How much a lawyer can save you when buying a flat

Buying a flat is, for almost everyone, the most expensive transaction of their life. And almost everything is decided before you reach the notary: in the arras (deposit contract).

The notary attests to what is signed and checks the basics, but does not negotiate for you or check whether what you agreed in the deposit contract suits you. The agency gets paid if the sale goes through. The buyer's lawyer is the only one in the transaction whose sole job is to protect your money.

A review is paid once and you know the price before starting. What it prevents, on the other hand, can add up to thousands of euros. These are the cases we see most often.

If the seller owes fees to the homeowners' association, the flat is liable for them even once it is yours. The Horizontal Property Act (article 9.1.e) makes the purchased home liable for what is owed for the current year and the three previous years.

To avoid this you need the debt certificate signed by the association's secretary before signing the arras, not on the day of the notary. If there is a debt, it is deducted from the price or must be paid beforehand.

Something similar happens with special levies. Replacing the lift or repairing the façade can mean several thousand euros per flat, and if the levy was approved before the sale but is paid afterwards, the argument over who pays it often ends up in court. The solution is to read the minutes of recent meetings and state in the arras who pays each levy approved or under consideration. One line in the contract avoids a lawsuit.

Property tax (IBI) the seller has not paid stays attached to the property. The Local Finance Act (article 64) makes the flat liable for outstanding amounts, and the town hall can claim them from the new owner. It is checked with the latest paid receipts and, if necessary, a certificate from the town hall.

The land registry extract (nota simple) shows whether the flat is subject to a mortgage, a seizure or any other charge. A mortgage that has been paid off but not cancelled in the Registry must also be cancelled, and that has a cost the seller should bear. A seizure that is not lifted before signing could end up costing you the flat.

The prudent course is to obtain the nota simple before the arras and again just before the deed, and to agree that all charges are cancelled at the signing itself, paid out of the price.

The type of arras decides what happens if someone pulls out. With withdrawal arras (article 1454 of the Civil Code), the party who withdraws loses the deposit or returns it doubled. With confirmatory arras, the other party can demand that the contract be performed. Many agency templates do not make clear which type they are, and do not provide for what happens if the bank refuses the mortgage.

The deposit is usually around 10% of the price. A clause allowing you to recover it if you cannot get financing, or if a previously unrecorded charge appears, can make the difference between losing that money and losing nothing.

A penthouse extended without a licence, an enclosed terrace or commercial premises turned into a home without a change of use can bring fines, orders to restore what was built and problems when mortgaging or selling later on. And those problems pass to the buyer along with the flat.

It is checked by cross-referencing the nota simple, the cadastre and the town hall's planning information. If what is being sold does not match the records, you negotiate the price, require the seller to regularise it first or decide not to buy. All three options are better than finding out afterwards.

The first consultation is free and without obligation. You tell me about the transaction, we review the documents you have and I tell you what needs checking in your case. If you go ahead, I give you a written quote before starting.

The best time to call is before signing the arras. After that, almost everything that could be negotiated has already been decided.

Further reading: what to check before buying a home in Madrid and which type of deposit contract (arras) to sign.