Escritura Publica de Compraventa. (Public deed of Sale)
The Escritura Publica de Compraventa is a document which in England would be known as your Title Deed. The moment at which a property changes hands the transaction must be witnessed by A Notary (Notario) and this document must then go to the Land Registry in Madrid and you or your mortgage company will receive it back in due course.
You can ask for a copy of this document called a Nota Simple before you leave The Notaries’s office. Only those whose names appear on the Escritura are allowed to sell the property.
If you are buying a resale property and you cannot see the Escritura or the Nota Simple then something is wrong. Don’t hand over any money whatsoever until this situation is resolved.
When buying a brand new property the very first Escritura is issued by the Town Hall and on occasions the property can often be completed before the title documents have been drawn up by the Town Hall. You may be able to take delivery of your property but you will have to wait until all the documentation is ready before you can see the Notary and finalize the matter.
This is not unusual in Spain but the documents from the Town Hall will arrive sooner or later. Patience is the best policy at these times.
Do ensure that you receive your certificate of first occupation from the builder.
Your solicitor or gestoria should deal with this matter for you.
Note: When buying a resale property it is essential to have this document thoroughly checked out by your solicitor. It is the only document that ensures the owner has title to the property.
Remember, if you can’t see this document or the Nota Simple something is wrong.
Selling property Pre-Escritura.
Selling Pre Escritura is a term that you will come across on occasions. This is not for the faint hearted, it basically means this...
A person or persons has made an arrangement or contract with a builder and has bought an option or more than one option to purchase a particular property or properties. To buy this option can cost as little as 10% of the full asking price. They buyer will not have entered his or her name on any document therefore the Town Hall and the Tax Authorities know nothing about the arrangement.
This person can then ride the property market while the property is under construction and then prior to completion can either purchase the property legally or sell on the rights to purchase that property to another person for a cash profit.
It is a risky business if the market turns on you and if you can’t sell the property to another person by the time the it’s ready you will have to complete the purchase or lose your deposit money.
It is also an illegal tax dodge. We don’t recommend it despite what the bar room Lawyers will tell you.