If you wish to proceed with a property purchase in Spain, Nova lawyers can advise and assist you in respect of all of the essential steps that an individual or a company will need to take. These include requesting a Spanish tax number and opening a Spanish bank account on behalf of you and/or your company. Without these two elements purchasing a property and paying bills relating to the property will not be possible.

 

Nova  lawyers will also be able to make the necessary property enquiries prior to purchase, draft or amend a private agreement in respect of a sale and purchase on your behalf, and advise you in relation to the paying of a deposit to secure the property. We can complete the transaction on your behalf before a Notary in Spain, if you are unable to attend in person, or attend the meeting with you.

 

If you are selling property in Spain we can manage its marketing and sale, as well as handle the legal aspects of the sale. It is a requirement that either the seller or someone representing the seller be present at the completion meeting.  Nova lawyers can prepare a draft power of attorney for you to sign before a Notary Public.  The document can be drafted in English and Spanish, double column, so that you understand its content, but avoiding the need to translate it into Spanish, thereby saving costs.

 

 We can also guide you through the essential costs involved in a property purchase, including Notary’s fees, Purchase Tax and Property Registry fees. We will also be able to advise you, as the seller, as to clearing any debts associated with the property and providing an Energy Performance Certificate.

 

 

 

BEFORE BUYING PROPERTY IN SPAIN

Here you have an extensive checklist of things to consider before you complete a property purchase in Spain:

 

• Check the land registry extract (nota simple), available from the Colegio de Registradores , and checked the following details

 

• Make sure that the property and land for sale match the details registered and the sellers are the registered owner(s)

 

• Make sure that there are no debts or charges, such as a mortgage, on the property (see nota simple)

 

• Make sure that there are no legal proceedings initiated against the property for contravention of land planning law

 

• Make sure that you have seen a paid-up receipt for the previous owner’s annual property tax (IBI), t is also wise to get a certificate from the town hall proving that there are no unpaid rates from previous years.

 

• Check the cadastral certificate giving the exact boundaries and square meters of your land - this will be linked to the land register record by a cadastral reference number. You should ensure that the property and land description contained in both records matches

 

• Make sure there is a license of first occupancy or habitation certificate issued by the town hall. You will need this document to connect to electricity and water companies. Developers cannot force you to complete without this license

 

• Make sure to get a receipt to prove all utility bills have been paid by the previous owner

 

• If applicable, make sure you see a certificate signed by the President of the Community of Property Owners (see Comunidad de Vecinos) stating that there are no outstanding debts. You should be aware that if you later find that there are such debts outstanding, as the new owner, you assume the debts for the current and previous year (2 years in total)

 

• as from 1 June 2013, all homes for sale or to let in Spain are required by law to have an energy efficiency certificate. If you are considering buying a property, the seller is obliged to show you this certificate

 

You should check that planning permissions are in order and the property is a legal build. This is particularly important when buying off-plan or direct from a developer. The town hall can tell you whether the building has all licenses and permissions and what type of land it is.

 

If the property is built on rural land or land that is not classified for construction, you should ask the regional government to confirm construction is authorized.

 

If you are buying an off-plan property, confirm that the property has been certified as finished by a registered architect and registered as a new build in the property register. The registration should also provide details of the developer’s insurance against structural and other defects in the construction. In the case of a private build (the previous owner built their own house and decided to sell before 10 years had lapsed) you will need to request these details separately

 

You should check the latest town plan to see whether or not the plot you wish to buy has any building restrictions, is in a green zone or includes a public pathway or similar. You can do this at to the town planning (urbanismo) department of the local town hall.

 

You should have the property surveyed. This is not obligatory, but it is wise to get a chartered surveyor to check the property.

 

You should know the cadastral value of the property and how much purchase tax will be due. Tax is charged on the council’s valuation of the property as opposed to the amount of the sale. You can check this at the regional government’s online tax agency site using the cadastral reference number

 

 

 

BEFORE BUYING PROPERTY OFF-PLAN

Before you pay

Make sure you have a bank guarantee (aval bancario) to cover your stage payments. Developers of off-plan properties are legally obliged to secure all deposits with a bank guarantee. However, bear in mind that this obligation only comes into force once the developer has planning permission, so you should ask to see this before making any payments.

 

You can also check this at the Land Registry, because if the description of the future building is registered, the registrar will have seen evidence that the licence exists and work has begun following the approved design.

 

You should ensure that the bank guarantee is individual and not a collective guarantee covering the whole development, which does not give the same protection. You should also request proof that your payments are deposited in a special escrow account, which can only be used for the construction of the specified development.

 

Make sure the developer is registered with the Mercantile Registry and the person who is going to sign on the developer’s behalf has the legal power to do so. You can visit any Mercantile Registry office or use the Land Registry website.

 

Check with the Land Registry to make sure the land which is going to be built on is registered to the developer you are doing business with.

 

Make sure you obtain a copy of the cadastral certificate giving the exact boundaries and square metres of your land.

 

Ensure the developer has insurance covering damage caused by structural defects to the building. This insurance should be included in the property manual (libro del edificio) that the developer gives you.

 

 You should also get a planning certificate for the plot you wish to buy from the town planning (Urbanismo) department of the town hall. This will include information such as whether the plot has any building restrictions, is in a green zone, includes a public footpath or if there are any current plans to build a motorway etc.

 

 

Before you sign the title deed

Once construction has finished, and before you sign the title deed, ask for proof from the seller that the construction has been finished in accordance with the description given in the plans. This is issued as a certificate (certificado final de obra). You can also check this at the Land Registry.

 

 Make sure you have the licence of first occupancy (licencia de primera occupación) which is issued by the town hall for new buildings and certifies that the property is habitable. You will need this document to connect to electricity and water companies. Developers cannot force you to complete without this licence.

 

 Consider asking a chartered surveyor to check the property. This is not obligatory but it is wise to obtain a professional opinion on the property before you complete. The Royal Institute of Chartered Surveyors (RICS) exists in Spain and there are residential chartered surveyors working across the peninsula and the islands. Members of the RICS are qualified and experienced professionals offering independent and impartial advice. The Spanish College of Architects in each province also offers a list of independent specialist surveyors.