Spanish Property Insight

By

Spanish Property Insight

Spanish Property Market Analysts

The escritura pública de compraventa in Spain is the official legal document that formalises the transfer of ownership of a property from the seller to the buyer, known as the Deed of Sale in English. This deed is drafted and signed in front of a notary (notarial act) and is a crucial part of the real estate transaction process in Spain. It holds significant legal and practical importance for both parties involved in the sale.

Key Aspects of the Property Deed of Sale or Escritura Pública de Compraventa:

1. Formalisation of Ownership Transfer

  • Legal Transfer of Ownership: The escritura pública de compraventa is the final legal step where ownership of the property is officially transferred from the seller to the buyer. Without it, the transfer is not legally recognised.
  • Public Document: Since it is signed before a notary (notario), it becomes a public document with full legal effect, offering stronger legal guarantees than a private contract.

2. Role of the Notary

  • Authentication and Verification: The notary plays a key role in verifying the identities of both parties, ensuring that the sale is made voluntarily, and that all legal requirements are met. They also ensure the property is free from legal encumbrances (like unpaid taxes, mortgages, etc.).
  • Impartiality: The notary is a neutral party who ensures that both the buyer and the seller understand the terms of the contract, safeguarding the interests of both sides. They also ensure that the sale complies with Spanish law.

3. Protection Against Fraud

  • Due Diligence: The notary reviews all relevant documents, including the nota simple from the Land Registry and the property’s tax status, to ensure that there are no legal impediments to the sale. This helps prevent fraud, such as selling a property with hidden debts or ownership disputes.
  • Certainty and Legal Security: The escritura pública provides legal certainty to both the buyer and seller by formally documenting the transaction in a public deed, reducing the likelihood of future disputes.

Content of the Escritura Pública de Compraventa:

The document generally includes:

  • Identification of the Parties: Full legal names and identification of both the seller and the buyer.
  • Property Description: A detailed description of the property, including size, address, and any additional features (e.g., garage, storage unit).
  • Purchase Price: The agreed price and how it is being paid (e.g., bank transfer, mortgage, etc.).
  • Legal Encumbrances: Any mortgages, liens, or debts associated with the property must be disclosed and detailed in the deed.
  • Transfer of Possession: The moment when the buyer will take physical possession of the property, often upon payment of the final balance.
  • Tax Information: Details of the taxes that must be paid on the transaction, such as the Impuesto de Transmisiones Patrimoniales (Transfer Tax) or IVA (if applicable).

4. Registration in the Land Registry

  • Official Record of Ownership: After signing the escritura pública de compraventa, it must be presented to the Land Registry (Registro de la Propiedad) to register the new ownership. This ensures that the buyer’s title is publicly recognised and protects them from any third-party claims to the property.
  • Legal Protection: Registration in the Land Registry protects the buyer’s ownership rights and offers legal standing if disputes or claims against the property arise in the future.

5. Tax Implications

  • Trigger for Tax Payments: The signing of the escritura pública is the point at which the buyer becomes liable to pay certain taxes, such as the Property Transfer Tax (Impuesto de Transmisiones Patrimoniales or ITP) for second-hand properties, or VAT (IVA) for new properties.
  • Notary and Registration Fees: After signing the deed, the buyer also becomes responsible for notary fees and registration fees, which are part of the costs associated with completing the sale.

6. Critical for Mortgages

  • Necessary for Mortgage Approval: If the buyer is purchasing the property with a mortgage, the bank will require the escritura pública de compraventa as proof of ownership before releasing the mortgage funds.
  • Mortgage Registration: The deed will also include details of any mortgage taken out by the buyer, which will be registered at the Land Registry alongside the change of ownership.

Why Does the Escritura Pública de Compraventa Matter?

  • Legal Validity: It provides full legal validity and protection to the buyer and seller, documenting the terms of the transaction and the transfer of ownership in a transparent, secure, and legally recognised manner.
  • Official Ownership Record: Without the escritura pública, the new owner cannot register the property in their name at the Land Registry, which means they would not be the legally recognised owner, exposing them to potential legal risks.
  • Avoids Future Disputes: By officially documenting all details of the sale, including any encumbrances or special agreements, the escritura pública helps avoid misunderstandings or disputes that could arise after the transaction is completed.

