Buying or selling a property is a complex legal transaction, with significant legal consequences for both parties. Yet many people in Spain still sign private sales or purchase contracts without consulting first with a lawyer. In this week’s article, we explain why it is essential to have a lawyer to review the purchase contract during the conveyancing process.
The mistaken belief that the estate agency replaces the lawyer.
Estate agencies can play an important role in any purchase or sale. Helping the seller present the property attractively. Producing videos and photographs. Organising viewings. Etc. In short, they are often key in connecting buyers and sellers. Many agencies carry out this role with great diligence and professionalism.
However, we must not forget that an estate agent’s job is not to provide legal advice. Even if both buyer and seller share the same goal – completing the transaction – their interests are naturally opposed. For this reason, an estate agency can never truly advise both sides at the same time without entering into a clear conflict of interest.
The purchase contract: the big forgotten step.
Very often, signing the contract is treated as a mere formality. Nothing could be further from the truth. Regardless of whether it is called a “reservation”, “deposit agreement” or “purchase option”; these documents generate immediate and concrete legal obligations for both parties.
It is also very common to use standard contract templates that fail to reflect the specific features of the property or the personal circumstances of the parties. Buying a detached house is not the same as buying a flat in a shared building. Nor is urban land the same as rustic land. One buyer may need a mortgage, another may not. One property may have all its land registry and cadastral data matching the physical reality, another may not. Every deal has its own nuances, and a poorly drafted contract can leave one or both parties unprotected.
Real consequences of signing a purchase contract without having it reviewed by a lawyer specialised in property law.
Here are some real examples from cases we’ve handled at our firm:
.- A seller signs a contract agreeing to deliver the property with a valid occupancy licence, unaware that the septic tank is not compliant. The Town Hall refuses the licence and demands the seller either connects to the mains sewage system or replaces the septic tank (both potentially costing tens of thousands of euros).
.-A buyer signs the contract without making it conditional on mortgage approval. Later, the bank denies the loan.
Depending on the contract terms, the buyer may lose the deposit, or the seller may be forced to return it in double.
Conclusion.
Having a lawyer review the purchase contract is essential. Many clients come to our firm after having signed a reservation, deposit, or purchase contract, only to run into avoidable issues. With proper legal advice beforehand, most of these problems could have been easily prevented. If you are planning to buy or sell property in Spain, don’t hesitate to contact us.
The information provided in this article does not constitute legal advice but is intended for general informational purposes only.
Carlos Baos (Lawyer)
White & Baos.
Tel: +34 966 426 185
E-mail: info@white-baos.com
White & Baos 2025 – All Rights Reserved.
