BEFORE BUYING A HOME IN SPAIN
Please note that this is only a general summary of the different procedures. Property conveyancing – that is, the transfer of legal title of real property from one person to another, requires a sound knowledge of the Spanish legal language and regional regulations.
There are some more documents which you will have to get prior to signing the contract. The most important ones are:
BUYING A NEW BUILDING PROPERTY IN SPAIN
- A construction permit and certificate from a competent expert verifying that the building matches both the licence granted by the town council and the project it approved.
- A first occupancy licence, a habitability certificate and other administrative authorisations that establish that the dwelling is legally habitable.
- Documents signed by the utilities supplying the essential services (electricity, water, gas and telephone).
- The entry of the building in the Property Register (new buildings), together with insurance cover against hidden defects or flaws in the construction, as established by law.
- A Property Registration Certificate setting forth the legal situation of the building.
- The Owners Association Statutes (or inscription in the Property Register of the deeds of any new, finished and horizontally-divided building).
We also recommend:
- Ask the developer for: a Certificate from the Commercial Registry accrediting the legal existence of the company, details of its registration, the administrators and/or their representatives, the company's registered office, its fiscal identity number, confirmation that bankruptcy proceedings have not been registered, and a declaration that there are no claims, lawsuits or any other contingencies that might affect the development.
BUYING A SECOND HAND PROPERTY IN SPAIN
Check the legal position of the property by contacting the Property Registry
If the option is to buy a used or renovated apartment, it is advisable to have the title deed and the certificate of ownership and charges, as well as the plan of the house at a scale of 1/50. In the case of second-hand homes, the certificate of occupancy is important because it confirms that the property meets the minimum requirements to be inhabited. In addition, it should be remembered that this document expires 15 years from its issuance, so you must check that it is up to date and in force.
Likewise, the seller is obliged to supply other documents if they are requested. This is the case of the registration bulletins in the service network, the home guarantees, the registration data of the apartment or the deed of sale, and the receipt that confirms the payment of the last IBI. The cadastral value of the property must appear in this last document.
If there are doubts, as it may be in the case of real estate located in undeveloped areas or near the coast, it is important to request the urban qualification to verify its legality. Another document is the book of the building, which collects the identification and construction data of the property, the maintenance tasks to which it has been subjected and, if any, the reforms carried out.
BUYING AN OFF-PLAN PROPERTY IN SPAIN
In the majority of the cases, the first agreement for the purchase of the Spanish properties is done when the construction is projected, and works are not started yet.
Off-plan projects demand a long term purchase/construction process which may create insecurity in the investor’ side, specially when they have to deposit and pay amounts of money in account of a final price of a property when, on that moment is only a “project
”. This uncertainty is even higher when the buyer/investor does not know essential aspects of the project as: the Builder´s reputation or credit score, the economic situation of the building’s project, etc. And, the most important, which kind of guaranties are offered to secure the required payments in case the project is not finished.
– Legal and Administrative construction documents:
When buying a new property, there are several documents which must be studied and properly checked in order to control the legal situation of the plot and building, and the proper development of the construction.
This is a task which must be done by recognized and construction specialist lawyers
, and it must be done in every step of the construction process: From the earliest steps of the process till completion. So, in every step, there are documents and information which must be supplied and obtained from the purchasers, or by their lawyers, in order to confirm that all the legal and administrative requirements are fulfilled properly.
If you are thinking of buying a home, it is best to ask for the help of an expert, since, as you have been able to verify, the purchase of a property has legal implications.
Enter – Real Estate Agency in Alicante:
+34 678 00 88 00