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News and Views

Number of Foreclosures Fall by a Third

Mortgage Payments Easier.

Repossessions have fallen year on year and quarter on quarter. The table below shows the third quarter for 2017 down about a third on number of foreclosures. The same quarter four years ago showed more than 23,600. In the third quarter of 2017 this had fallen to just over 9,000.

1st quarter2nd quarter3rd quarter4th quarter 
201717.00013.6059.025 . . .
201619.33720.99814.66218.107
201531.18228.95419.62522.716
201432.64533.06923.60831.217

Foreclosure statistics down down down.

These clearly show number of foreclosures falling. These figures relate to all rural and urban properties. The information is broken down based on variables such as the type of building, system, status and owner of the properties being repossessed. The Association of Land and Mercantile Registrars of Spain (CORPME) provides centralised information to the INE – the centre for National Statistics in Spain.

This is, of course, great news and a strong indicator of a recovering economy. The other side of this analysis is there are fewer repossessions coming onto the market.

Are you looking to enter the housing market? Do you have a  good income, but not much money saved for a deposit?

You could take advantage of a 100% mortgage offered by a bank that has properties on its books. We recommend that you take a look at the housing market now.

If you prefer to absorb the information with graphs, please see below:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home buyers

We have repossession properties available with various banks – some of which offer residents up to 100% mortgage and non residents around 85%. The normal requirement is that you have money to cover taxes or approximately 10% of the total amount borrowed.

Investors

For those of you looking to make a cash purchase or with up to 30% down payment the range is greater as it includes motivated sellers and private distressed sales. There has never been a better time since the crisis to buy a property. For the first time this decade property sourcers and investors are seriously considering buying to reform and sell on within a relatively short term.

Contact us to see if any of the repossessions on our books could be what you are looking for.

 

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Buy Sell Properties Spain

Buying and Selling homes in Spain

Protect Yourself with those Property Bargains in Spain.

There was a time when properties were sold for two different prices, coyly known as ‘A’ and ‘B’ monies. The ‘A’ price was on the Title Deeds and the ‘B’ was cash in hand counted with spit dampened fingers far from the Notary walls. Even today the Spanish tax office turns a blind eye on a 15 – 20% difference plus or minus from the normal market price. Don’t be tempted though. In general, they don’t trust you and suspect something is afoot if you get too much of a good deal or agree to a bad bargain on your part. A Buyer will end up paying tax on the amount the government thinks the property was really sold for, the imputed amount. The only way to avoid it is to get a property valuation done and take your claim to court. Costly and time consuming if you lose.

For those of you interested, the imputed amount or REAL VALUE is based on coefficients from town halls, the Title Deed Price and the Cadastral Reference – based on sometimes dated surveys of land boundaries. By or before July 2018 a land law reform is being introduced. Current recommendations by a government commissioned think tank is to change the REAL VALUE to reflect only the Title Deed Price. Another idea being mooted is to start charging a local capital gains tax on rural properties as well as the current policy of applying it to urban properties on gains from selling your property.

As we’ve seen, sales have picked up, still not a high percentage of conveyances, although slowly improving. The years of recession from 2007 hit Spain well below the belt with repossessed properties and ghost towns of brand new housing estates. In the noughties so many people were dependent in one way or another on the construction industry. When it ground to an almost complete halt, so too did the country. Fortunately, people and things evolve; no-one wants to return to those dark days, but the unscrupulous soon left the industry – why would they stay? There were no longer any rich pickings. The agents and agencies that managed to hang on in there during the lean times came through with a limp and a smile. Many, like TMT Spain Real Estate, offer more to Buyer and Seller as a matter of course. We feel we have a duty to explain and inform, both to our clients selling and the applicant looking to buy. Clearly, both form part of the same process.

An agent is just that, an entity acting on behalf of another. When it comes to properties the relationship is a tad contrived. The Buyer is usually an interested party whilst our client is almost always the Seller – but both come together in a bargain of offer, acceptance and consideration. The process can be incredibly fast or proceed slowly and cautiously. We don’t mind, we’re there to help however long the journey. Our local knowledge and connections are relied on by Seller and Applicant alike. Whether it be by acting merely as a de facto tourist information service – every Estate Agent recognises that function, or making sure you understand how properties are bought and sold. Our neck of the woods is the autonomous region of Andalusia, Spain.

Be Safe – Learn the Process of Buying & Selling Resale Properties in Andalusia.

