Planning to buy a house in Spain as a foreigner? We explain what you have to check before buying a house in Spain to avoid surprises, scams and legal problems in the future.
For those arriving in Spain from another country, the process can be even more complex: the legal system is different, the formalities are numerous, the technical terms can be confusing. And the scams can be different from those in your country. At MBT Abogados, as a law firm in Barcelona specialized in advising foreigners, we offer comprehensive assistance at all stages of the purchase.
The purpose of this post is also that you have clear what are the necessary documents to buy a house in Spain being a foreigner. Below, we share the 7 things you should check before buying a property in Spain:
1) Verify the condition of the house
Before making any decision, it is advisable to assess the state of conservation of the property. For this, the ideal is to hire a technical architect to visit the property and issue a professional report. This report may include observations on electrical installations, plumbing, structure, humidities or renovation needs.
In the case of apartments or apartments, it is also important to check the general condition of the building, especially if it is old. For this purpose, the latest Technical Building Inspection (ITE, in Spanish), a mandatory document for buildings of a certain age, can be consulted.
2) Verify the identity of the owner
It is essential to confirm that the person selling the property is actually its legal ownerand that it has the legal capacity to sell. This information is checked in the "Registro de la Propiedad" (the Spanish Land Registry), requesting a "nota simple registral".
In addition, if there are several owners, all must agree to sell. If the seller is a married person, in community of property regime, the consent of the spouse is also required.
3) Verify that there are no debts
Before buying, it is crucial to verify if the property has registration charges o related debtssuch as mortgages, liens, or debts with the community of owners. These charges can pass to the new owner if they are not previously cancelled.
This information is also obtained with the simple registry note, and can be complemented with the debt certificate issued by the community of owners.
4) Verify the registry description, limitations and easements.
It is necessary to check if the description of the property in the Registry coincides with the physical reality: area, boundaries, type of use, etc. It is also important to know if there are easements (e.g., a neighbor's right-of-way) or limitations on use.
These characteristics may affect the value of the property or restrict its use, so they should be carefully analyzed.
5) Verify the urban planning or habitability limitations.
Some properties may be affected by urban limitations that prevent certain renovations or, in extreme cases, condition its future use. For example, a property may be located in an area where the City Council foresees significant changes, such as a future redevelopment.
It is also essential to check whether the home has the "cédula de habitabilidad" , a document certifying the property meets the minimum requirements for habitation.
6) Check the text of the reservation, earnest money and purchase and sale contracts.
These contracts create legal obligations, and should be reviewed by an attorney before signing. The reservation contract blocks the property for a certain period of time. The arras contract usually involves an economic signal, and may entail penalties in the event of non-compliance. Finally, the contract of sale establishes the final conditions of the operation.
7) Obtain the necessary documentation for the signature at the notary's office.
Before signing before the notary, it is necessary to prepare several documents: updated nota simple, cadastral certificate, certificate of debts with the community, proof of payment of taxes, among others. Although many times the real estate agency is in charge of gathering them, the buyer must supervise that everything is correct.
Avoiding scams when buying a home in Spain
The purchase and sale of a property is a complex operation that involves multiple documents, intermediaries and legal requirements. For this reason, it is also essential to know the most frequent scams, especially if you are a foreigner or a newcomer to Spain.
Here are some common fraudulent practices so that you can identify them in time and avoid unpleasant surprises:
False owners
People who present themselves as owners of the property without being so, using false or manipulated documentation.
How to avoid it: Request a "nota simple registral" updated to verify actual ownership.
Sale with hidden debts
A property is sold with mortgages, liens or unpaid debts (such as IBI or community fees), which are passed on to the buyer if they are not cancelled.
How to avoid it: Verify the charges in the Land Registry and request debt certificates.
Double sale of the property
The seller signs contracts with several different buyers and collects down payments without signing a deed with any of them.
How to avoid it: Do not deliver sums of money without legal backing and register the deed as soon as possible.
Agreement to pay part in black
The seller proposes to under-declare the real value in order to pay less tax, requesting a portion in cash "on the outside".
Risk: This practice is illegal and can lead to tax penalties and legal complications.
Urban planning or habitability problems
Dwellings built in protected areas, without a license or with pending demolition orders.
How to avoid it: Request urban planning information from the City Council and verify that the property has a certificate of occupancy or occupancy license.
Fake developers or real estate companies
Non-existent or fraudulent companies that sell properties "off plan", receive advance payments and then disappear.
How to avoid it: Verify the legal existence of the company, consult opinions and check that the project has a building permit.
False contracts or deeds
Impersonation of documents or even notaries to give the appearance of legality.
How to avoid it: Review everything with a lawyer and make sure that the signature is made before an authorized notary.
Having professional advice throughout the process is the best way to protect yourself against these situations. At MBT Abogados we are used to detect irregularities and protect the interests of our clients from the first step.
Legal and technical support service
At MBT Abogados we offer a complete advisory service in the purchase of properties in Spain. Our team accompanies the buyer from the initial search to the signing before the notary, including:
- property search in Barcelona and surrounding area
- negotiation of the purchase price choice of notary
- preparation of tax returns
- accompaniment at the time of signing
- any other function and advice necessary for the successful completion of the operation
It is important to clarify that the choice of the notary's office that will carry out the transaction is up to the buyer. The bank that grants the mortgage prefers that it be their usual notary's office, because it makes the work easier for them. But the final decision is up to the buyer.
If you consider that you need assistance in the purchase and sale of a property, do not hesitate to contact us. We are a law firm in Barcelona, specialized in global taxation, investments, and asset relocation. We also offer other services related to real estate, such as assistance in obtaining a mortgage, advice on buying a property in Spain from abroad. Here you can find more information about these services.
