Spanish Re-Sale Property Spain | Spanish Resales | Re-sale Property Spain | Mortgage Solutions 4 Spain

Buying a re-sale property in Spain

Buying a Re-Sale Property in Spain is simple provided the Title Deeds are in order (see below).

You will usually be asked to pay a holding deposit, then payment of 10% of agreed purchase price (via a Private Purchase Contract) and subsequently payment of outstanding balance on completion. Completion involves signing an Escritura de Compraventa (Exchange of Title Deeds) at the Notary.

Documentation

Virtually all property in Spain is registered at the local registry office and the seller, or their agent, should provide you (or your lawyer) with a recent Nota Simple. This is a certificate showing what is actually registered in the land registry.

The Nota Simple should state the size of the property, provide a brief description - which should match that on the official Escritura (Title Deeds) and the zoning of the land the property is built on - urban or rustic.

It should also state if there are any charges or liens, e.g. mortgages, unpaid taxes etc. and if the property is subject to any other legal restrictions.

Provided all is in order (which your lawyer should confirm) then the sale should be able to proceed without problems. However, there are some common "problems" encountered, especially for older properties and sometimes rustic properties. These include:

Registration data and escritura do not reflect subsequent changes to the property, e.g. increase in constructed area; and
The property has been registered for less than 4 years (affects ability to mortgage).

In the case of 1. if the work was carried out more than 4 years ago AND it meets current planning requirements then it should be a relatively simple process to amend the Title Deeds (it usually requires an architect's certificate). This is the responsibility of the seller and can usually be done at the time of completion.

For rustic properties more care has to be taken, especially in Andalucia, since the authorities are trying to limit building sizes.

As far as 2. is concerned, properties may be subject to prior claims and so very few banks will mortgage such properties. In addition your lawyer should ensure that all the appropriate permissions from the relevant authorities have been granted. You should only buy such properties if you are certain the paperwork is in order and that the chances of someone making a prior claim are minimal.