Buying in the campo
If you are buying a rural property in Spain, whether in a village or in the campo, you may well find there is no escritura. This does not necessarily mean the vendor is not the owner, nor that you should not buy it.
The only definite proof of title in Spain is a notarial deed of transfer known as an escritura which has been registered at the Land Registry. If you want to buy or sell a property the normal procedure is for both parties or their representatives to appear before a notary and execute a new escritura.
In country areas where properties are traditionally only passed down from parents to their children or conveyed between people who know each other, it is still very common for there to be no previous escritura. The reason for this is mainly to do with transfer taxes and estate duty, both of which can easily be avoided if there is no registered title.
When you as a foreigner purchase the property you will want to have a registered title to prove it is really yours. A registered escritura would also enable you to raise a mortgage and make it easier to sell again. There are two ways in which this can be achieved.
Expediente de dominio.
This is a court procedure so you obviously need a lawyer as well as well as quite a lot of money. Among other things you will need a certificate from the Land Registry that the property has not previously been registered, a catastral certificate to show the vendor is the owner for rating purposes and witnesses to support your case. The property must have vacant possession (no tenants). The procedure will typically take between one and two years to complete and results in a court judgement stating that you as the new purchaser are now the owner of the property. The judgement takes the place of the escritura and can be registered at the Land Registry.
205 procedure.
This is a notarial procedure so it should be quicker and cheaper. You will need similar documentation. You can appear before the notary with witnesses to create an acta de notoriedad. The witnesses must confirm the property belongs to the person who is selling it to you. This is expensive - both parties have to pay 6% of the declared price. It is usually cheaper to create a prior escritura. Often this is done by conveying a property inherited by one spouse to the joint ownership of both spouses which is exempt from tax. Then both spouses convey the property to you with a second escritura. The Land Registry will be prepared to register this second escritura on the basis that there is already a previous notarial document. But be careful because this registration is then not effective against third parties for a period of two years, during which time claims could be made against the property and you will not be able to get a mortgage. |
