21 Sep 2017 ·

After finding the perfect house

After finding the perfect house.

After finding a perfect house in Costa Blanca, and before buying it, you should make sure that there is not any additional catch. The majority of purchases go without any problem or difficulties in Spain. However, there are certain cases where the difficulties have arisen for the buyers. Therefore, you should make sure to carry out a previous study or investigation of the situation of the property you want to buy.

As such, Lawoffice-abogados recommend you to carry out four types of investigations:

  • The legal situation of the property you want to buy
  • Tax and supplies situation
  • The legal situation of the property improvements
  • An architect's inspection

Regarding the legal situation of the property, it's your lawyer who has to be in charge of the thorough investigation, which has to be carried out in the Property Registry in order to make sure that everything is legal. Here the request of the Registry Property Document is needed, which will allow you to see any previous debt or mortgage situation of the property and will contain the essential information for a potential buyer. More specifically, a Registry Property Document contains:

  • Description of the property: it includes various physical characteristics, such as: the limits, floors, square meters, etc.
  • Information about the existence of the Resident's Association
  • The ownership and identity of the owners
  • Mortgages and outstanding loans
  • Outstanding taxes and incurred debts in relation to the property
  • Information on adequacy to the local urban development laws
  • The history of the property construction

In addition, your lawyer has to obtain a Cadastral Certificate in order to check:

  • That the square meters stated in the Title Deed are correct
  • The Cadastral reference
  • The Cadastral map in order to see whether there are any additional constructions or buildings that were not registered

Your lawyer has to compare the data contained in both Registries with the data contained in the Title Deed, as they have to coincide. Also, it is important to make sure that the First Occupancy License and the Second Occupancy License are still in effect.

All new housing in Spain has to have a First Occupancy License, where it's stated that the promoter has fulfilled all of his obligations and that the property is legal. Once all the required obligations are fulfilled, the City Council issues the First Occupancy License.

At the moment of the sale of the house, the buyer will want to make sure that the property has an Occupancy License. After the purchase, the new owner has to apply for his own license, since, depending on the area, the renovation of the license is required in order to hire new water and electricity supply contracts. Without the aforementioned Occupancy License, it is not possible to buy with a mortgage or to hire new water and electricity supply contracts.

Regarding tax and supplies situation, if there are outstanding payments regarding supplies, first it is necessary to pay them before reconnecting the service or transferring it to your name. The outstanding tax payments need to be made before obtaining the ownership of the property. Therefore, it is important to check:

  • Electricity
  • Water
  • Resident's Association fees
  • The garbage collection
  • The Property Tax
  • The capital gain

Regarding the legal situation of the property improvements, it is necessary to obtain the authorization to build and carry out improvements on the property. Even the minor works have to be authorized by the City Council. If the property is part of a Resident's Association, the consent of said Association is also required. If the modifications or improvements were not included in the Title Deed, there could be problems in the future sale of the property, and you could have complications in the future in case it was not detected in time. Therefore, you should detect and solve any setback now.

Your lawyer should contrast and prove the following information:

  • Number of the rooms
  • Number of the floors
  • The existence of the basement floor and whether it is habitable
  • If there were other constructions added
  • If there is a swimming pool and the barbeque area
  • If there are any other notable improvement made on the property
  • If there were made the terrace or balcony enclosures
  • If the aesthetic of the property is the same to the rest of the flats of the same building.

Regarding the architect's inspection, it's advisable to hire a professional architect in order to personally check your house, since that way you will be able to guarantee that your property adjusts to the stipulated housing age and type.

It may seem as a long list of things to check before buying a house. However, not proceeding with any of them would result in many problems after the purchase of the property, preventing you from enjoying your house in the future.

If you would like to hire our services in order to carry out the above mentioned investigations, you can contact us by email: [email protected], or by phone: +34 965 720 675.