Do you dream of owning your own home under the Spanish sun? Buying property in Spain is a wonderful prospect for many, but the legal and administrative process differs significantly from that in Belgium or the Netherlands. Without thorough due diligence beforehand, you run the risk of unpleasant and costly surprises.<\/p>\n\n\n\n
In this article, we discuss the three most common problems that buyers encounter in practice, including the risks and the specific consequences.<\/p>\n\n\n\n
The number one problem when buying property in Spain is administrative irregularities relating to the property. This manifests itself in various ways:<\/p>\n\n\n\n
Anyone who buys a flat or a house in a communal residential complex automatically becomes a member of the Association of Co-owners (the Comunidad de Propietarios<\/a><\/em>). This entails specific risks that often only come to light following a thorough examination of the minutes of the Annual General Meetings (AGMs).<\/p>\n\n\n\n Hidden structural or legal disputes regularly crop up in these minutes. Examples include ongoing issues such as unauthorised openings in party walls or the unauthorised routing of pipes through communal parts of the building.<\/p>\n\n\n\n In practice, salespeople often claim that such problems were resolved a long time ago, but an official, written confirmation of the community manager<\/em> (the property manager) is essential for verifying this. If this is not clarified in good time, it is necessary to include a specific indemnity clause in the purchase contract to protect you, as the buyer, legally and financially against claims or repair costs.<\/p>\n\n\n\n <\/p>\n\n\n\n Buying a new-build property or a property \u2018off-plan\u2019 (off-plan<\/em>) is popular, but in Spain it entails a specific and significant financial risk in the form of the so-called bank guarantee (Aval Bancario<\/em>) is missing.<\/p>\n\n\n\n Under Spanish law, property developers are obliged to safeguard the deposits paid by the buyer by means of a specific bank guarantee or insurance policy. Should the developer go into liquidation, halt construction or fail to hand over the property within the agreed timeframe, this guarantee ensures that you will be refunded your deposits, including interest.<\/p>\n\n\n\n In practice, some developers try to circumvent this obligation or make the guarantee available too late. As a buyer, without an individual bank guarantee, you will be left completely empty-handed in the event of the developer\u2019s bankruptcy. Checking this document and actually obtaining it before any substantial sums are transferred is an absolute must in any new-build transaction.<\/p>\n\n\n\n Here you will find a step-by-step guide to buying a new-build property in Spain.<\/a><\/strong><\/p>\n\n\n\n Many Belgian and Dutch buyers are in the dark about the division of responsibilities in Spanish property transfers<\/sup>. In the Benelux, the notary is the key figure who proactively scrutinises the transaction<\/sup>. In Spain, things are different<\/sup>. The Spanish notary is an impartial public official (funcionario p\u00fablico<\/em>)<\/sup>. His role is passive: he verifies the identity of the parties<\/sup>, checks whether the payment has been made<\/sup> and draws up the official deed of sale (Escritura<\/em>)<\/sup>.<\/p>\n\n\n\n However, the Spanish notary carries out no<\/strong> in-depth investigation into planning irregularities, hidden debts or the accuracy of the dimensions. This crucial gap in the investigation must be filled by an independent solicitor. Whilst the notary acts as a neutral arbitrator, the solicitor acts as your personal advisor, defending your interests exclusively and highlighting the risks before you sign the final deed.<\/p>\n\n\n\n3. The absence of a bank guarantee for new-build properties<\/h3>\n\n\n\n
The role of the Spanish notary<\/h3>\n\n\n\n