Complete Guide for Buying and Selling Properties in Spain

The sale of real estate properties is an exciting process that can be done independently. However, the excess time spent on procedures and management can make this initial excitement fade quickly... but soon you will see how useful and beneficial it is to leave it in the hands of an expert team. Either way, in this guide, we explain in 3 parts what you are going to pay, what you are going to need, and where you can request it so that the purchase is completely safe and of quality. Go ahead!

Part 1: What to pay. Costs associated with the residential real estate purchase

As the owner of a home or land, you must be aware of the associated costs that the subsequent sale will entail, including property taxes, notary and registration fees, municipal capital gains, and the commissions of the real estate agency if you decide to use their services. Let's see what each of them consists of:

• Property taxes: These taxes vary depending on the location and type of property.
• Fiscal Capital Gain: It is a tax dependent on the Tax Agency that taxes the capital gain obtained from the sale of a property.
• Municipal Capital Gain: Some areas impose a tax on the increase in land value.
• Energetic certificate and habitability certificate if not previously obtained before selling.
• Community certificate if they exist in the property, which will have a minimum cost for obtaining said certificate.
• Real estate agency fees: The agency's fees for their sales, management, and advisory work will apply. Depending on the area, these costs may be shared with the buyer, but in any case, the amount of the fees will be agreed upon at the beginning of the process and always included in the final public selling price of the property.

On the other hand, as a buyer, and apart from the mortgage (if applicable), you must consider not only the purchase price but also the following costs associated with the purchase: property transfer taxes or VAT, notary and registration fees, and possible fees related to the property, such as cleaning, decoration, and relocation if required:

• Purchase price: This is the main cost and must be adjusted to your investment budget and, if applicable, to the mortgage.
• Property transfer taxes or VAT: Depending on the property and its location, you could be subject to these taxes.
• Notary and registration fees: These costs are essential to formalize the transaction and update the property registry.
• Possible related fees: In the process of acquiring a home, it is crucial to consider various additional fees that may arise, beyond the costs directly linked to the purchase. These elements, although not directly related to the purchase process, are essential to ensure a successful and comfortable transition to the new property... Count on them because sooner or later... they will appear! ;)

Part 2: What to bring. Documentation associated with the residential real estate purchase

Documentation plays a crucial role in the purchase process, both for the seller and the buyer. On the day of the sales contract, the seller will have to provide all the necessary original documentation, which the notary will already have to prepare the deed.

For the sale, it is necessary to have the property deed, the simple note from the registry, the paid tax receipts, and, in the case of a home, the energy certificate and the habitability certificate:

• Property deed: If the Notary of the locality where it is notarized requests it, not in all cases is it necessary. The property deed proves ownership of the home or land and is obtained through the notary.
• Simple note from the property registry: Provides updated information about the property, including ownership and possible charges.
• Paid tax receipts: Ensures that all local taxes are up to date and is essential to demonstrate the tax situation of the property.
• Energy certificate: Required for homes, shows energy efficiency and is issued by a certified technician. For more information about the energy efficiency certificate on our blog.
• Habitability certificate: Essential for the sale of homes, confirms that the property meets the habitability requirements and is obtained through the City Council in case it is not available.
• Community certificate whose payment is made at the time of sale.
• Utility bills, to facilitate the change of name and account to the buyer.

In Spain, the habitability certificate is a document that certifies that a home meets the minimum habitability and health conditions required by regulations. Its validity is usually about 15 years, but this period may vary depending on the specific regulations of each autonomous community. After that period, it is necessary to renew the habitability certificate through a new inspection that verifies that the home still meets the established requirements.

Part 3: What may be missing. Process of Obtaining Documents associated with the residential real estate purchase:

As we have seen, there are numerous documents related to the purchase of a property. Some of them, as you may already be thinking, you do not have, or you have lost them, or you have never requested them, or it is even possible that you do not know where you kept them. Don't worry: it's normal. And it has a solution.

Obtaining these documents, yes, involves visiting the notary to obtain the deed, the property registry for the simple note, and qualified professionals for the energy certificate and habitability certificate.

Obtaining Copies of Deeds:

If you are the seller, it is likely that you already have in your possession several documents that certify the ownership of the property. However, and especially in the case of homes acquired many years ago, it may be necessary to obtain a copy of the deeds.

