured on the property.
- You need to know if the person who is selling it is actually the owner or someone legally representing the owner.
- You need to know what, if any services are connected to the property. Is water connected or does it arrive in another form – deposit, agricultural etc. Is electricity connected or do you have solar panels? Is the solar connected to batteries, the main electric network or both.
- You need to know if there are any local infrastructure changes coming up – e.g. large pig farms, new electric pylons being installed, railways being built etc.
- You need to know if all of the utility bills, community charges and taxes are paid up to date.
You need to know what is included in the sale.
How do I know about all of those things when I am buying property in Spain?
Keep reading and we will tell you.
The three layers of paperwork are: escritura, cadastral and nota simple. We will explain what each does in a moment. Ask your lawyer/ estate agent or relocation consultant about it. All should be able to give you clear answers that you understand. Don’t be afraid to keep asking questions until you do.
You may have heard of illegal properties in Spain. It is true that some were bulldozed down. Now this is far less likely to be the case. Illegal properties can be regularised which means they are recognised as able to be there by the Spanish authorities. This can be a costly process, especially if the electric and water are not yet connected to the mains and you want them to be. Roadways can also be expensive if town halls decide to add them to urbanisations and collections of houses. The document that regularises a house is called an AFO. An AFO also means that you cannot alter the property and in theory there is no guarantee that you would get permission to rebuild if there were a disaster like a fire or flood. In many areas properties with an AFO now sell as well as those without but you should know and understand what you are getting involved with. At Ideal Casa we would talk you through the implications of buying an illegal build or a property with an AFO.
Debts and Ownership – how to check
Debts can be attached to the property by anyone. This could be local town hall for unpaid IBI (council tax, electric or a loan or mortgage. It could even be a loan made by a neighbour. If it is registered as being secured on the house it will appear in the nota simple. Registered debts follow the owner of the item so become yours if not cleared. Any unregistered debts follow the creditor (person who had the loan etc).
The owner is mentioned in the Escritura, cadastral and nota simple (if there is one). The only guarantee of ownership is the nota simple. If the property does not have a nota simple (registered with the authorities) an Escritura can be signed over to a buyer on Monday and the same escritura used again to sign the property over to another different buyer on Tuesday too.
Surely the estate agent will look out for me and tell me all the correct details
Agents often say connection possible on property details. Ask questions about that. When was it last connected? What is needed for it to be connected? Get a quote from a reputable tradesman and check for connection fees from the authorities. Do not ask the agent to get the quote… How new are the wires or pipes? You do not need to be an expert to gauge this. A boletin (official check that the wires and pipes are up to modern standards) is often needed for reconnection, this may mean that things need to be brought up to modern standards before a connection is possible. If the connection is already in place changing the name from the seller to the buyer is generally a quick and easy process and often handled by the lawyer, agent or relocation consultant.
You may think that your lawyer will research local infrastructure and planning applications which may affect you but this doesn’t happen much in Spain. So again, you need to ask questions, or get someone to do it on your behalf. Spanish customer service responds to direct questions but does not often “go the extra mile” and is rarely customer centric.
When a home is sold the lawyer or notary generally asks for proof of payment of the most recent water, electric, IBI bill and any community fees.
Spanish estate agency is unregulated. Spanish law firms do not have a duty of care to their clients in anything like the same way that they do in either UK or USA. Knowledge is power, if you ask questions and have a good idea of what to expect you will be fine. We, at Ideal Casa are here to help and support you too of course.
Knowledge is power – take some responsibility yourself
Ensure that you know what land, property and contents are included in the sale. Get this written into the sales contract. It is a good idea to do a pre completion check on the property 24 hours before you are due to sign. Many times a water pump or wood burner is no longer at the property when it was implied that it would be. Watch out for people switching appliances and furniture too. It has been known for an old fridge or bed to be switched for what was there when the viewing was done. It has happened to me.
So what is the process of buying in Spain?
View.
Check paperwork – escritura, cadastral and sometimes nota simple.
Reserve the property by paying a deposit – usually €3-5,000 this is only refundable if the seller pulls out or the agent has misrepresented the property in a fundamental way. Some basic sales terms may be agreed at this point.
More detailed paperwork check.
Sign a compraventa arras contract and pay 10% of the purchase price, less the deposit already paid.
Agree a date for completion and taking possession.
Sign at a notary and collect your keys.
This can be done in a few weeks but more usually will take 6-12 weeks. If you would like to wait longer say and it becomes a negotiation point.
You don’t have to be present at the notary, you can give power of attorney for someone to go on your behalf. That could be us or your lawyer etc.
Please explain the paperwork of buying in Spain
There are three items for most properties.
1. Escritura
2. Cadastral
3. Nota Simple
What is an escrtitura?
The Escritura is a kind of deed, it says how big the property is, what it is built of, whether it is a house and outbuildings, what land is included, the owner and often the neighbours. The more specific the better. If your property is shown as a cow shed but looks like a house amendments are needed.
What is the Cadastral?
The Cadastral is an online boundary register. It directly relates to the IBI -community tax. A value is assigned to a property in the cadastral too. If the value is very low and the price paid much higher the authorities may charge you back tax. For instance the property may sell for €150,000 but the cadastral value may be showing as €50,000. The authorities can ask you for back tax up to the €150,000 or the value that they value it at.
The boundaries on the cadastral should be the same as on the escritura and match what you were shown on the viewing. They aren’t always exact in the countryside but should be very similar.
What is a Nota Simple?
A Nota Simple is a note of what is registered with the Spanish authorities in terms of ownership, debts and encumbrances. Check that the Nota Simple says residential property on it. Ensure that it doesn’t say – in course of construction or similar.
The Nota Simple will also show the cadastral reference. Cross check it against those on the cadastral and escritura. All three should match.
If you would like a copy of the buyers property checklist that you can download and use for properties that you are viewing join our newsletter or reply saying guide please and we will pop a copy over to you.
If you would like help with your move to Spain we offer a range of services from Ask Me Anything hours to a full relocation service. The website is about to be updated but please do get in touch if you would like more details or have questions.
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