13 Jul The lawyer is indispensable when buying a home in Spain
The procedure for buying property in Spain is not complicated if you do it the right way. Since the realtor’s primary task in Spain is to bring buyers and sellers together without delving deeper into various legal issues regarding the home, you normally cannot make a property purchase without a lawyer by your side.
Remember that all documents relevant to a purchase are in Spanish. It is almost impossible for you as a private person without deep knowledge of Spanish to be completely sure that the deal is done correctly. We recommend that you, as a buyer, have an impartial lawyer who represents you throughout the entire buying process.
The lawyer’s role in the real estate deal
The lawyer checks whether there are deficiencies and errors in the property register, that the home is not encumbered with old loans or easements, that the home is really owned by the person claiming to be the owner and that no old bills are due for payment. The lawyer will also help you to apply for a Spanish personal identification number (NIE number) and to open an account in a Spanish bank. Without these two things, as a foreigner you cannot buy a property in Spain.
By hiring a lawyer and giving him a power of attorney for all aspects of a real estate transaction, you can sit back and let the lawyer take care of all the papers that need to be signed right up until the day you become the legal owner. The seller also almost always has a lawyer and the two work together throughout the deal. Furthermore, the lawyer ensures that you get new contracts with electricity and water companies and that these bills are sent to your bank for direct debit payments (domiciliación).
Many Spanish law firms have English- or Scandinavian-speaking staff. There are also several Scandinavian law firms along the coast that we can warmly recommend. Hiring a lawyer in a real estate transaction in Spain is to be considered an investment in security on your part. Normally, the lawyer’s fee is 1 percent of the purchase price.
Important things your lawyer checks:
- Is the seller the legal owner of the property?
- Does the size agree with the property register?
- Does the home have a mortgage or other debts?
- Are there embargoes or easements on the home?
- Are there unpaid fees?
- Is the seller permanently resident in Spain or not?
- Are taxes and fees paid by the seller?
- Does the seller have an energy certificate? (Law since 1 June 2013)
- That any expansions are done legally
- That there is a building permit (new development)
- That the seller provides a bank guarantee (new development)
- Establishment of the private purchase contract
- Signature of the deed in your name before a notary public
- Establishment of contracts for electricity and water in your name