There are many more Resale properties on the market than new builds, but you can once more see cranes along the skyline. This is happening because of unfinished promotions being revamped and also due to brand new green field sites being built – both courtesy of new Land Law Legislation for Developers and Promoters to take the plunge and invest in Spain.

If the house you want to buy has had others living there already, a Resale, termed ‘second-hand’ in Spain, you need to check the following documentation:

  • Title Deeds. Make sure the person selling the property really is the owner or authorised to sell. We check this as part of our general due diligence when we list a property.
  • Ownership and status of housing charges. (Simple Note of the Property Registry). For this you need to ask for ‘Datos Registrales’ which give ‘Finca, Tomo, Libro & Inscripción’ stating what the property registration number is and where it is filed – both literally and in which district. This information is on the Title Deeds or a copy of a ‘Nota Simple’
  • Last annual IBI receipt (Council Tax or Urban Tax, Impuestos Bienes Inmuebles).
  • Community of Owners’ receipts proving that the seller is up to date with payments of shared community expenses. (It’s a proprietor owned management company.)
  • Latest receipts of utilities: water, electricity, gas, etc.
  • Completion on Property. If the conveyance follows the normal convention the Seller pays the costs of cancelling his/her mortgage and the bulk of the Notary costs for drafting the new Title Deeds. The Buyer pays for the Title Deed copies, registration fees and, as appropriate, VAT or Property Transfer Tax. However, it is not mandatory to follow that convention although common.

The Buyer should allow approx. 12% – 15% on top for costs. You pay Stamp Duty, Transmission Taxes, Notary Fees and Land Registry Fees. Plus, lawyer’s fees should you decide to instruct one. (It is not obligatory.) In the past, you also had to pay the mortgage lenders’ Notary and Stamp Duty costs for putting the mortgage in place – which with the admin fee added up to about 4% of the amount borrowed. But this practice has been ruled out by the Supreme Court as an unfair contract term and now you only pay an admin fee on taking out the mortgage and any costs that fall directly to you. Those who paid this in the past can claim back these costs providing the mortgage is still in place or was paid up in the last four years. Refunds in Andalusia are on average 4,313 € according to the property portal Idealista and Legal Services Provider, Reclamador. (a ‘crowd complainer’ platform,). The protection available for the consumer does serve to underline how the legislature has acted to inject confidence in the property market once more.

Property Taxes are levied against the price of the property as stated in the Title Deeds. At the time of writing, assuming no special cases, the Seller pays 8% ITP on a property up to 400,000 €, 9% from 400,001 € up to 700,000 € and 10% thereafter.

Garages and Parking Spaces in Underground Garages can either have a separate Property Title Deed or be annexed to the Residence’s Title Deed. For separate Deeds it’s 8% tax up to 30,000 €, 9% to 50,000 € and 10% thereafter for a maximum of 2 garages or parking bays. Make sure you know which parking space belongs to the house or apartment that you are buying, it’s an area that can sometimes be overlooked. The applicable Property Taxes are the same as for properties when sold in the same Deeds.

Property Sellers are responsible for:

  • Certificate of Energy Rating. ‘Calificación Energética’. Drawn up by an architect evaluating the energy consumption of the dwelling. In Andalusia, almost all resale properties rate as Grade E, with Grade A being the highest, it may not be perfect, but it is normal.
  • Town Hall Capital Gains Tax – Incremento del Valor de los Terrenos de Naturaleza Urbana (IVTNU), more commonly known as plusvalía municipal. The clue should be in the name – you have to make a capital gain to pay this. But many local authorities have been exacting payment form Sellers even when they sold at a loss, basing the value on the cadastral reference as well as the old inflated market prices and opting for whichever price was higher. Note, a Supreme Court decision enshrined in law 15th June 2017, has made it illegal for town halls to invoice Sellers for this if they have sold their home at a loss. People who were forced in the past to pay it despite making a loss can now claim this tax back from the Town Hall. It’s an odd remedy called a revocation process (Procedimiento de revocación.) What makes it strange is how the decision to go ahead with the claim lays in the hands of the local authority. (IKR.) Court decisions are now starting to create their own precedent.

Buying Off Plan or New Builds confirm the following:

  • Works Licence in place
  • Bank Guarantee to protect in case developer goes belly up
  • Occupancy Licence issued before completion
  • Building Specifications have been adhered to
  • Stage Payments where appropriate coincide with actual completion of construction stage as described
  • Snagging List done and signed by both parties
  • Utilities supply and connection paperwork formalised
  • Value Added Tax is 10%

Other than that, enjoy your home in the sun, by a pool in summer and a wood burning stove in winter.

