Let’s be totally blunt here, there are some real sharks out there, selling property who will tell you anything that they think you want to hear, in order to make a sale.
We went to view a property a couple of years ago, arrived 30 minutes early in the town so went direct to this stunning looking property. How did we know it is stunning? The images of the estate agents website, showed it was a real attention grabber.
Sadly what the listing failed to mention was the heavily rutted and pot holed track leading to this and 2 other properties. Anyway we drove up to the property, which was enclosed behind a 6 foot wall and vehicle gate, but I had decided before even considering going in, that the road was not going to work for us. I told Soph to ring the agent to cancel the viewing, to save them wasting their time as well as ours.
The Estate Agents Laughable Response
Soph made the call on the car hands free, the agent asked why we were not wanting to do the viewing. We explained the state of the road was the issue. Now here I would have expected the agent to say something along the lines of ‘ totally understand, thanks for letting us know’. Instead she replied with ‘ that’s nothing to be worried about, the council and town hall are replacing that road surface with a fully tarmacced surface very soon’
Needless to say 18 months later we went down to the end of that track, it was still the same rutted dirt track….
Tip One When Buying A House In Spain
Take a walking stick with you. Doesn’t need to be anything special, any old walking stick will do. If the house you are viewing has tiled floors, then using the stick to tap gently on the floors will help you determine the type of foundations ( if any ) under the tiles.
A lot of older / more traditional Spanish houses have tiled floors, which look pretty but often are not that well put together. The Spanish builders tend to use a dot and dab approach when laying tiles, meaning the tile has a small dab of cement in each corner then sits on a pile of sand. Looks nice, but these are often prone to cracking or even breaking if people step on the middle of the tile itself.
Tip Two When Buying A House In Spain – Is It Insulated At All?
As you can imagine Spain gets very hot in the summer, 29°C (84°F) in may is not unusual. Likewise winters can be nippy.
When viewing a house, in the kitchen look for a cupboard on an outside wall, open the cupboard doors and you’ll possibly feel the heat ( or cold , if viewing in the winter months ) but also touch the outside facing wall, in the cupboard. The heat in the summer will give an indication as to how hot the kitchen will get.
If the seller has a dishwasher or washing machine in the kitchen, plumbed to the outside wall, even opening the doors to these will also give an indication as to how hot things will be.
Also is the fridge or freezer in direct line of sight of any windows? If you are viewing in the summer months, run your hand down the side of the fridge or freezer, feel how hot the appliances are.
During the summer when the bright sunlight is streaming through the windows into the kitchen, these appliances will have to work twice as hard to keep the food inside cold. This means the electricity bills will go up too. Hence why solar is a good investment for a long term home.
Tip Three When Buying Any House In Spain: Is It Legal?
This is a big one. In fact it is a huge one! I have lost count of the number of eastate agents trying to sell us a property who when I ask the specific question ” Is This Property FULLY LEGAL?” just duck, dive and avoid giving either a YES or NO answer. Instead you get answers such as:
A) Don’t worry the town hall are issuing all the properties on this road a licence this year.
B) Don’t worry about this small matter, I live in a house that isn’t legal, so there’s nothing to worry about.
Fully Legal
Someone once asked what I meant by ‘ fully legal’. So basically an Escritura, or property deed in Spanish, becomes relevant during the property buying and selling process in Spain. It is an essential document for the transfer of absolute legal ownership from the original property owner to the purchaser. It shows ( or should do ) any new works done to the house, such as extensions, swimming pools etc.
So a house can be legal if the person selling has the Escritura. I say can be and not is, becasue as we have twice found out, when we have bought from older couples who have lived in the same house for many years, they have had things changed, added or enlarged and not told the town hall. Twice when we have bought, it was the swimming pool that was the issue. Both times, they had not had this added to the paperwork, so therefore their house was not fully legal. Both times were were going to pull out of the purchase unless they got it rectified, at their expense.
Steps to Verify the Legality of a Property in Spain Doing It Yourself:
- Check the Land Registry (Registro de la Propiedad):
- Obtain a Nota Simple from the Land Registry. This document provides essential information about the property, including its legal status, ownership, and any encumbrances or charges against it.
- The Nota Simple will confirm if the property is registered and if it matches the seller’s claims.
- Verify the Cadastral Information (Catastro):
- The Cadastre is a public register managed by the Dirección General del Catastro that includes detailed information about the physical characteristics and boundaries of the property.
- Cross-check the information from the Cadastre with the Nota Simple to ensure consistency in property boundaries and built areas.
- You can access the Cadastre online at Sede Electrónica del Catastro.
- Review the Building License (Licencia de Obra):
- Ensure that the property was constructed with the appropriate building license issued by the local municipality.
- The seller should provide a copy of the building license. If the property has undergone renovations, make sure there are licenses for those works as well.
