The Costa del Sol property market continues to attract thousands of foreign buyers each year. Whilst the dream of owning a Spanish villa or apartment is appealing, many expatriates encounter serious legal complications that could have been avoided with proper guidance. This article examines the most common pitfalls of buying property in Spain and how foreign residents can protect their investment.
Understanding the Spanish property purchasing system
The Spanish conveyancing process differs significantly from that of the UK and other European countries. One of the most critical differences is the absence of a solicitor acting as an intermediary between parties. Instead, a notary merely formalises the agreement without necessarily protecting the buyer’s interests.
Common legal pitfalls to avoid
1. Undisclosed debts attached to the property
Properties in Spain may come with outstanding community fees, utility bills, or even mortgage debts that automatically transfer to the new owner upon purchase. According to the Spanish Land Registry, approximately 17% of foreign property purchases involve some form of undisclosed debt.
2. Illegal constructions and planning issues
Many properties, particularly in coastal areas, may have been built without proper permissions or with additions that violate local regulations. These can result in substantial fines or even demolition orders.
3. Incorrect property boundaries
The cadastral description (official property record) may not accurately reflect the actual boundaries of the property, leading to disputes with neighbours or authorities.
Real-life scenarios buyers may encounter
Many foreign buyers have found themselves in complex legal situations after purchasing property in Spain. For instance, some discover that their dream villa has parts built without proper permissions, or that common areas shown in promotional materials were not included in the final deed.
In one case, a British couple purchased an apartment in Marbella only to discover €8,000 in unpaid community fees that legally became their responsibility after the purchase was finalised.
Frequently asked questions about Spanish property purchases
Do I need a Spanish lawyer to buy property safely?
While not legally required, engaging a specialist property lawyer who represents only your interests is strongly recommended. Your lawyer should conduct thorough due diligence, checking for debts, planning permissions, and ensuring all documentation is properly registered.
What checks should be done before signing a purchase contract?
Essential checks include verifying the seller’s true ownership, confirming there are no debts or charges on the property, checking planning status with the local town hall, and ensuring the property description matches reality.
How can I protect my deposit when buying Spanish property?
Always ensure your deposit is held in a segregated client account and that contracts include clear conditions for its return should legal issues be discovered during the due diligence process.
Use a proper legal professional to protect your investment
The pitfalls of buying property in Spain can be numerous. Only with proper legal guidance foreign investors can safely navigate the process. Always engage an independent Lawyer specialized in property law to conduct thorough due diligence, and never rush the purchasing process, regardless of pressure from agents or sellers.