The escritura pública de compraventa is a vital document in the Spanish property purchase process. It not only formalises the sale but also protects both the buyer and seller through legal oversight by a notary. It ensures that the transaction is fully compliant with Spanish law, provides legal security, and is necessary to register the new ownership in the Land Registry. This document serves as the cornerstone of property ownership in Spain, ensuring transparency and safeguarding against future legal complications.

spanish property title deed escritura
Spanish property escritura pública or title deed

Important Note: This guide is not a substitute for legal advice. See disclaimer below


What information do you find in the Escritura?

A Spanish residential property deed, known as an escritura de compraventa, contains essential information that officially records the purchase of a property. Here’s an overview of the interesting and relevant information typically found in such a deed:

1. Identification of Parties

  • Buyer and Seller: Full names, national identification numbers (DNI, NIE, or passport for non-Spanish citizens), and their legal status (individuals or entities).
  • Notary Information: The name of the notary who authorised the document, as well as the date and location of the signing.

2. Property Description

  • Address: Full address of the property.
  • Land Registry Information: Information related to the Registro de la Propiedad (Land Registry), including the registry office, folio number, book number, and property identification code (Referencia Catastral).
  • Physical Characteristics: Detailed description of the property, including size (square meters), boundaries, floors, rooms, and any annexes such as garages or storage units.

3. Legal Situation of the Property

  • Ownership History: A brief history of ownership, including how the seller acquired the property.
  • Encumbrances and Charges: Information on any mortgages, liens, easements, or other legal charges against the property. This is crucial for determining whether the property has debts or other claims against it.
  • Condominium Information: For properties in communal buildings, there may be a reference to the owner’s share in common areas and details about the community of owners (Comunidad de Propietarios).

4. Purchase Price and Payment Terms

  • Price: The agreed purchase price.
  • Method of Payment: How the payment was or will be made (bank transfer, mortgage loan, etc.), and any amounts paid as deposits or advance payments.
  • Mortgage Details: If the purchase involves a mortgage, the details of the mortgage loan will be included, such as the amount, interest rate, and repayment terms.

5. Taxes and Fees

  • Tax Information: The deed often includes information about the taxes involved in the transaction, such as the Impuesto sobre Transmisiones Patrimoniales (Transfer Tax) or IVA (if applicable), and who is responsible for paying them.
  • Notary and Registry Fees: Information about who is responsible for paying the notary, registration, and other administrative fees.

6. Declarations and Representations

  • Legal Representations: Both parties declare their legal ability to enter into the contract, and the seller confirms that the property is free from hidden encumbrances unless otherwise stated.
  • Energy Efficiency Certificate: Often included to comply with Spanish law, detailing the energy efficiency rating of the property.

7. Delivery of Possession

  • Handover Date: The deed specifies when the buyer will take possession of the property.
  • Condition of the Property: Any stipulations about the condition of the property at the time of transfer, including whether it’s sold furnished or unfurnished, or any items included in the sale (e.g., appliances).

8. Other Agreements or Clauses

  • Special Agreements: Any additional agreements between the buyer and seller, such as maintenance responsibilities, repairs before the transfer, or conditions for deferred payments.
  • Right of First Refusal or Other Rights: In some cases, a right of first refusal (usually for tenants or local authorities) or other legal rights affecting the property may be recorded in the deed.

9. Signatures

  • The signatures of the buyer, seller, and notary to formalise the agreement and register the property with the Land Registry.

