1 Safely Purchasing a House in Spain Together with the Association of Spanish Property and Commercial Registrars, the Ministry of Public Works, Transport and Housing has drawn up a brief, simple guide outlining the different steps and recommendations that a private purchaser should follow when buying a house in Spain. It contains very useful information, is free of charge and is available to any Spanish or foreign purchaser. It aims to help such purchasers make informed decisions. Within the Spanish legal system there are a series of documents that certify that a house is completely legal. Make sure that you have all of them before purchasing a property. These are: 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). Page 1 of 5
2 We also recommend: In the case of new constructions, for buyers to 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. In the case of housing that is not newly built, ask for last year's property tax receipt, a certificate signed by the president of the Owners Association and endorsed by the building s secretary stating that the property you are buying is up-to-date with all payments, as well as a formal confirmation and a public document stating that the property is not subject to any rental contracts. When buying your property, there are a series of steps which will enable you to make your purchase with full guarantees: 1. Check the legal position of the property by contacting the Property Registry The Property Registry is a state body and the Registrars are civil servants who provide you with verbal information free of charge and who have the power to issue certificates concerning the legal position of the property. In the Property Registry you can obtain the following information regarding each dwelling: A description of the property, its position, surface area, the amount under common ownership in an apartment property, the administrative system that may affect it (e.g. whether it is subsidised housing); any existing mortgages on the property, when they are due to expire and capital, interest and costs; any embargoes to which the property is subject; any litigation that may affect it, and whether proceedings are under way for urban planning irregularities. You can also obtain information, if you explicitly request it, regarding the statutory system for apartment properties, the mortgage clauses, the price paid in previous ownership transfers and the title deeds. Page 2 of 5
3 The Property Registry can provide you with this information in the form of a simple informative note, or in the form of an ownership and liabilities certificate, which is an official public document. In addition, you can also ask the Registry to issue an explanatory report describing the registration position of the property. In Spain, any Property Registry can provide you with these documents, irrespective of the municipality in which the property is situated. Furthermore, you can request this information by fax, post or and via the website of the Association of Property Registrars at To obtain these certificates, you will be asked to identify yourself and to provide some type of document which will make it possible to identify the property for which you are requesting information, such as registration details (the registered property number, the section, the municipality), or details of the owner (name, surnames, corporate name, fiscal identification number/fiscal identification code), or other simple data such as the street and house number. 2. Study the existing mortgage charges In addition to the legal requirements, it is important to pay attention to whether the property you are going to acquire has a mortgage (if this is the case, it will appear in the Property Register). If so, we recommend that you: Ask the vendor for a bank certificate with the outstanding amount to be paid. Negotiate a better interest rate with the bank. You are not obliged to assume the mortgage loan contracted by the vendor under the same conditions; rather you may demand its cancellation or obtain a new loan with another institution. 3. Go to a notary to carry out the purchase and sale Notaries are also independent public officers who have the authority to attest documents and who are obliged to counsel parties at the time of the sale, informing them about the law that applies to them. Furthermore, they are in charge of drawing up the contract in accordance with the parties wishes and adjusting it to the law. The contract takes the form of a public deed. Page 3 of 5
4 The public deed is essential in order to register the sale in the Property Register and to benefit from the security it gives you, as explained in point 5. Before he or she authorises the sale, the Notary shall request a non-certified extract from the Property Register. You may therefore review the legal status of the property again at this point. If you have any doubts, ask the Notary before you sign, it is his or her role to advise you. The sales contract may have been previously formalised by both parties in a private document, but that document shall not contain all the legal guarantees if it is not converted into a public deed. In Spain, the Notary acts at the time of the sale, but he or she may also advise you in advance, just as lawyers and agents do in your country of origin. 4. Make sure you pay the corresponding sales taxes Purchasing and selling property in Spain implies payment of certain taxes: When buying a new property, you must pay VAT to the vendor. When buying a used property, you must pay the Tax on Capital Transfers through one of the banks recognised by the Government. In both cases, if you buy via a mortgage you must pay the Tax on Documented Legal Acts to a Tax Authority account through the collaborating banks. 5. Register as owner of the property in the Property Register Once the sale has been carried out and the taxes have been paid, go to the Property Register corresponding to the property s location to register it. Registration is not an obligation, but if a purchaser does so he or she shall be fully protected as the proprietor: Page 4 of 5
5 What appears in the Register is presumed to be true and can only be modified by a judge. Nobody may dispute your right regarding the property that has still not appeared in the Register at the time of carrying out the sale and if someone wishes to register a document he or she may only do so with your consent or by legal procedure to which he or she has been party. You shall be protected against the vendor s creditors and against any charges that may occur which have not been entered in the Register. You shall be protected even if a judge were to decide that the contract through which the person who sold you the property originally acquired it is void, for reasons that do not appear in the Register. Furthermore, you must understand that according to Spanish law the vendor is responsible for hidden defects at the time the property is sold or which may occur subsequently, even when he or she was unaware of them. This means that: If the property does not comply with the quality objectives in the habitable indoor space as stipulated in current legislation, the purchaser has the right to either waive the sale (paying the vendor the costs he or she has incurred) or to a reduction in the price, duly established by official experts. You may enforce liability on the building s developer and the builder and the technical supervisor for structural construction defects that may occur during a period of 10 years; for damages that may affect the building s habitability for a period of 3 years; and for damages caused in finishing defects for a period of 1 year. Spanish Law requires those persons who may be liable to have insurance coverage which guarantees that you may recover indemnity without any problem, should this be the case. Page 5 of 5
International Personal Banking - Personal Account Application Form Standard Bank Isle of Man Limited Checklist for applicants Completed application form in full (all sections are mandatory) Each applicant
Help to Buy Buyers Guide Homes and Communities Agency http://www.homesandcommunities.co.uk/helptobuy August 2014 What is Help to Buy? Help to Buy is equity loan assistance to home buyers from the Homes
Current Terms and Conditions for Business Finance Together with: Memorandum of Provisions for Land Mortgages Security Interest Provisions for General Security Interests and Asset Security Interests Issued
House Purchase Loan Application Form Roscommon County Council Housing Section Court House Roscommon Phone No. 090 6637233/238 Fax No. 090 6637244 Web: www.roscommoncoco.ie Email: firstname.lastname@example.org
This factoring agreement made, signed and executed by and between FACTORING FINANCIAL SERVICES INC. (Factor) residing at Büyükdere Caddesi No: 191 Apa Giz Plaza 34330 Levent-İstanbul and............ (Client/
Organizing Your Limited Liability Company in North Carolina Elaine F. Marshall Secretary of State A Message from The Secretary of State of North Carolina Over the past few decades, North Carolina has earned
Part 14 General Request Table of Contents General Law... [14-0000] 1,2 Body Corporate and Community Management Requests... [14-0100] 1,2 Reservation of Name... [14-0110] 1,2 Community Management Statement...
