3.4.3. Conveyancing process

The conveyancing process is to legally tranfer property ownership from one person to another, from the owner to the buyer and extends from the moment your offer is accepted to the moment you receive the keys to your new property. Conveyancing is basically the processing of paperwork needed to buy and sell property and transfer the title deed (escritura).

English Speaking Lawyer

At this point you will need to already have or should find an English speaking lawyer to assist and advise you through the conveyancing process.

Your lawyer will draw up a Terms of Engagement, setting out their fees and all the costs and deposits required. It is essential you hire the services of an independent lawyer to protect you throughout the Conveyancing process. Compare fees of several legal practices, get quotations in writing and check whether they are full and binding or merely an estimate.

Due Diligence

Your lawyer will check the property is free from any debts, liabilities or outstanding mortgages or loans, confirm the legal owner of the property and check the title deeds. This is the Due diligence report on the house and it will ascertain there are no debts linked to the property, mortgages or loans and confirm the legal owner of the property is infact the person who is selling it.

Documentation (Property registration, Tax payments)

Your lawyer will also check the property has all the necessary licenses, that it has been correctly registered in the land registry, whether there are any urban infringements. Your lawyer is also there to keep you informed on the buying process and tell you about all the purchase taxes and fees you have to pay during and after the purchase.

Option Contract

An Option contract will be drawn up, stipulating the buying price, deposit (about 10%), when you will be paying it, date for actual purchase and exactly what is included in the price. This contract will reserve the property while you finalise all the other legal, fiscal and administrative costs and avoid other agents selling the same property to someone else.

If you were to withdraw at this stage you would lose the deposit, if the seller withdraws he/she will be obliged to pay twice the amount( depending on the exact wording of the option contract).

Public Notary

Drawing up the title deed (Escritura de Comparventa) and witnessing the signing by the buyer or his/her lawyer (with power of attorney) and the seller must be performed by a Public Notary. The notary however, does not verify or guarantee of a contract nor does he protect you from fraud. He is primarily a government representative, there to ensure that all state taxes are paid upon completion of sale.

Property Register

The notary will also check the property register (registro de la propiedad), name of title holder, property description, any charges or encumbrances on the property, within the last 4 days before signing the title deed. And this information must be included in the title deed.

Title Deed

The notary will prepare the title deed; ensure that it is drawn up properly and that the stipulated price for the property is paid to the vendor. He certifies the identity of both participants and witnesses the signing of the deed. He can arrange to register the property under the new owner’s name in the property registry (registro de la propiedad) and collect all relevant taxes.

At times, public notaries may include a get out clause in the title deed whereby the buyer agrees to take full responsibility for any charges or encumbrances against the property; thereby essentially riding the notary of any responsibility. It is the job of your lawyer to check the contract and make sure you do not sign it if such a clause has been added.

A public notary is not required to speak English, or to explain the Spanish Property Law. Your lawyer should be on hand to explain any confusion and to ensure the notary is acting correctly.