Buying Information

A Spanish Lawyer

An increasing number of Spanish lawyers who practice in this area speak excellent English, among other languages, and are accustomed to dealing with British residents in Spain and their special problems, including property transactions.

How to find a good Spanish lawyer? We recommend that you ask advice from people you know in the area. Ask around until you find some satisfied clients. If not we are happy to recommend one.

Escritura Publica

The Escritura Publica is the registered title deed of the property. It is inscribed in the Registro de la Propiedad, the Property Registry and it is the only guarantee of title in Spain. If your seller cannot produce an escritura publica, something is quite probably wrong. In this title deed you will find a description of the property and the details of the owner. Also if any mortgages or court embargos exist against the property, they will be registered here as marginal notes. Your lawyer will want to see the seller’s title deed, if only to make sure that he really is the owner of the property being sold to you.

Your lawyer can obtain a nota simple from the Registry containing the pertinent details and notes of any mortgages against the property. We always try to ensure that this is passed to the buyers lawyer as well as the Escritura Publica. You may be able to obtain a nota simple very rapidly on the Internet if you are entered in the Registry program.

Who Pays What?

In deciding who pays what, the buyer and seller are free to contract whatever terms they choose. There is no Spanish law that requires that one of the parties must pay any particular tax.

Traditionally, the seller has paid the notary’s fees and the plus valia tax, as he is the one making the profit on the increase of the land’s value, while the buyer pays the impuesto de transmisiones and the registry fee, as he is the who is interested in making sure the property is truly registered to his name. Spanish consumer regulations state that this should be the normal division of costs.

It is a frequent practice, however, for the contract to state that the buyer will pay todos los gatos, all the expenses arising. There is nothing illegal about this.

Escritura de Compraventa

The final document is the escritura de compraventa and it must be signed by you and the seller in the presence of a Spanish Notario in order to make it legally binding. You can make a poder – a power of attorney - allowing another person to sign for you if you cannot be present.

The Notario, or Notary, is an official of the State who makes sure that contracts are legal. He keeps the original document in his files in case any question arises later. The Notario is a public official, not a private lawyer. His duty is to certify that the contract has been signed, the money paid and that the purchaser and seller have been advised of their tax obligations.

He does not verify or guarantee the accuracy of the statements made in the contract. He only certifies that the parties have signed it properly. Many people think that the Notario assures them that all statements made in the contract are true. This is not so. The Notario can, however, give useful advice to both parties.

Bank Loans and Mortgages

With the introduction of the Euro and the lifting of almost all exchange controls, both residents and non-residents may now obtain loans and mortgages against their Spanish property in any currency from any bank in the world – if they can find a bank willing to lend against property in another country. Although, obviously, you will still have to provide personal information on earnings, Spanish bank mortgages are now being offered at rates below those avialable in the UK and are amongst the lowest in Europe.