The time to check is before the deposit
Almost everyone calls a lawyer once they have already signed the deposit contract (arras). That is too late: from then on, pulling out costs money.
A useful review is done before you hand over anything, and it does not take weeks. With the land registry extract (nota simple), the last property tax (IBI) receipt, the homeowners' association certificate and the cadastral reference, you know almost everything that matters.
What we check, in order
- 1Who really owns itThe land registry extract shows who is registered as owner and in what share. If there are several owners, they all have to sell.
- 2What charges it carriesMortgages, seizures, easements, termination clauses. A mortgage does not stop you buying, but you need to know how it will be cancelled and who pays for it.
- 3What is owed to the homeowners' associationThe notary asks for a certificate showing payments are up to date, and you should also ask about special levies approved but not yet charged.
- 4What the cadastre and planning rules sayThat the square metres match, that the use is the one advertised and that there are no unlicensed works.
- 5What the contract you have been sent saysThis is where it is decided what happens if something goes wrong, and it is the part almost nobody reads in full.
The nota simple does not tell you everything
It is the most useful document and the most misunderstood. The nota simple is for information only: it reflects what is recorded in the Land Registry at that moment, and tells you who is selling and with what charges.
What it does not do is provide legal certification. That is what the registry certificate (certificación registral) is for: a separate document, requested when the case calls for it.
And there are things that are not in the Registry but still affect you: debts to the homeowners' association, works carried out without a licence, tenants with a current lease, and what the planning rules say. That is why a review is not just ordering a nota simple and glancing at it.
Questions when buying
Who pays the municipal capital gains tax (plusvalía)?
By law it falls on the seller in a sale, although the parties can agree otherwise in the contract. It should be written down, not assumed.
What taxes does the buyer pay?
For a resale home, property transfer tax (ITP), whose rate is set by each region. For a new build, VAT and stamp duty (AJD). On top of that, notary, land registry and processing fees.
What if the home is rented out?
A lease does not end because the property is sold: the buyer takes over the terms the law provides for in each case. You need to know this before buying, not after.
How long does the review take?
With the documents in hand, days. What takes time is getting the paperwork, and that can start the same day you view the flat.