This process is carried out through the notary where the transaction was formalized. The copy you request can be a "simple copy" or "authorized copy," depending on your needs. The property owner or their legal representative can make this request, and as we mentioned, if you do not know the notary who formalized the protocol, we can request the property registry to inform us about it.

Don't remember which notary formalized the property deeds? If you do not know or do not remember the notary where the transaction was formalized, or if this notary has already ceased activity, the property registry of the area can provide key information about its current location.

Don't worry if the notary is no longer active: notarial documents must be kept for a minimum of 25 years from the date of signing, and if the notary in question is no longer active, you just need to inquire at the notarial college about who currently holds its protocols and contact them to request your simple copy of the deeds.

When requesting your simple copy, you may need to provide specific details about the transaction, such as the date of purchase. The fee for the simple copy may vary and is subject to local regulations. As always, asking about fees at the beginning of the consultation is always the best option.

As for querying data in the property registry, you must take into account that obtaining a Simple Note is essential to know the legal situation of a property. Anyone with a legitimate interest, such as potential buyers, sellers, lawyers, or financial entities, can request it. A fee must be paid, the amount of which may vary depending on the Registry and the information requested, and provides details about ownership, charges, limitations, transaction history, and more, being a key resource in the decision-making process in real estate transactions in Spain.

Additional Documentation in the Real Estate Purchase Process:

In addition to the mentioned documents, there is other relevant documentation that may be necessary for the buyer in the process of purchasing a residential property, depending on the nature of the property (house, apartment, land, and this, according to its classification) and the local regulations of each municipality and its relevant general urban development plan.

Some additional elements to consider for the initial information and valuation procedures would be the property plans, which, if not available, can be commissioned to a qualified professional architect or technician, as well as checks in the General Urban Development Plan (PGOU).

If the PGOU of the municipality is not accessible to the public, you can request information from the city council or the competent authority to obtain information about the classification of the land and applicable restrictions.

And we must not forget that for verifications regarding the price, it is essential to check the cadastral data: The cadastre is the administrative registry that collects the description of real estate throughout Spanish territory. It provides information about ownership, surface, and property limits through the cadastre, which is the cadastral reference.

Other documents that may be requested depending on the geographical area are the Certification of Debts and Charges, the Occupation License, and the Certificate of No Urban Infraction.

It is essential to understand that specifications and regulations may vary depending on the autonomous community. For example, in the Basque Country and Navarre, there are specific tax systems, and cities like Barcelona may have particular regulations regarding tourist rentals. Local expert advice can be crucial to comply with the specific regulations of each region.

So... What Professionals Are Involved in a Real Estate Purchase Process?

In the complex process of buying and selling properties, the participation of various specialized professionals is essential to ensure an efficient and legally sound development. These experts play fundamental roles:

 

• Notary: Responsible for formalizing the transaction through the public deed and verifying the identity of the parties involved. Their actions include collecting the necessary documentation, supervising the signing of the deed, and registering it in the property registry. 
• Real Estate Agent: Facilitates the transaction by acting as an intermediary between the buyer and the seller. They are responsible for marketing the property, providing advice on the real estate market, and facilitating negotiations and the complex and varied advice throughout the process on legal, fiscal, and commercial matters. In our case, we also manage the entire process ;) 
• Lawyer or Legal Advisor: Provides legal advice to ensure that the transaction complies with regulations and protects the client's interests. They review the documentation, verify the legality of the operation, and advise on possible legal contingencies. 
• Certification Technician: Evaluates the energy efficiency of the property and issues the corresponding certificate. Their actions include conducting necessary inspections and issuing the certificate essential for the sale. 
• Architect or Other Technicians: Their participation may be necessary to obtain detailed plans of the property. They carry out technical evaluations and provide additional documentation according to the specific needs of the process. Together, these professionals ensure a smooth and secure development of real estate transactions.

The involvement of real estate and legal experts guarantees a successful transaction without legal complications in the future. Whether you decide to carry out the purchase independently or opt for the professional intervention of a real estate agency, the key is to be well-informed and have the support of specialists in the field.

The purchase and sale of properties in Spain is a complex process that involves multiple facets, from financial aspects to detailed documentation and the involvement of various professionals. This comprehensive guide provides an overview, but once again, we emphasize the importance of seeking specific advice based on the location of the property and individual circumstances. We are here to help you!