SUMMARY OF THE ARTICLE
1.- Selling in a rising market does not remove the legal risks.
With property prices at record highs, many owners put their home on the market, and even sign a reservation contract, without knowing their exact legal situation. Not having the necessary documentation in place can cause delays or even put the sale at risk once a buyer appears.
2.- What documentation is needed to sell a property in Spain?.
A number of checks need to be carried out. Whether:
.- the Land Registry and Cadastre reflect the true state of the property
–there are undeclared elements, such as a swimming pool,
.-there is a valid Occupation Licence, any planning infringements, and
.-the water and electricity supplies are permanent.
3.- A prior legal review, the best way to avoid unpleasant surprises.
At White-Baos Lawyers we offer a pre-sale legal review service. We identify and resolve these issues in advance, speeding up the process and avoiding last-minute problems. We also review any agreements signed with estate agencies before they are signed.
Selling a property in a market with prices at record highs may, at first glance, seem straightforward. However, this is not always the case. At our firm, we frequently come across owners who have already contacted a real estate agency. And who may have even signed a reservation contract, without knowing the exact legal situation of their property. This can create serious problems further down the line. In this week’s article, we look at why it is worth gathering the documentation to sell a property beforehand, rather than after a buyer has already appeared.
Land Registry and Cadastre. Does what exists match what is registered?.
It is worth starting with the basics. Requesting a simple extract from the Land Registry allows you to check ownership. Any outstanding charges or mortgages. And, above all, whether the registered description matches reality. It is common for extensions, or even a swimming pool, to have been carried out without these changes being recorded at the Land Registry/Cadaster. Discrepancies between what has been built and what is registered can complicate the sale. Or even cause the buyer to withdraw at the last moment. This review also helps anticipate whether it will be necessary, or advisable, to update the property’s description, through an architect’s report, etc.
Responsible Declaration of Occupation. Planning reports.
When buyers are properly advised, it is common for them to request municipal certificates regarding the property’s planning status. And confirmation of whether any planning infringement proceedings are open. Obtaining these reports can take months. For this reason, it is usually advisable to request them in advance, even before a buyer has been found.
The same applies to the former “Occupation Licence / Habitation Certificate” now called the “Responsible Declaration of Occupation”. In many cases, obtaining it requires the property being connected to the municipal sewage system, or having a septic tank that meets current regulations. It is advisable to try to get ahead of these procedures, as they can sometimes be very slow.
Water and electricity supplies.
Another aspect that is often overlooked is the status of the utility contracts. Both for the main property and for any annexes, such as storage rooms or garages. It is not uncommon to find provisional, works-stage contracts that were never formally regularised. Knowing exactly what the situation is avoids last-minute surprises, for both seller and buyer.
Agreements with Real Estate Agencies.
In addition to the above, before signing any agreement with a Real Estate Agency, it is worth reviewing its content carefully. That the agency’s fees only become due if the sale actually goes through. That the agency is not authorised to sign documents on your behalf, without these having been reviewed beforehand, nor to receive any sums of money, etc.
Conclusion.
Gathering the documentation to sell a property in good time does not only avoid unpleasant surprises. It can also considerably speed up the process once a buyer appears. At White-Baos Lawyers, we offer a pre-sale legal review service, designed precisely to identify and resolve these issues in advance. If you are thinking of selling your property, do not hesitate to contact us.
The information provided in this article is not intended to be legal advice but merely conveys information relating to legal issues.
Carlos Baos (Lawyer)
White & Baos.
Tel: +34 966 426 185
E-mail: info@white-baos.com
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