What does the Notary in Spain for you?

The first step is nothing less than choosing the right property in Spain. Therefore, it is a decision that you should take calmly, assessing various factors, both personal and economic.

Once you have chosen the property in Spain of your choice, the purchase and sale operation begins. Before the public deed is drawn up by the notary, there are those who decide to sign a preliminary document, popularly known as "arras" or "contrato privado de compraventa". This document is not obligatory, but the law considers it to be a valid contract and, from the moment you sign it, you will be obliged to comply with it.

It is important that you inform yourself properly before signing any agreement.

What is the Spanish "arras" or private purchase contract?

They are the amount that the buyer gives to the seller as a deposit on account of the price. The most common are the so-called confirmatory ones: they are given as a sign of the perfection of the contract and on account of the price. If agreed, the deposit can also be "penitential". If the agreement is broken by the buyer, you will lose the deposit, and if it is the seller's fault, he will have to return double the agreed amount. The "arras" agreement does not always exist, although it is very common.

Private Contract or Public Deed in Spain?

The time has come to purchase your property in Spain and the first thing you will have to decide is how you are going to pay for the property, whether in cash or with external financing. If you pay in cash, you will be able to agree the form of payment with the seller as you wish, always respecting tax legislation. If you choose to finance the purchase of a property in Spain, the most common option is to take out a long-term loan.

With cash payment and without financing, you can close the purchase by means of a private purchase contract or directly to a public deed in a Spanish Notary.

As you can see, the public deed is not compulsory. However, it is highly advisable because it will guarantee that your agreement is legal, irremovable and one hundred percent secure. The actions of Spanish notaries, who are civil servants, provide the transaction with extra information and give greater legal security to the contracting parties.

Why a Public Deed instead of a Private Purchase Contract?

- The public deed is irrefutable. It is proof that both parties agree on the purchase and sale of the property and that they express their willingness to comply with what they have signed. The Spanish notary certifies this commitment in the deed so that neither of the parties can deny to the other what they have stated because they are protected by the authenticity given to them by the Spanish notary. The public deed is privileged evidence before the courts.

- The public deed provides legal certainty. In addition to attesting to the transaction and its conditions, the Spanish notary verifies and verifies that the aspects included in the private document (earnest money contract) are true and comply with the law.

Thus, before and during the signing of the public deed, the notary:

Checks:

- The identity, capacity and legitimacy of the buyer and seller.

- The seller's title and records the sale on the same title.

- Whether or not it is the seller's habitual residence, since if it is the seller's habitual residence, both spouses or, on occasions, the members of the unmarried couple must sign.

- The payment of the community fees.

- If the property has the certificate of habitability, required by some autonomous communities.

- The means of payment: in the deed there is a record of how and when the property has been paid for, the account numbers where the money has come from and where it has been deposited in the case of a bank transfer.

Informs:

- In the case of being an Official Protection Housing (VPO), so that all the obligations and limitations of this type of property are fulfilled.

- On the tenancy status. The Spanish notary will require the seller to state in the deed whether or not the property is free of leases and occupants.

- To the seller, of the risks that occur in the case of deferred price and of the guarantees that he may have to avoid these risks.

- To the contracting parties, of their legal obligations and of the fiscal duties derived from the sale.

Explains:

- The state of the charges that weigh on the property in order to inform the buyer if there are mortgages, embargoes or any other encumbrances.

Requests:

- The energy efficiency certificate from the seller.

- Proof of payment of IBI (property tax) and the cadastral reference number of the property to check its correspondence with the seller's title deeds.

Identify:

- The Real Owner in the event that a commercial company is involved, in compliance with the Law on the Prevention of Money Laundering.

Describe:

- The distribution of the payments of the transaction between the parties.

Manages:

- If the parties so request (highly recommended), the payment of the different expenses and taxes involved in the public deed, as well as its presentation at the Land Registry. All electronically and securely.