- Check the Certificate of Occupancy (Cédula de Habitabilidad):
- This certificate confirms that the property meets the habitability standards set by local authorities.
- Verify that the property has a valid certificate, especially if it’s an older property, as standards may have changed over time.
- Urban Planning Certificate (Certificado Urbanístico):
- Request an Urban Planning Certificate from the local town hall (Ayuntamiento). This document provides information on the land use regulations applicable to the property.
- It ensures that the property complies with local urban planning regulations and that there are no pending infractions.
- Confirm with the Local Town Hall (Ayuntamiento):
- Visit the local town hall to check if there are any planning infractions or unresolved issues related to the property.
- Ensure that all necessary municipal taxes and fees have been paid up to date.
- Review Property Deeds (Escritura Pública):
- Examine the property deeds to ensure they accurately reflect the property’s current status and ownership.
- These deeds should be notarized and registered in the Land Registry.
- Hire a Qualified Lawyer (Abogado):
- Engage a lawyer specializing in Spanish real estate law to assist with due diligence.
- Your lawyer can verify all documents, ensure compliance with local laws, and protect your interests throughout the buying process.
- Check for Mortgages or Liens:
- Ensure there are no outstanding mortgages or liens on the property by reviewing the Nota Simple and other relevant documents.
- Your lawyer can help verify this information.
- Verify Utility Connections and Infrastructure:
- Confirm that the property has legal and approved connections to essential utilities (water, electricity, gas, sewage).
- Ensure all utility bills are paid and up to date.
Authoritative Resources and Links
- Land Registry (Registro de la Propiedad):
- Cadastre (Catastro):
- General Directorate of Cadastre (Dirección General del Catastro):
- Ministry of Transport, Mobility, and Urban Agenda (Ministerio de Transportes, Movilidad y Agenda Urbana):
Now this takes quite a bit of time and unless you are both fluent in Spanish and fully understand the legal workings of the system can be a real ball ache. What we did was use a lawyer to do a full check and survey etc ( as our house is classed as a rustic property or a finca rústica ). Due to the age of our house it was legal and once the sellers sorted out the swimming pool onto the paperwork it became fully legal.
Cave Houses In Spain
They are great, they don’t need air con in summer and in winter require little in the way of heating. They are also often relatively cheap to buy.
So as you know we bought and lived in a wonderful cave house and loved it. The only real reason we moved was the garden area wasn’t big enough for 3 dogs and we got a second vehicle and had nowhere to park it.
As you can imagine we viewed several along the way, some good, some bad and yes some were truly ugly. We visited one and there was literally water running into the room from the roof, as this cave had a road running over the house, so there was clearly structural issues.
If you are interested in a cave house, look for one that has nothing above it except grass and at worst a footpath running overhead. These houses are often a hundred years old at least and were built when man used a horse and cart. Now in some villages to see trucks and the local Repsol or Cepsa lorries carrying all the gas bottles. Imagine the weight these are carrying over the roof of the cave below.
If you are seriously considering a cave house that does have a road or a public right of way above the roof area, make sure it is steel meshed for safety.
Cave houses, known as “casas cueva” in Spanish, are a unique and historical form of housing found throughout Spain, particularly in southern regions like Andalusia, Extremadura, and Castilla-La Mancha. Living in a cave house offers a naturally cool environment in the summer and better insulation in the winter.
However, renovating or building a cave house involves specific legal requirements.
Here’s some information about cave houses and their legal requirements in Spain, along with some official links:
- Legal Status: Cave houses are recognized as legitimate dwellings in Spain, but they must meet certain habitability standards to be considered legal residences.
- Renovation and Construction: Any renovation or construction work on cave houses typically requires permits from the local town hall (ayuntamiento). The specific requirements can vary depending on the municipality and the extent of the work.
- Registration: Cave houses should be properly registered in the land registry (Registro de la Propiedad) and cadastre (Catastro).
- Habitability Certificate: To be used as a permanent residence, a cave house must have a habitability certificate (Cédula de Habitabilidad), which confirms it meets basic living standards.
Official Spanish Government Links:
- Spanish Ministry of Transport, Mobility and Urban Agenda (Ministerio de Transportes, Movilidad y Agenda Urbana): https://www.mitma.gob.es/ This ministry oversees housing regulations at the national level.
- Andalusian Government Housing and Urban Planning Department: https://www.juntadeandalucia.es/organismos/fomentoinfraestructurasyordenaciondelterritorio/areas/vivienda-rehabilitacion.html This is relevant for cave houses in the Andalucía region.
- Spanish Land Registry (Registro de la Propiedad): https://www.registradores.org/ For information on property registration.
- Spanish Cadastre (Catastro): https://www.sedecatastro.gob.es/ For cadastral information and registration.
