Property Purchase Deed in Ibiza (Spanish Notarial Title Deed)

What is the Escritura de Compraventa?

The Spanish Property Purchase Deed (escritura de compraventa) is the official property purchase contract signed at a Spanish notary's office during the final stage of buying property in Spain.

Although it is not strictly indispensable for the transfer of ownership, the Spanish Property Purchase Deed is necessary for registration in the Spanish Land Registry (Registro de la Propiedad) and is highly recommended to ensure legal certainty and proper property registration in Spain.

The Spanish notary certifies the terms agreed by the parties and oversees the formal completion of the property purchase process in Spain. 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.

Which Documents Must Be Presented?

The following documents and requirements are generally needed when signing the Spanish Property Purchase Deed (Escritura de Compraventa):

a) Buyer Requirements:

• 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 (mandatory), with valid 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 Requirements:

• Original or complete copy of the title deed (escritura pública) registered in the Land Register when we bought the property.
• Register Extract (called Nota Simple Registral) from the Spanish Land Registry, with updated information regarding ownership and encumbrances.
• Power of attorney for the sale, if the seller is unable to attend the signing and is represented by a third party.
• Original receipts of the latest municipal property taxes (IBI, Spain's annual local property ownership tax) and waste collection 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 by a mortgage, the outstanding loan must be repaid at or before completion of the sale.
• Original identity card or passport and 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 required to inform the purchaser whether a valid Certificate of Occupancy (Cédula de Habitabilidad) is available for the property or not. While it is not mandatory to present the certificate at the signing of the deed, its existence or absence must be disclosed by the notary.
• Energy Performance Certificate (EPC): A document issued by a qualified energy assessor and registered with the competent regional authority, certifying the energy efficiency rating of the property.

The Day at the Notary

The notarized purchase price is usually paid by certified bank checks issued by a Spanish bank, and the ownership of the property is transferred to the buyer upon 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, i.e. a simple copy of the escritura over to the buyer which allows to carry out administrative procedures such as setting up utility contracts, arranging insurance, opening direct debit payments, and proving ownership while the final registration process is being completed.

The Inscription at the Spanish Land Registry

As a next step, the public property purchase deed (Escritura de Compraventa) prepared by the Spanish notary, together with proof of payment of notary fees and the corresponding Property Transfer Tax (ITP) or VAT, must be submitted to the Spanish Land Registry by the purchaser or a legally appointed representative. In general, the corresponding taxes must be declared and paid within 30 working days of signing the deed, after which the registration process can be completed. 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. Finally, the new property owner receives the officially registered and stamped authorised copy of the deed (Copia Autorizada).

Congratulations!

Once the registration process has been completed, the buyer can fully enjoy their new home in Spain with the peace of mind that ownership has been legally secured and protected. While the legal formalities may seem complex, the combined work of the notary, Land Registry, professional advisers together with an expert agency like inmobiliaria LAS ANCLAS ensures a safe and transparent property purchase process, allowing the new owner to focus on what really matters: enjoying their new property and the Mediterranean lifestyle.

All information is supplied without liability!