SALE / PURCHASE OF YOUR HOME:

Did you know the answers to the following questions about home buying and selling?

In the Pérez Parras Economists & Lawyers Firm, we specialise in the sale and purchase of real estate. We speak English, French and Spanish. We give a wide service to foreign and Spanish clients in the sale, rental, or litigation related to their real estate.

The Pérez Parras Economists & Lawyers Firm advises a large number of foreign and national clients in the sale or purchase of their homes, and many of them come up with some of the following basic questions when buying or selling their home:

 1.- Did you know that, in Spain, when you sign a private sales contract, the home does not need to be handed over to validate the contract?

In Spain, a sales contract is valid when both parties have expressed interest and desire to make the purchase of a home. This requires one party to pay the agreed transaction price, and the other party to eventually give the property. But, the contract itself does not require the home to be handed over. However, the contract is binding and obliges the said home to be transferred later.

In brief, the contract in itself does not give the control (possession and ownership of the home) to the buyer, but the contract is what is known in law as a “title” that forces the seller to surrender the home that has been sold.

Therefore, what are the possible ways of delivering the purchased home to the buyer?

Generally, a home can be delivered in any of the following different ways:

• By handing over the keys
• Through the effective sale and possession of the home,
• Signing (granting) a public deed,
• Delivering to the buyer the documents (titles) that state his ownership.

In that sense, in Spanish law, the signature of the public deed by buyer and seller entails the delivery of the property as a necessary requirement for the buyer to actually acquire the property. The public deed is, in addition, a proof of the purchase made before third parties. Its formalisation date is the date of acquisition of the property, for all intents and purposes. The public deed signature is equivalent to the handing over of the property to the buyer.

2.- Is it compulsory to buy a home by public deed?

The answer is “no”. A home can be sold / purchased by signing a private sales document between the parties. This is in harmony with the Spanish law.

In practice, therefore, to buy or sell a property, it would be perfectly valid and effective to use either the contract formalised by public deed, or a private document signed between the parties or, even, a verbal agreement between the parties.

Of course, if both parties agree to the sale of a home by private contract or verbally, by law, they can also at any time force each other to sign a public deed.

3.- How can your lawyer help you make the purchase or sale of your home or premises?

The Pérez Parras Economists & Lawyers Firm helps our clients with the purchase or sale of homes, or premises, avoiding frauds and providing the transaction with the greatest legal security.

For example, ensuring that the seller has paid the general expenses of the community of owners is essential. Or, in any case, whatever debts the owner owes must be made clear before the sale. This is fundamental to avoid unpleasant surprises after the purchase of the property.

Verifying that the seller is really the owner of the property seems obvious, but it is crucial. And, in general, it is vital to have the greatest knowledge about the description of the property, the ownership, charges, encumbrances and limitations that may be associated with this property. You need guarantees and want to avoid big surprises and subsequent setbacks.

Public deed signed abroad: it can be validated in Spain

Once a buyer has recorded his ownership of a property before third parties through signing a public deed of sale or a private agreement (contract), his greatest guarantee is to register such deed or contract in the Property Registry.

4. -Can I register a sale from a private contract signed abroad in the Land Registry in Spain?

To be registered in the Spanish Property Registry, the said contract must comply with the requirements of Spanish legislation. It must not commit any irregularity with the Spanish Law. The contract is valid when there has been an actual delivery of the property by the seller to the buyer.

In conclusion, at the Pérez Parras Economists & Lawyers Firm in Málaga and Nerja, we always encourage our clients to make the purchase of a home through public deeds, as usually done in Spain.

The public deed provides all possible guarantees to the buyer and the seller. It will avoid problems, since it is a valid document, an evidence of the sale before third parties.

In addition, a deed of sale granted in another State of the European Union before a notary has full effect in Spain. It will be registrable without any problem in the Spanish Property Registry, resulting in such a deed.

Happy family signing up their new home deed with their lawyer’s help

Are going to buy or sell your home or any other real estate property? Do not hesitate to contact us. The Pérez Parras Economists and Lawyers Firm advise clients to use a good legal team for such an adventure. Because the costs can be very high, it is not worth taking any kind of risk. We will help you carry your project out with the best guarantees and the best professional legal advice.