Who keeps a copy of the property title deeds / escritura

Both the notary and the buyer are involved in storing and accessing it. Here’s how it works and how you can get a copy:

1. Where Is the Escritura Kept?

a) Notary’s Office (Notaría)

  • After the escritura pública de compraventa is signed, the notary who oversees the transaction retains the original document, known as the “protocolo.” This is a part of the notary’s official archives.
  • The notary keeps this document indefinitely, making it a safe place to retrieve an official copy later if needed.

b) Land Registry (Registro de la Propiedad)

  • Once the escritura is signed, it is used to update the Land Registry (Registro de la Propiedad). The deed’s details, including the new owner’s information and any relevant property-related changes, are recorded in the registry.
  • The Land Registry stores a record of the property’s ownership, but it does not keep the full deed itself. However, it does provide information about the property’s ownership status, mortgages, and legal encumbrances through documents like the nota simple.

c) Owner’s Copy

  • After the signing, the buyer typically receives an authorised copy of the escritura, known as a copia autorizada. This is a fully certified and signed copy that serves as legal proof of ownership.
  • The buyer may also receive a copia simple, which is an unofficial, simpler version of the deed without the notary’s stamp, used for administrative purposes but not legally binding.

2. How to Get a Copy of the Escritura?

If you need a copy of the escritura pública de compraventa, here are the steps to follow:

a) From the Notary

  • Requesting from the Notary: You can request an official copy from the notary who signed the original deed. You’ll need to provide identification and proof of your right to access the document (e.g., you are the current owner or authorised representative).
  • Authorised Copy (Copia Autorizada): This is the certified copy of the escritura and holds the same legal weight as the original.
  • Simple Copy (Copia Simple): This is a non-certified copy, useful for administrative purposes but not legally binding.

Costs: There will typically be a fee for obtaining a new authorised copy, which varies depending on the notary’s office.

b) From the Land Registry (Registro de la Propiedad)

  • While the Land Registry does not store the full escritura, you can request a nota simple or a full certificación registral from the registry, which will provide detailed information about the property and its ownership, but not the complete text of the deed.
  • How to Request It: You can request these documents online or in person at the local Land Registry office. You will need the property’s referencia catastral (cadastral reference) or the address.
  • Costs: There is usually a small fee for obtaining a nota simple or certificación.

c) From a Legal Representative

  • If you are working with a solicitor (abogado) or property manager, they can obtain a copy of the escritura on your behalf. This is common when dealing with property inheritance, selling the property, or for tax purposes.

What if I lose my escritura? How do I get a copy of my property title deeds in Spain?

If you’ve lost your personal copy of the escritura, you can:

  • Contact the Notary: Reach out to the notary who signed the original deed and request an official copia autorizada. You’ll need to provide your identification and may have to pay a fee for the new copy.
  • Get Information from the Land Registry: While the Land Registry doesn’t store the complete deed, it can confirm your ownership and provide legal details related to the property through a certificación registral.

4. How Long Does It Take to Get a Copy?

  • From the notary: Depending on the notary’s office and the location, it can take from a few days to a couple of weeks to receive a new copy of the deed.
  • From the Land Registry: A nota simple can often be obtained within 24 to 48 hours online. A full certificación registral may take a few days longer.

Summary of Steps to Get a Copy:

  1. From the Notary: Contact the original notary who signed the deed and request a certified copy.
  2. From the Land Registry: Request a nota simple or certificación if you only need confirmation of property details and ownership.
  3. Via Legal Representatives: Have a solicitor or property manager request a copy on your behalf.

The escritura pública is a crucial legal document for proving ownership, selling a property, or securing a mortgage, so maintaining a copy and knowing how to obtain it is important for property owners in Spain.

What is the equivalent of the escritura in English law?

In English law, the closest equivalent to the escritura pública de compraventa in Spain would be the Title Deed or Transfer Deed. However, there are key differences in the process of transferring property ownership between the two legal systems. Here’s a breakdown of the relevant documents and procedures in English law:

1. Title Deed (Transfer Deed)

  • The Title Deed in English law is the document that proves legal ownership of property. It is similar to the escritura pública in that it formalises the transfer of ownership from the seller to the buyer.
  • Transfer of Ownership: This document is usually drafted by a solicitor or licensed conveyancer and signed by both the seller and the buyer. It is then lodged with the Land Registry for the change of ownership to be officially recorded.
  • Land Registry: In England and Wales, the Land Registry holds the official record of property ownership. Once the transfer deed is registered, the new owner’s name is recorded, and the buyer receives an official copy of the Title Register, proving their legal ownership. The original Title Deed (Transfer Deed) itself does not need to be kept by the buyer, as the Land Registry stores the official record electronically.

