Purchasing a home is one of the most significant decisions in life. It is not only a major financial investment but also a complex transaction with numerous legal implications and obligations. Therefore, before signing any purchase agreement, it is crucial to thoroughly verify all documents to protect yourself from potential issues and unexpected expenses in the future.
In this article, we outline the key documents to request and review when buying both new and resale properties in Spain. We also highlight additional checks that can prove beneficial.
Essential Documents to Verify Real Estate in Spain Before Purchase
The necessary documents include:
- Property Registry Extract – Nota Simple Informativa. This extract confirms ownership rights and details the number of owners, their shares, existing encumbrances, easements, and other restrictions. It also provides property characteristics such as area, location, and boundaries with neighboring properties. The extract is valid for three months, so pay attention to the issue date. Both buyers and sellers can request it using registration details like the cadastral number, CRU number, or the exact address. It can be obtained at the local Property Registry office or online.
- Documents Establishing Ownership. The notarized purchase contract (escritura pública) confirms that the seller legally acquired the property. Similar documents include inheritance deeds or donation acts. For new properties from developers, verify the occupancy license, construction completion certificate, and compliance with urban planning regulations.
- Energy Performance Certificate. This certificate indicates the property's energy efficiency class, which affects energy consumption and medium-term financial costs. It is also a mandatory document for the notary to formalize the transaction.
- Certificate of Habitability (Cédula de Habitabilidad). This certifies that the property meets minimum sanitary, hygiene, and structural safety standards required for habitation. It is not mandatory in all autonomous communities, so check local regulations. In some municipalities, this certificate is necessary to connect basic utilities such as water, electricity, or gas.
- Receipts for Utility Payments, Taxes, and Condominium Fees. Before signing, ensure there are no outstanding debts. Request recent paid receipts or bank statements for water, electricity, and gas. For the annual property tax (IBI), ask for the latest receipt and a certificate confirming no arrears for previous years. Similarly, obtain proof of recent condominium fee payments and a statement from the management company confirming no debts.
- Deposit Agreement (Contrato de Arras). This contract is signed when reserving the property and paying a deposit. Review the rights and obligations of both parties in case of withdrawal and the deadlines for completing the transaction. Confirm that the seller’s and property details in this contract match those in the Nota Simple Informativa.
- Technical Building Inspection Report (ITE). Required only when buying in older buildings. Definitions of "old" vary by region, typically buildings over 35 or 50 years. The report confirms the building’s condition and preservation status. It can be reviewed at the management company. Also, inquire about any planned works (derramas) approved by the homeowners’ assembly that may require additional contributions. Routine maintenance is covered by regular fees, but emergency or major repairs (e.g., elevator replacement, facade repainting) may incur significant extra costs, sometimes amounting to thousands of euros. For very old buildings, check if the property is classified as architectural heritage, which entails specific restrictions and requirements.
- Condominium Bylaws and Minutes of the Last Two General Meetings. The bylaws outline restrictions such as rules on tourist rentals or balcony modifications. Meeting minutes may reveal decisions on upcoming costly repairs or improvements affecting the property or community.
- Cadastral Extract with Valor de Referencia. Valor de Referencia is an annually updated market value indicator based on notarized transactions. It serves as a reference for calculating certain taxes, including the property transfer tax (ITP) on resale purchases. If the agreed sale price is below this reference value, taxes will be calculated based on the Valor de Referencia.
Additional Checks Before Purchasing Property in Spain
Assess the overall condition of the property, including visible and technical aspects: absence of mold and condensation (especially in bathrooms), functioning of appliances, heating and air conditioning systems, window glazing, absence of cracks or gaps inside and outside the building, and the condition of electrical wiring and plumbing. According to Tinsa, a leading independent appraiser, one in four properties has significant hidden issues that can be costly to fix after purchase.
Ensure the property is not occupied by squatters (okupas), as eviction is a lengthy and expensive process. Pay close attention to existing tenants. Spanish law allows the sale of properties with active rental agreements, and tenants will pay rent to the new owner. However, termination of leases solely due to ownership change is not permitted, as tenants’ rights are protected under the Urban Lease Law.
It is also advisable to meet the president of the homeowners’ association and gather general information about the residents, including any noisy neighbors.
While collecting documents and inspecting the property can be time-consuming, these steps are essential to safeguard yourself from future complications and unexpected costs.