Nota Simple

This is a document from the Land Registry office showing who is the legal registered owner of the property. It also shows if there are any mortgages or other encumbrances registered against the same. The name/s on the Nota Simple should match the name/s on the Escritura (Title Deed). Once your Lawyer has seen these documents, is satisfied that the property belongs to the person who claims to be the owner, and has confirmed that there are no mortgages or other encumbrances, he will recommend that you proceed with the purchase.

However, before signing and paying the deposit he should ensure that the following are included in the Contract:

That the purchase price and conditions of payment are clearly written.

All charges on the property, ie community fees, electricity, water (which may be included in the community fees), telephone bills and rates, are paid. These items are the responsibility of the vendor up until the day of the signing of the Escritura (Title Deed) by the new purchaser. This is most important, as many debts in Spain are on the property and not the person. The purchaser should only be responsible for any debts on the property from the day of the signing of the Escritura (Title Deed) and the handing over of the keys. It is most important that your Lawyer has proof that any outstanding debts, are up-to-date before signing the Escritura and handing over the final payment.

There should be a section in the Contract headed Cargas (Charges). This should read ‘Free of Charges and Encumbrances’

If the property is being sold furnished - which is often the case when buying a resale property in Spain - a complete inventory should be drawn up and signed by both parties. This document should be annexed to the Contract.

The Contract will normally contain a Penalty Clause, which states that if the balance outstanding is not paid by the agreed date (specified in the Contract), the purchaser will lose the amount paid and the vendor is free to offer the property for sale again. A potential purchaser has no call against the property therefore, before you sign the Contract and pay the deposit you must be absolutely sure that you can pay the balance on the agreed date.

Although it is unlikely that the vendor will back out of the sale at the last minute - after signing the Contract - this is always a possibility. Therefore, it is a good idea to have a further Penalty Clause inserted in the Contract stating that if (for any reason) the vendor does not complete on the Contract and wishes to withdraw, he must pay the purchaser an indemnity of double the amount paid as a deposit for the purchase of the property.

The vendor is also obliged to present the last receipt of payment of rates (Contribuciones or I.B.I.) at the Notary’s Office or to your Lawyer, prior to the signing of the Escritura. It is photocopied onto official Notarial paper and included in the Escritura. Your Lawyer should also obtain a certificate from the local Rates Office (Recaudacion Provincial) stating that there are no outstanding rates to be paid.

With regard to the annual Community Fees, it is now necessary for your Lawyer to obtain a certificate from the Administrator of the Community showing that the fees are paid up-to-date on the property you are purchasing. This is for the Notary, your Lawyer should obtain this certificate for you and present it to him, along with the other documentation necessary for Notary to prepare the Escritura. It is an obligation that your Lawyer should check on the day of signing the Escritura that no debts or mortgages have been registered against the property since he made the first search, when the purchaser signed the Contract of Sale.