2. Conveyancing Process in English Law

The process of buying property in England involves a procedure known as conveyancing, which is somewhat similar to the Spanish process involving the notary but differs in key aspects:

  • Contract Exchange: During the conveyancing process, the buyer and seller exchange signed contracts agreeing to the sale, but this is not yet the official transfer of ownership. This is different from Spain, where the escritura pública signed before a notary transfers ownership immediately.
  • Completion: After exchanging contracts, the parties move toward “completion,” which is the final stage where the transfer of the property occurs. At completion, the solicitor or conveyancer handles the transfer of funds and ensures the property is free of any legal impediments.
  • Transfer Deed: The Transfer Deed (similar to the escritura pública) is signed at completion, and it is this document that the buyer’s solicitor submits to the Land Registry to record the transfer of ownership.

3. Role of Solicitors and Conveyancers

  • Unlike in Spain, where a notary plays a central role in the transaction, in English law, solicitors or licensed conveyancers are responsible for preparing and overseeing the transfer of property. They handle the legal aspects, check for any legal restrictions or encumbrances on the property, and submit the necessary paperwork to the Land Registry.
  • Notaries in English law do exist but are typically not involved in property transfers. They handle specific legal matters like the authentication of international documents.

4. Land Registry (Equivalent to Spain’s Registro de la Propiedad)

  • The Land Registry in England and Wales is where property ownership is formally recorded. After the completion of a property sale, the Transfer Deed and other relevant documents are submitted here. The new owner is then officially registered as the legal owner of the property, and the Title Register is updated.
  • The Title Register is equivalent to the Spanish Registro de la Propiedad. It provides official proof of ownership, details any mortgages or legal charges on the property, and records any rights or restrictions affecting the property.

Key Differences Between Spanish and English Law:

  • Notarial System vs. Solicitors: In Spain, a notary is a neutral public official responsible for authenticating property sales and ensuring legal compliance. In England, solicitors or conveyancers act for the buyer or seller but are not public officials.
  • Title Deed vs. Escritura: While both systems require official documentation of the property transfer, Spain’s escritura pública is signed in front of a notary, whereas the English Title Deed is signed as part of the private conveyancing process and recorded by the Land Registry.
  • Land Registry Registration: Both Spain and England have a Land Registry system, but in Spain, ownership rights are recognised immediately upon signing the escritura pública before a notary, while in England, the transfer must be registered with the Land Registry for ownership to take full effect.

Summary:

In English law, the Title Deed or Transfer Deed is the closest equivalent to the Spanish escritura pública de compraventa. Both documents formalise the transfer of property ownership, but the procedures and roles of legal professionals (notary in Spain vs. solicitor in England) differ significantly. In both systems, the Land Registry (Registro de la Propiedad in Spain and Land Registry in England) is crucial for recording and securing property rights.

Subscribe for updates to this guide

Subscribe for updates to this guide

Join the SPI mailing list to be kept informed of any important updates to this guide.

SPI NEWSLETTER

Property market news & intelligence, plus valuable articles and tips for buyers, owners, vendors & industry insiders straight to your inbox. Never miss an important heads-up!

By submitting this form you agree to our Privacy Policy & Terms of Use. You will be sent an email to confirm your subscription, so please look out for that. If you don't confirm your subscription you don't get sent the newsletter.

Disclaimer

This guide is provided for informational and orientation purposes only and is not intended as a substitute for professional legal, financial, or other advice. While every effort has been made to ensure the accuracy and completeness of the information provided, no warranties or guarantees, express or implied, are made regarding its accuracy, completeness, or currency. The information contained in this guide may be outdated or subject to change without notice. Use of this guide is at your own risk, and the authors, publishers, and distributors accept no responsibility or liability for any losses or damages that may result from its use. It is strongly recommended that you consult a qualified professional for specific advice pertaining to your situation.