Note

Check for debts on a property in Spain before buying

§ 1Debts that stay with the home

A registry extract shows charges, but it does not show every debt. Some debts attach to a property by law, and a buyer can be asked to pay them even though the seller incurred them. The most important is the community fee for a unit in a building. The law says the acquirer of a unit answers with the property for the unpaid general expenses of the expired part of the current year and of the three previous calendar years. The wider checklist is in the rules on due diligence.

§ 2The community fee

The seller must also state in the deed that they are up to date with the general expenses, and the community’s credits are preferential. In practice this means that you should ask the administrator for a written statement of what is owed, and the seller should pay what is due before the deed or from the price. The details of the community’s role are in the community of owners chapter of this section.

§ 3Local property tax

The yearly local property tax is linked to the property. If the seller has not paid it, the local authority can claim it through the property. Ask for the last receipts, and ask your lawyer to confirm with the local tax office that nothing is outstanding. The costs section of this handbook explains how the tax is charged and who pays it in the year of sale.

§ 4Other possible items

Ask also about unpaid utility bills, which may need a final reading, about rubbish and other municipal charges, and about any special assessments the community has approved. A derrama voted but not yet paid is a practical risk. The question list in the rules on no-debt certificates shows what certificates to request.

§ 5How to protect yourself

Ask for the proofs before the deed. Put into the contract that the seller must deliver them, and that failure allows a retention from the price or a right to postpone the signing. Do not accept a verbal assurance. If the seller is a developer or a bank, ask for the same proofs, because the rule is the same.

§ 6After the deed

Keep the receipts of what is paid. Change the holder of the utilities and register yourself with the community and the administrator. Make a note of the date of the first fee you owe.

§ 7If a debt shows up later

If a creditor asks you to pay a debt from before the deed, tell your lawyer and check what the contract and the deed say about it. A seller who gave a false declaration may be liable to you, but pursuing that takes time, so prevention is much cheaper.

§ 8More on this topic

How the nota simple works explains the registry extract and how checking title works explains how to confirm the seller owns the property.

Encumbrances property Spain explains mortgages, seizures and other charges and the rules on the cadastre explains the cadastral reference and how to compare it with the registry.

The rules on the first occupation licence explains the licence that confirms a home can be lived in and the rules on the habitability certificate explains the regional document confirming minimum living conditions.

The rules on the energy certificate explains the mandatory energy performance certificate and the rules on the building inspection explains the periodic inspection of older buildings.

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