Note

Buying property in Spain with friends or family

§ 1Who is on the deed

When several people buy together, the deed names each of them and records the share each holds. The notary checks the identity and capacity of every party and examines any power of attorney, so every co-owner must be able to sign or be validly represented. The first rule is that the deed should describe what you actually agreed, because it fixes the shares and changing them later is a new transaction.

§ 2Match shares to money

Shares usually follow the money each person puts in, but not always. If one friend pays more of the price and the other more of the costs, decide how that translates into shares and write it down. Notaries prefer payment by bank transfer, recorded in the deed, so keep each person's payment traceable. Cash passed between friends is the kind of thing that causes disputes years later.

§ 3The agreement you need

A co-ownership agreement is the most useful document in a shared purchase and the one most people skip. It should cover how costs are shared, who decides on repairs and letting, how each owner may use the home, how a share may be sold and to whom, and what happens if an owner stops paying. It should also deal with exit: how a share is valued, who has the first right to buy it and how long the process takes.

§ 4Death, divorce and falling out

These three cases are where shared ownership is tested. On death, the share passes under the law that applies to the estate and any will, which may not match what the co-owners expect. On divorce or separation, a share may be affected. If owners fall out, there must be a way to leave. Ask a lawyer about each before you sign, and put the answers in the agreement.

§ 5Choosing advisers

The notary gives free and impartial advice, but does not act for any of you. Take legal advice before the reservation, and consider separate advice for each co-owner where interests could diverge. A lawyer can then draft the agreement and review the deed. See the options for buyers for the other ways to hold a property.

§ 6When some owners are abroad

Co-owners often live in different places. If one of you cannot attend the signing, a notarial power of attorney can be used, as buying without being in Spain explains. The power should be narrow, naming the property and the limits, and it should be given to a person all owners trust.

§ 7When a company is considered

Some groups consider a company to hold the property, in which case the owners hold shares of the company and not of the home. That changes tax, administration and exit, and the choice depends on your plans. Using a company to buy explains when it is considered and why a quick decision is a mistake.

Legal note. How the process works in general. It is not legal advice, and it never replaces an independent Spanish lawyer acting for you.