Investing in property

MD lawyers and solicitors Office has a special department that deals with residential and commercial property law. Our aim is to provide our clients with a high quality of service. We provide our clients with a full Spanish residencial and commercial property conveyancing/legal service on new and resale properties. We also provide a full planning law and landlord and tenant law service.

Our property team of lawyers are fluent in English and aim to provide a Spanish legal service explained in clear English that our clients can understand. We understand that the purchase of a Spanish property is an important personal decision, one of the biggest decisions you will make in your life, which will inevitably entail a large capital investment and a considerable amount of time and money searching for the right property. Which is why MD Lawyers will work for you to ensure this search and investment is all worthwhile.

You should be informed of all your rights before signing any contract or agreement when buying a new property.
You need to know the following information:

• Check with the Spanish Land Registry whether the constructors or the developers, who are the sellers of the property, are actually the owners of the land and if there are any encumbrances or liens on the property.



• You will sign a contract with the constructor while your property is being built or just before signing the Title Deeds. Unfortunately, it is common to find illegal clauses in this type of contracts, the most important clauses are:



• The purchase price on the contract must be the final total price, including the V.A.T. The AJD tax.



• The total useful area, it is not enough to mention the built area only.



• The specific completion date.



• The contract must specify that the Bank will grant the required bank guarantees in due course for the amounts handed on account.



• The Builder must give you a copy of the Architect’s project approved by the local Town Hall plus a copy of the building licence and the cédula urbanística (planning certificate).



• You are free to choose any Bank you like, it does not necessarily has to be the one proposed by the Developers and you should not under any circumstances have to pay any extra costs for this change.



• You should get the habitation certificate of the house; with that document you can get contracts for the suppliers companies and get water and electricity.

The inscription on The Land Registry is a special process that is dealt with by this lawyer’s office, solving any mistake that the titles deeds could include. The inscription offers a legal security that all that appears in the Land Registry is considered absolutely correct. This is considered by our legislation as third of good faith, and when such a person registers the property to the name of the owner, this property cannot be claimed by anyone else, therefore the ownership of the property remains confirmed for the rest of the people.

The documents related to the property purchase, real rights (mortgage, charges, rents, and any judicial or administrative resolution that can affect it), can also be stated in the Land Registry.

Before you purchase a property we check everything within the Land Registry, and once you have purchased the property, for your own safety it is necessary to register the new ownership. On the day of the notary MD lawyers check the Land registry for any changes that may have occurred during the process to the final purchase. The note order given by the notary gives a special guarantee: no related action can be registered in the Land Registry during a certain time. This is to avoid the double sale and that a third of good faith can appear.    

Choosing a second hand property can be easier than choosing a new one. Since the building is already constructed, you can check it before buying. Here are general guidelines on aspects of real estate purchase which can help you to understand how it works in Spain, but it can not be substituted for proper legal advice. It is important to look for professional advice in order to avoid misunderstandings and possible frauds, and at the same time, relieving you of the worry and stress associated with all the procedures and paperwork.

We can give you professional advice if you are purchasing an apartment or duplex or anything which is a part of a larger complex, Keep in mind that these purchases will be subject to the Spanish Law of Horizontal Division. According to this law, every apartment or villa-owner has the co-property of the common elements of the building complex, so every neighbour has to share the expenses to keep it in good condition.

BEFORE SIGNING ANYTHING:
Once you have decided which property really suits you, it is essential you check the following documentation before signing the contract or making a deposit to reserve the property:

• Your solicitor will ask for a simple note at the Property Registry, so that you can get the full details of the owner, the exact size of the property, and whether the property is free of charges or is otherwise subject to mortgages, restrictions of use, court orders for seizure.


• Check whether the house is rented out as the Spanish rental law protects the tenants.



• Your lawyer will ask the President or Administrator of the Community of Property Owners, whether the monthly community fees are paid or not, since the buyer should pay any pending fees. Indeed, the seller must provide you with a certification with all the payments updated.



• You should also check on the paid up of the IBI.



• A planning report will be necessary in order to see if there are still any charges on the development of the property and if any new general development will affect the property, specially if it is placed in rustic land; also it will hold information in order to explain if there is any action to demolish the house.



• Your lawyer will hold a couple of taxes that the seller will have to pay (as Capital Gains tax on land). If the seller does not pay them, the property will be used to guarantee the debt and the town hall will act in order to recuperate it against the property although there is a new owner.

We understand that once you have found the right property you need to know that you have the protection of independent lawyers who will carry out thorough legal checks on the property and ensure the conveyance goes through efficiently and safely, This is the servi9ce MD Lawyers specialize in.

If you have any legal enquires or would like to arrange an initial no charge meeting with our Spanish property lawyers please email us xInfo@monllorydiazabogados.com or call our office on (0034) 965.13.54.13.