If you are thinking of selling your Spanish property, it is always sensible to have your house in order. Naturally, your house needs to be as presentable as can be but in times of a deflated (or resurgent) market, it’s just as sensible to tidy and collate the paperwork so that it is ready for presentation upon request. Why? It saves time and delay, fosters confidence and good faith as well as assuages any detrimental hesitance or doubt which Mr. Prospective-Purchase might otherwise have had. Below, I detail what documents ought to form part of your A-4 ring binder ‘Seller’s Pack’.
As property owners you will be au fait with the Holy Grail of Spanish property law, namely the escritura pública (Title deed). Amongst other things, the deeds confirm the titleholder, whether the land is urbanaor rustica belt, a description of the property, its size and general whereabouts. If you do not have the original escritura, perhaps because your bank does, you can always obtain an authorised copy from the notary for a negligible fee.
As some of you will know, title deeds are not necessarily the only escritura (deed) you might have. For example, if you have renovated the house, say by adding an extension or excavating a pool, you might have sworn a deed of New Works (escritura de obra nueva) before the notary so that the Property Registry can amend its records. If you have but haven’t, it is wise to organise the same in order to ensure that there are no deficiencies in the paperwork, apparent or otherwise, as will require rectifying at a later date. This will help to assuage any concerns Mr. Prospective-Purchaser or his lawyer might otherwise have had and avoid unnecessary delays further down the line. However, if you would rather wait until you have a firm offer on the table, the very least you should do is collate the building licence applications, the licence themselves as well as the architect’s signing off report and have an idea as to the likely costs and tax implications of the deed as needs to be signed.
Further, it does no harm to obtain a nota simple i.e. an up to date summary of the key parts of the title deeds, from the Property Registry. A nota simple will confirm whether any debts are registered against the property – always an issue for a prudent prospective purchaser. Admittedly, Mr. Prospective-Purchaser's lawyer will obtain a nota simple as a matter of course, but it can only enhance your chances of a sale if you already have one to hand.
You will also want to make sure that you are fully up to date with paying your annual local rates (IBI) and obtain receipts for payment. Indeed, it is good practice to have receipts for the previous five years. Importantly, the IBI receipt will also confirm your property’s Land Registry (catastro) reference number. This is extremely helpful as it will enable Mr. Prospective-Purchaser or his lawyer to obtain a print-out plan of the property’s precise location, dimensions and square meterage as registered by the Land Registry.
Pitiful though it sounds, for a lawyer there is nothing quite as satisfying or impressive as having the Property and Land Registry’s records matching each in other in every material regard. However, if the Registries’ records do not match the other, as if often the case, your lawyer will advise what steps need to be taken to rectify the discrepancies and what costs and taxes will accrue.
Similarly, it is good practice to collate all your utility bills, including telephone and internet, and receipts in order to give Mr. Prospective-Purchaser a clear idea as to the property’s running costs.
A final word, once you have secured a sale and completed transfer, always make sure that you obtain a factura (a stamped, signed and dated receipt) from your estate agent and your lawyer as their commission or fees are deductible from you capital gains tax liability – which currently is levied at 18% of your profit.
If you wish more information on this particular topic or would like to discuss any matter raised therein, contact Reyes Gomez Llorente, De Cotta McKenna y Santafe, on 952 527 014. Offices in Mijas Costa, Coín, Nerja, Granada and Teenrife.
De Cotta McKenna y Santafé
Calle Diputación, 6-2º-A
29780 Nerja
Málaga
Spain
Tel.: (+34) 952 52 70 14
Fax: (+34) 952 52 34 28
website: www.decottalaw.com
De Cotta McKenna & Santafé’s Nerja Office of English Solicitors and Spanish Abogados, Costa del Sol.
De Cotta McKenna & Santafé, English solicitors, and lawyers, and Spanish Abogados, in Marbella, Andalusia, Spain