Essential aspects to consider before buying a property in Spain

The hardest part of buying a property is choosing the right home for you. In order to do that, you must visit the home for yourself, look it over, see if it lives up to its claims in terms of the quality of its materials, the condition of its installed equipment, its general upkeep, the amount of light it gets, the views, the neighborhood, the noise level, access to transport, and so on.

 

Once you have chosen the right property you should consider the following aspects before signing any contract or paying any deposit:

 

 1.- Choose a lawyer who is specialized in Spanish land law. Check that he/she is registered and practicing with the local Colegio de Abogados (Bar association) by asking for their registration number and verifying this with the Colegio de Abogados. You should also check that your lawyer has professional indemnity insurance. The Spanish property conveyancing system is different and you should ensure that those involved in the transaction are qualified professionals, who have an expert knowledge of how the system works.

 

 2.- Apply for a Land Registry Extract “Nota Simple” in order to check that the property (a) is free of debt or charges (there are no loans outstanding), (b) actually belongs to the seller, (c) its description matches what the vendor has told.

 

 3.- Check that the vendor is really entitled to sell the property. If the vendor is a legal company it has to be duly inscribed in the Companies Legal Registry (Registro Mercantil).

 

 4.- Check that there are no legal proceedings initiated against the property for contravention of land planning law and planning permissions are in order and the property is a legal build. This is particularly relevant when buying off-plan or direct from a developer.

 

 5.- 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.

 

 6.- Ensure that the Property Tax (Impuesto de Bienes Inmuebles) is paid. If it is unpaid, this tax is attached to the property so the new owner will become liable.

 

 7.- Get the Catastral certificate giving the exact boundaries and square meters of your land.

 

 8.- Ask the vendor for the license of first occupancy or habitation certificate issued by the town hall. You will need this document to connect to electricity and water companies. You should also ask for a receipt to prove all utility bills have been paid by the previous owner.

 

 9.- If the property is included in a Community of Owners, get a certificate 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 (two years in total).

 

10.- Ask the vendor for the energy efficiency certificate.

 

 11.- Finally, do not forget to apply for the NIE number, which is a is a tax identification number to be used in Spain. Without your personal NIE number you will not be able to purchase or sell a property, obtain a mortgage, start up a business, or work in Spain.