A Great Tip When Buying A Cave House In Spain
So if you are viewing a cave house and you see bits of the white wall on the floor in a powder type form, it’s not always something to worry about. The nickname for this is ‘ dandruff ‘ as cave houses are considered to be a living organism and a little shedding of the paint inside is part of the course. To see if this is more of an issue than the normal ‘dandruff’ run your hands along the walls and also the ceiling. If you see a lot of paint flaking or peeling off, this is often a sign of damp.
Moisture Management: Cave houses are naturally breathable, allowing moisture to circulate and prevent condensation buildup, but don’t confuse this with damp issues.
Rustic Properties
Rustic properties in Spain, known as “fincas rústicas” or “propiedades rústicas,” are dwellings or land located outside of urban areas and designated for agricultural, forestry, or livestock farming purposes.
Here’s a breakdown of key characteristics of rustic properties:
- Location: Situated outside towns and villages, often in rural or agricultural settings.
- Land Use: Primarily intended for agricultural activities like farming, livestock breeding, or forestry.
- Building Size and Type: Can range from small farmhouses and cottages to larger estates with barns, stables, and outbuildings.
- Regulations: Subject to specific building codes and land-use regulations that differ from urban areas.
Types of Rustic Properties:
Rustic properties come in various forms, each with its own characteristics:
- Fincas: Large estates encompassing significant acreage and potentially including agricultural buildings like barns or stables.
- Casas de campo: Country houses, often smaller than fincas, used for residence or agricultural purposes.
- Masías: Traditional farmhouses found in regions like Catalonia, typically built with stone and wood.
- Cortijos: Fortified farmhouses, particularly prevalent in southern Spain, with historical significance.
- Bodegas: Properties primarily dedicated to wine production, including vineyards and cellars.
Things to Consider When Buying a Rustic Property:
- Land Use Regulations: Ensure the property allows for your desired activities (e.g., farming, livestock breeding).
- Water Rights: Water availability is crucial, especially for agricultural use. Verify the property has access to water sources or legal water rights.
- Accessibility: Remote locations can offer peace and quiet but might have limited access to amenities like roads or utilities.
- Renovation Potential: Many rustic properties require renovation. Be realistic about your budget and the scope of work needed.
While rustic properties offer a unique opportunity for a rural lifestyle or investment, understanding the regulations and characteristics of these properties is crucial before making a purchase.
Deposits And Possible Pitfalls
There has been a rise where agents are now changing contracts for sellers so that if a sale falls through, they get their fees from deposits retained, which I personally think is a farce. However, as a buyer it is important to understand that you can lose your deposit if you change your mind, so please read the next sections slowly and carefully.
The Spanish laws regarding deposits on property purchases, particularly in cases where the buyer pulls out, are primarily governed by the Spanish Civil Code. However, it’s important to note that specific terms can be negotiated in the private contract between buyer and seller. Here’s an overview of the current situation:
- Arras Penitenciales (Forfeit Deposit): This is the most common type of deposit in Spain. Under this arrangement:
- If the buyer pulls out, they forfeit their deposit.
- If the seller pulls out, they must return double the deposit to the buyer.
The standard deposit amount is usually 10% of the purchase price.
- Arras Confirmatorias (Confirmatory Deposit): This type of deposit simply confirms the intention to buy and becomes part of the purchase price. If either party pulls out, they may be liable for damages, but there’s no automatic forfeiture or doubling of the deposit.
- Arras Penales (Penalty Deposit): This is similar to Arras Penitenciales, but the penalty for pulling out can be higher and is specified in the contract.
It’s crucial to understand that:
- The type of deposit should be clearly specified in the contract.
- If not specified, courts often interpret deposits as Arras Confirmatorias.
- Buyers should be cautious about larger deposits, as they risk losing more if they pull out.
- The law allows for negotiation of different terms, so the contract terms are paramount.
Legal Framework and Protections
The Spanish Civil Code (Código Civil) governs these agreements and outlines the obligations and protections for both buyers and sellers. Here are some key points:
- Article 1454 of the Civil Code: This article specifically addresses the arras penitenciales. It states that if the buyer withdraws from the contract, they lose their deposit. Conversely, if the seller withdraws, they must return the deposit and pay an equivalent amount to the buyer as a penalty.
- Contract Specifics: The terms of the arras agreement, including the amount of the deposit and the conditions under which it can be forfeited or returned, should be clearly outlined in the private purchase contract. It is essential for buyers to thoroughly review and understand these terms before signing.
- Legal Advice: Given the complexities involved and the significant financial implications, it is advisable for both parties to seek legal advice before entering into an arras agreement. A lawyer can ensure that the contract terms are fair and compliant with Spanish law.
