05.01.2025 
Why Buying Property in Spain Without a Lawyer is Dangerous
Acquiring property abroad is a significant step, involving not only substantial financial expenses but also risks arising from unfamiliarity with local legislation. Many try to save money and complete the transaction without a lawyer, but later face hidden debts, problems with squatters, and other legal complexities. Below, we will examine the main pain points of the reader – a potential property buyer in Spain – and suggest solutions to avoid such traps.
Main Pain Points of the Buyer
1. Possible Debts and Encumbrances on the Property
One of the most common risks is buying a property with debts for utilities, overdue taxes, unpaid mortgages, or other financial obligations of the previous owner. In Spain, debt obligations can "transfer" to the new owner if the property was mortgaged or if there were unpaid bills.
It is also crucial to check whether the property is under seizure or serves as collateral for loans. For this, you need to study the Nota Simple from the Land Registry, which records encumbrances. However, the Nota Simple is often not enough, as debts for utilities or the Property Tax (Impuesto sobre Bienes Inmuebles - IBI) may not be reflected in the Registry. It is necessary to check receipts, certificates, and request all supporting documents from the seller.
2. The Threat of "Squatters"
In Spain, there is a serious problem with the illegal occupation (squatting) of housing. If your apartment or house is occupied by so-called "squatters," the eviction process can be lengthy, as local legislation protects the rights of individuals already residing in the property. To protect against such situations, it is helpful to install alarms and visit the property regularly, as well as having timely legal support to promptly file a police report and handle the case in court.
3. Misunderstandings with the Notary and the Lack of Distinction Between "Jurist" and "Lawyer"
Many believe that the notary verifies the "cleanliness" of the transaction. But the notary's role in Spain is limited to certifying the fact of signing the contract. In-depth legal expertise is carried out by a lawyer. In addition, in Spain, the profession of lawyer is strictly regulated, unlike a "jurist," who may not bear due responsibility for consultations. If the transaction is complicated by inheritance, debts, or disputed rights of third parties, a lawyer will help avoid serious problems.
4. Difficulties with Documents and the Language Barrier
Most legal documents in Spain are written in Spanish. If the buyer does not speak Castellano (the official Spanish language), the notary may require the presence of a certified translator. An error or misunderstanding in the documents can lead to the termination of the contract or additional expenses. Sworn translation of documents will ensure accuracy and avoid such errors.
5. Risks When Buying Land and Violating Urban Planning Regulations
When buying land, it is essential to ensure that construction is permitted on it. In Spain, there are different categories of land: urbana, urbanizable, rústica. If the land is classified as rústica, full-fledged residential construction may be prohibited. Furthermore, even a property registered in the Land Registry does not always comply with the local urban planning plan. A lawyer will check all zoning documents and, if necessary, help resolve the issue with the municipality.
The Role of a Lawyer in a Safe Transaction
To eliminate the above risks, it is recommended to contact an independent lawyer who exclusively considers the buyer's interests. Their tasks are:
- Legal verification of the property: analysis of debts, encumbrances, and property history.
- Checking documentation in the Land Registry and Cadastre: verifying the legality of buildings, compliance with zoning, and the absence of restrictions.
- Analysis of expenses and taxes: assessment of the Property Tax (IBI) and other tax obligations. Assistance with registration with the Spanish Tax Agency and obtaining the Foreigner Identity Number (NIE) for non-residents.
- Drafting and negotiating contracts: signing preliminary agreements (deposit, reservation contract), purchase and sale contracts, checking deadlines, conditions, and the safety of deposited funds.
- Protection against fraud: explaining the specifics of payments, including currency fluctuations, and advising on the use of cryptocurrencies or other forms of payment.
- Compliance with transaction deadlines: coordination with the notary, translator, and other parties to avoid delays and penalties.
How to Avoid Problems with "Squatting" in Housing
If an apartment or house remains empty for an extended period, it is advisable to take measures:
- Alarm: an alert system will help detect unauthorized entry within the first 72 hours, when the police can still be quickly involved in the eviction.
- Regular checks: a power of attorney to a lawyer will allow prompt filing of a police report and monitoring of the situation.
- Avoid "forceful" methods: resorting to dubious "anti-squatting" services can lead to accusations of threats and prolong the legal process.
Why the Bank and Notary Do Not Guarantee the Cleanliness of the Transaction
The bank specialist only checks the borrower's solvency, and the notary confirms the signing of the contract. Neither of them is responsible for the legal verification of debts, technical characteristics, or the legality of the construction. These functions are entrusted to the lawyer, who acts in the interests of the buyer, not a third party.
Consequences of Mistakes After Purchase
Refusing the services of a lawyer can lead to:
- Payment of other people's debts and fines;
- Loss of time fighting squatters and legal proceedings;
- High costs for the removal of unregistered buildings if they do not comply with urban planning regulations;
- Difficulties with subsequent resale or inheritance of the property.
How the Transaction Formally Takes Place
1. Document Collection
The buyer needs to obtain the Foreigner Identity Number (NIE), as well as prepare copies of passports, the Nota Simple from the Land Registry, and a certificate of utility debts. The seller must provide a certificate from the community of owners confirming the absence of outstanding fees, as well as receipts for payment of the Property Tax (IBI).
2. Preliminary Contracts
Often, the parties sign a reservation contract or a deposit contract. This involves paying a small amount to take the property off the market. This may be followed by an option contract or a private purchase and sale contract with a payment of 10-30% of the final price. Here, the lawyer determines the payment scheme and sets out penalties for breach of obligations.
3. Signing Before a Notary and Payment
In the final stage, the lawyer checks the conformity of all documents and is present at the signing. If the buyer does not speak Castellano, a certified translator is involved. After signing the contract, a check for the remaining amount is issued or a bank transfer is made on the day of the transaction.
Conclusion: Safety First
Buying property in Spain without a lawyer can lead to serious problems: whether it's other people's debts, encounters with squatters, or misunderstandings of local legislation. For the transaction to bring only positive emotions and avoid unpleasant surprises, it is important to promptly contact a qualified lawyer, study all documents, and take into account the requirements of Spanish law. This way, you will protect your investment, save time and nerves, and, most importantly, be guaranteed to get the home of your dreams without hidden pitfalls.
