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Public Sales – Purchase Deed Ibiza

by lasanclas, February 21, 2014

escritura de compraventa

GENERAL

The so-called “escritura” is a purchase contract signed before a notary. It is not an indispensable requirement for the transfer of ownership, but necessary for the registration in the Spanish Land Registry (Registro de la Propiedad) and also highly recommended.

The Spanish notary certifies what the parties have laid down. In principle, he is not required to give detailed legal advice.

The notary has previously received information from an updated land register extract of any encumbrances of the object in question and whether the seller is actually registered as the owner.

Then he sends the key data of the new deed to the Land Registry, which imposes a ban on other entries. This ensures that temporarily no other sales-purchase deeds regarding this property can be registered in the Land Registry.

 

What is required or has to be presented at the date of the signing of the public sales-purchase deed:

a) BUYER:

– Certified bank check of the amount of the outstanding purchase price (the bank should be informed at least 2 working days before the notary appointment about the check(s) to be issued)

– In case of payment to a non-resident seller a separate check of 3 % of the total purchase price has to be presented (this is a down payment of the seller’s capital gains tax, which the buyer, instead of the seller, pays to the Spanish tax office).
Your real estate agent or lawyer will inform you about the detailed sums of the individual checks.

– Proof of payment of the down payment

NIE number

– Identity card or passport

– Appointment of a lawyer or gestoría for future payments of the land transfer tax, capital gains tax of the seller, registration in the Land Registry, Cadastre etc.

TIP:

– In Spain future tax payments are dealt with on the principle of ” duty to deliver”, which means the owner will not receive notifications for due payments.  Therefore instructing a lawyer or a gestoría is highly advisable.

 

b) SELLER:

– Original or complete copy of the title deed (escritura Pública) registered in the Land Registry

– Register Extract (nota información registral) from the Spanish Land Registry, with information regarding ownership and encumbrances

– Power of attorney for the sale, in case the seller himself is not the owner of the property.

– Original receipts of the latest municipal property tax (IBI) and possibly waste charges (basura)

– In case of purchase of a property that is part of a communal complex, an original certificate must be obtained from the President of the respective owners’ association, which confirms that the community has no debts to third parties and that the seller is up to date with the payment of the community fees.

– If the property is encumbered debtors must be present to be repaid before the contract is signed by the buyer

– Original identity card or passport

NIE number

– Keys to the entire property

– Contracts or latest bills of utilities such as water, electricity, etc. with the corresponding payment records

– since 27 June 2018 notaries have been obliged to check the existence of the certificate of occupancy (Cédula de Habitabilidad)

 

The notarized purchase price is usually paid by certified bank checks made out by a Spanish bank and the property is transferred to the buyer only against full payment.

The buyer delivers the checks to the seller in the presence of the notary, and the seller in turn hands the keys over to the buyer. A copy of the checks is added to the escritura, which serves as an official receipt for the payment of the purchase price.

Initially the notary hands a so-called copia simple, ie. a simple copy of the escritura over to the buyer.

As a next step, the public sales-purchase deed (escritura de compraventa), elaborated by the notary, and proof of payment of notary fees and the added value or real estate transfer tax must be submitted to the Land Registry by the purchaser or a legally appointed representative.

Only now the Registry officer will undertake the registration of the change of ownership.

Registration may take several weeks or months, but meanwhile the register is blocked by a preliminary note to prevent other dispositions by third parties.

At last the new property owner receives the stamped copia autorizada.

This post is also available in Deutsch and Español.