Steps to Follow
- Drafting the Arras Agreement:
- Ensure that the agreement clearly specifies the type of arras (penitenciales, confirmatorias, or penales).
- Include detailed terms regarding the deposit amount, conditions for forfeiture, and the process for returning the deposit if necessary.
- Legal Review:
- Have a qualified lawyer review the agreement to ensure it complies with Spanish law and protects your interests.
- Verify that the agreement is properly signed and witnessed.
- Handling the Deposit:
- The deposit should be paid via a secure and traceable method, typically through a bank transfer to an escrow account.
- Avoid making cash payments or transfers to personal accounts to reduce the risk of fraud.
- Understanding Your Rights:
- Be aware of your rights and obligations under the arras agreement.
- Understand the consequences of withdrawing from the contract and the potential loss of the deposit.
Given the complexities and potential for significant financial implications, it’s always advisable to consult with a Spanish property lawyer before signing any agreements or paying any deposits. They can explain the specific terms of your contract and how they align with or differ from standard practices.
Remember, while these are the general principles, Spanish law can be complex, and there may be regional variations or recent legal changes. Always seek up-to-date legal advice for your specific situation.
Final Thoughts
When purchasing property in Spain, it’s crucial to protect yourself as a buyer and avoid potential pitfalls. First and foremost, ensure you hire a reputable, independent lawyer who is fluent in both Spanish and English who specialises in Spanish property law. This lawyer will help you navigate the legal complexities, verify the property’s legal status, and ensure there are no outstanding debts or legal issues associated with it.
Avoid using a lawyer recommended by the seller or estate agent to ensure impartial advice. This professional should be separate from the estate agent or developer and work solely in your interests. They will conduct thorough checks on the property, ensuring it’s free from debts, has proper planning permissions, and that the seller has the legal right to sell.
Another critical step is obtaining a Nota Simple from the Land Registry (Registro de la Propiedad). This document provides detailed information about the property, including its legal status, ownership, and any encumbrances. Cross-referencing this with the Cadastral information (Catastro) ensures that the property boundaries and descriptions match and that there are no discrepancies. Additionally, checking for a valid building licence and a certificate of occupancy (Cédula de Habitabilidad) is essential to confirm that the property is legally constructed and suitable for habitation.
Another vital precaution is to obtain an NIE number (Número de Identidad de Extranjero) before initiating any property transactions. This tax identification number is essential for various legal and financial processes in Spain, including property purchase. Additionally, consider hiring a reputable translator if you’re not fluent in Spanish, as all official documents will be in Spanish, and it’s crucial to understand every detail before signing.
One of the most common pitfalls is failing to verify that all utilities are properly connected and legally installed. Ensure that the property has approved connections to water, electricity, gas, and sewage systems, and that all utility bills are paid up to date. This can prevent future disputes and additional costs. Additionally, be cautious of properties sold with existing tenants or squatters, as Spanish law can make it difficult and lengthy to evict them.
Be wary of pressure tactics or requests for large cash deposits. Legitimate Spanish property transactions typically involve a reservation deposit of around 3,000 euros, followed by a 10% deposit once contracts are signed. Any deviation from this norm should be viewed with caution. It’s also wise to open a Spanish bank account for transactions, as this provides an additional layer of security and makes it easier to track payments. Make the payments to your solicitor, not to the seller or the estate agents.
Always be wary of deals that seem too good to be true. Scams often involve properties sold at significantly below market value or under high-pressure sales tactics. Never pay large sums of money upfront, especially if requested in cash or to overseas accounts. All payments should be made through secure, traceable methods, preferably via a Spanish bank account. By taking these precautions and thoroughly vetting every aspect of the purchase, you can significantly reduce the risk of being scammed and ensure a successful property acquisition in Spain.
Consider taking out title insurance. This can provide an extra layer of protection by covering any legal costs or losses if issues with the property’s title arise after purchase. While not mandatory, it can offer peace of mind and financial security. By taking these precautions, you can significantly reduce the risks associated with buying property in Spain and ensure a smoother, safer transaction.
Finally, be mindful of additional costs beyond the purchase price. These can include transfer tax (typically 6-10% of the purchase price), notary fees, land registry fees, and your solicitor’s fees. Factor these into your budget from the outset to avoid surprises. Also, be aware of the ‘plusvalia’ tax, which is a local tax on the increase in value of urban land. While this is typically the seller’s responsibility, some contracts may try to pass this onto the buyer, so it’s important to check and negotiate this point. Do not end up paying the sellers fees to the estate agent or dealing with any agents who try to charge a buyers fee.
As I said there are too many stories of people getting scammed when buying property. If it is too good to be true, it usually is. Deal with estate agents who are registered and legal, but make sure too that the property you are buying is FULLY legal, especially if there is a pool, it must be on the paperwork!
Happy hunting for your dream home!