GRIF GENERAL RULES FOR INTERNATIONAL FACTORING 03/10/2011 GRIF General Rules for International Factoring Page 2 of 20 TABLE OF CONTENTS SECTION I General provisions... 4 Article 1 Factoring contracts and
Consumer Protection Code August 2006 SCOPE Legislative Basis This Consumer Protection Code ( Code ) is issued by and in the name of the Irish Financial Services Regulatory Authority ( Financial Regulator
. Incorporating Your Business in North Carolina Elaine F. Marshall Secretary of State A Message from The Secretary of State of North Carolina Over the past few decades, North Carolina has earned a reputation
Company Number: 1800000 1 PRELIMINARY COMPANY LIMITED BY SHARES ARTICLES of ASSOCIATION of BRITISH TELECOMMUNICATIONS public limited company (Adopted by a special resolution on 5 August 2010) 1.1 Any regulations
June 2011 1 Introduction Lending secured on land remains an important part of their business for many lenders, whether they are providing commercial, investment or development finance, or lending to homebuyers.
TRUST DEED INVESTMENTS WHAT YOU SHOULD KNOW W!! SERVING CALIFORNIANS SI Bureauu OF REAL E NCE 1917 ESTATE TRUST DEED INVESTMENTS WHAT YOU SHOULD KNOW W!! EDMUND G. BROWN, JR. Governor State of California
Orrick's Technology Companies Group Start-Up Forms Library The attached document is part of the Start-Up Forms Library provided by Orrick's Technology Companies Group. By using/viewing the attached document,
Feed-in Tariff Application Form How to complete this form This is an application form for ScottishPowers Feed-in Tariff (FIT) Scheme. ScottishPower is a mandatory FIT licensee and is required to register
Guideline 6A: Record Keeping and Client Identification for Life Insurance Companies, Brokers and Agents Rev. 2014-02 Guideline 6A: Record Keeping and Client Identification for Life Insurance Companies,
Territory Car Insurance Product Disclosure Statement and Policy Thank you for choosing TIO Insurance, the only fully Northern Territory owned insurance organisation. With years of local knowledge and expertise,
T s And C s. General terms and Effective conditions April 2012 Effective April 2015 It s Ours. a What s Inside Here. General provisions 1 1. What are these terms about? 1 2. When can our terms and product
Coming to Grips With Settlement Coming to Grips With Settlement What to Know Before Your Closing The closing, also known as the settlement, is the last step in getting your mortgage and actually becoming
COMMERCIAL LEGAL EXPENSES INSURANCE POLICY UNDERWRITTEN BY Certain underwriters at Lloyd's 1 IMPORTANT NOTICES Insurer s Notice to the Insured: (These notices are subject to and do not affect the provisions
Surviving the Real Estate "Escrow" Process in California: Important Things and Tips You Should Know, and Mistakes to Avoid Table of Contents A. Introduction and Brief Overview.... 4 B. Escrow Basics....
START-UP PACK CONTENTS 1 Welcome 2 An introduction to key legal documents for start-ups 6 Glossary of useful venture capital and company terms 9 A step-by-step guide to setting up a company in the UK 11
1 A Resident s Guide CONDOMINIUM OWNERSHIP WHAT YOU NEED TO KNOW Audrey M. Loeb, LSM LL.B., LL.M., ACCI Offices in Toronto, Markham, Guelph, London and Kitchener-Waterloo. Added experience. Added clarity.
Advice from Consumer and Business Services about buying or selling a home The information contained in It s About the House: advice from Consumer and Business Services about buying or selling a home is
The Wisconsin Way A Guide for Landlords and Tenants More than 1.5 million Wisconsin residents live in rental housing. In some of the State's larger cities, more than half of the residents live in rental
1. WHAT IS THIS AGREEMENT FOR? CELL C SERVICE PROVIDER COMPANY (PROPRIETARY) LIMITED SUBSCRIBER AGREEMENT TERMS AND CONDITIONS 1.1. This Agreement is for the supply of our Services for the Initial Contract
Your home: the next steps Property Address Pack Delivery Date Practical Completion Date Defects Liability Period Finishes Moving Forward Contains useful general guidance for what to do now your earthquake
Key Features of the Just Retirement Fixed Term Annuity This brochure outlines the key features of the Just Retirement Fixed Term Annuity. The Financial Conduct Authority is a financial services regulator.