Verification by the purchaser of the status of the property
Physical verification of the property. This type of verification will only be possible when purchasing second-hand or new, completed property. Remember: it is advisable to carry out this type of verification in the company of an expert.
Verification of the documentation related to the legal situation of the property. Once the property has been physically verified, the property should be checked in the corresponding property register, that is to say: consult the Property Registry in order to determine the existence of any type of conditioning factor relative to the property to be acquired: taxes, responsibilities or limitations to the right of free access that may affect the property. Should any conditioning factor of this nature exist, it is advisable to seek the help of an expert prior to purchasing the property. Should this not be possible, you should be fully informed of the scope of such factors. Verification may be carried out in the offices of the corresponding Property Register by requesting a "Nota Simple" (a document issued by the Property Register and in which all pending charges, taxes, etc., relative to the property in question are listed. Please note that this document is merely informative.) Notwithstanding, you will be informed by the notary of any pending charges and taxes at the time of signing the deed to the property. Remember: pay special attention during the reading of the deed and, if you have any doubts, do not forget to ask for further information!
By visiting the local Council, you will be able to obtain information about any planned development work that may affect the property, as well as information about the property's compliance with current urban planning regulations. Additionally, you will be able to find out if the property is up to date with applicable taxes and rates contributions. Remember: any outstanding charges of this nature may be automatically transferred to the new owner following the sale of the property.
The corresponding "comunidad de propietarios" (property owners association) will inform you of any outstanding communal charges. Notwithstanding, the vendor will be required by the notary to provide a Certificate, signed by the president of the property owners association, stating the existence or not of any such debts.
The supply companies responsible for providing the property with water, electricity and gas will provide you with information about possible outstanding debts related to these amenities. It is sometimes cheaper to resolve the debts of the previous owner than to contract a new supply.
Purchase commitment document and effects
Once you have chosen the ideal property, it is time to formalise a corresponding purchase commitment that is adapted to your circumstances and those of the property. There follows information relative to the consequences of the signing of a purchase commitment document with the vendor of the property.
- Purchase request
- Sale or purchase commitment
- Deposit document
- Purchase option
- Private sale document
- Public deed
It must be borne in mind that the type of document to be signed depends of the situation of the property, as well as any agreements that may have been established with the vendor. There is no regulation that requires the obligatory signing of any kind of document, this being left to the personal decision of the parties in accordance with any mutual agreements that they may establish. Nevertheless, the choice of document may result in different commitments or effects, in accordance with the applicable regulation.
Note: It must be borne in mind that the consideration given to a document is not determined by the title of the same, rather by its content and the obligations that have been agreed upon.
- A purchase request, merely expresses a desire to acquire a particular property. This type of document generates no commitments for either of the parties. Either party may withdraw from the agreement without obligation.
- By means of a sale or purchase commitment, either or both of the parties assume a commitment to effect the sale of the property. This type of document is usually employed in those cases which contemplate a pending circumstance and in such a manner that, should said circumstance fail to materialise, neither of the parties are bound to a commitment. This type of agreement is usually established as a promise of sale in determined circumstances. This type of document is associated to a variety of commitments, in accordance with the circumstances affecting the operation.
- By means of a deposit document an intention to buy and to sell is established. The property is reserved by means of a deposit. Such deposits, which are paid on account, generate a commitment, the unilateral non-compliance of which is usually regulated in the document itself.
- A purchase option document establishes a reservation on the property in favour of the purchaser and for the duration of the period established. Should the purchaser fail to acquire the property within the period and in accordance with the terms established, the deposit (or option price) is forfeited. It should be borne in mind that the signing of a purchase option document does not express an intention to purchase. Nevertheless, should the option fail to be exercised, the amount deposited is usually forfeited.
The above-mentioned documents may be encountered when dealing with the vendor, although, in the majority of cases, the following documents are of more common usage:
- Private sale document, This type of document is usually issued during the negotiations related to the property and prior to the formalisation of the public deed. Such a private document does not rest efficacy from the sale, which may be consummated with the delivery of the property. Nevertheless, the use of this type of document implies a certain risk with regard to third parties, given the non-existence of property register protection or the consideration of good faith in relation to the third party.
- The signing of the public deed of sale is normally carried out in unison with the delivery of the property and the payment of the full sale price. There is no requirement to modify any conditions agreed upon in the sale commitment, unless any such modification is jointly expressed by the parties. This document is required to inscribe the title-holder of the property in the Property Register and in order that the sale hold effect with regard to third parties. The costs associated with the intervention of the notary will depend upon the type of property and the existence of a mortgage.
Information to be provided by the vendor
Each Spanish Region is subject to specific regulations regarding the information to be provided by the vendor during the sale of a residential property. It is considered as standard practice, and independently of any consultations effected regarding the aforementioned specific regulations, that the following information, in accordance with the type of property to be acquired, be required of the vendor:
First sale of a property.
- Details of the developer and the constructor.
- Economic conditions: total price and the concepts included in the same.
- Essential characteristics of the residential property.
- Ownership and charges to which the property is subject.
- Administrative situation: municipal construction and occupation licence, as well as definitive qualification.
- Conditions of usage and maintenance.
- Guarantees with respect to payments made on account.
Viviendas en segunda o posteriores transmisiones.
The same regulations apply as in the case above, except that instead of identifying the developer or constructor, the vendor is identified.
Property being planned or constructed
When the sale of a property is effected while the property is still being planned or constructed, the vendor must supply the following:
- Availability of the plots, building project and construction licence.
- New building (in construction) declaration and statutes proposal.
- Forecast completion periods and delivery of the properties once finished.
