Buying and Selling Real Estate in Spain (Updated)

KEY FACTS OF REAL ESTATE ACQUISITIONS UNDER SPANISH LAW -

I. PROCEDURE OF A REAL ESTATE TRANSACTION -

1. Brokers -

A. In Spain, both parties are free to hire a Broker to conduct the conveyance process of real estate properties, representing their interest during the operation. It is not mandatory, however, to sign a service provision agreement between the Broker and the party parallel to the sale and purchase agreement. Whether there is a separate agreement usually depends on the level of closeness between them, i.e. if the broker is a close person to the party, they may verbally agree some terms. However, if obtained from the Land Registry (by requesting excerpts relating current liens and charges; Tax/Economic information may be obtained from the Town Hall and from the “ownership association” (“comunidad de propietarios”), if any, as under Spanish Law, who acquires a property is liable for the amounts owed to the ownership association and the payment of local property tax; and Town Planning information, may be obtained by requesting from the Seller or the Town Hall the Activity License/First Occupation License Actividad/Licencia (“Licencia de de Primera Ocupación”) for commercial/housing purposes or in the event of land, Town Planning information the real estate operation is complex or if the Broker also advises legally the party, they usually sign a service provision agreement and agree on professional fees.