There’s never been a better time this decade to move home or shuffle portfolios.

And if you are looking to buy or sell a property in Southern Spain, get in touch with TMT Spain Estate Agents – we’re happy to help.

 

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Property Purchase Taxes Andalusia

Property Taxes in Andalusia when Buying a Property

Property Taxes when Buying a Property in Andalusia

Buying a property in Spain is a straight-forward process. Each autonomous region has the right to set its own taxes, so differences do exist, although small. We help people buy and sell properties in Andalusia, in the provinces of Málaga and Cádiz. So, we provide information from the Junta de Andalucia’s website regarding the taxes levied on purchase and you can find general information on taxes levied on the Seller by the Town Hall, here. On the whole, budget about 13 – 15% on top of property purchase price for attendant costs. (Buying at auction has different requirements, find more here.)

 

Tax Payable – New Properties

First Transmissions of properties attract 10% tax plus a stamp duty on the drafting of the first title deed which is 1.5%. Total is 11.5%

 

Tax Payable – Resale Properties

For most people you pay 8% up to the first 400,000€, 9% on next 300,000€ and 10% on all amounts accruing after that.

The amount owing is calculated by multiplying the relevant band with the applicable coefficient as follows:

  1. Transfer of Tangible Assets

a) Property Transfer:

  • As a general rule, in the transfer of immovable property, as well as in the constitution and assignment of rights in rem over them, except in the real rights of guarantee, the tax rate will be obtained by applying, on the basis of the liquidation, the rate that results from the following rate:
Band payable in EurosTotal Fees EurosAmount Due EurosRate Applicable
0.000.00400,000.008.00%
400,000.0132,000.00300,000.009.00%
700,000.0159,000.00There after10.0%
  • Garages attached to the Property Purchase are included in the rates above, with a maximum of two. After which, in the case of transmission of buildings classified as urban parking space, the following rates apply:
Band payable in EurosTotal Fees EurosAmount Due EurosRate Applicable
0.000.0030,000.008.00%
30,000.012,400.0020,000.009.00%
50,000.014,200.00There after10.0%

b) Transmission of movable property and livestock

(as well as the constitution of real rights over them other than the guarantee):

  • 4 %, in general
  • 8%, on the transfer of boats of more than 8 metres in length and on vehicles of more than 15 horse power and objects of art and historical antiquities.
  • 5% in the transmission of real estate where the real value does not exceed 130,000 euros and it is to be the Buyer’s permanent residence and the buyer is under 35 years of age, or 180,000 euros in the case of a permanent residence where the Buyer suffers from a disability which is registered and measured as being equal to or greater than 33%.
  • 2% in the acquisition of housing for resale by a natural or legal person who carries on a business activity to which the rules of adaptation of the General Plan for the Real Estate Sector apply. (Aimed at constructors, developers and banks with repossessions, for example.)
  • 1%, for financial instruments of real security rights, pensions, bonds, loans and cession of credits.
  • Leases are governed by the scale of tax fixed by Law.

* With effect from January 1, 2015, tax rate offsets will be applied in the creation and exercise of purchase options in lease agreements related to certain payment operations.

Budget 13 – 15% on top of Property Purchase Price

In addition to the taxes there is also the need to pay stamp duty for new builds on the pages notarised for the Title Deeds, as well as general application of Notary’s fees, Land Registry fees and Lawyer’s / legal assessor’s fees (Gestor).  These days, most mortgage set-up costs are assumed by the lender. As a rough rule of thumb, allow 13% – 15% on top of the Purchase Price and note stamp duty for new builds.

Disclaimer: TMT Spain Real Estate has provided this information as a general guide only and it must not be relied upon in place of legal advice. Legislation is constantly updated and the reader must satisfy herself/himself of the accuracy of these contents.

 

“The ache for home lives in all of us, the safe place where we can go as we are and not be questioned.” 
Maya Angelou

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Property Prices Slowly Rise

Property Prices Slowly Rise in Spain

Andalusia once more posting strong results as property prices continue to rise in Spain.

Good news from the Institute of National Statistics for Spain (INE) – the property market continues to bounce back. House prices continue to rise albeit slowly. Andalusia strong in new builds and climbing steadily in Resales. The first quarter of 2016 is still the highest average figure for sales, notwithstanding, the Real estate Market is moving again. If you are considering buying a property, now is the time to commit, before prices rise even higher. Those of you thinking about selling, the average time for sale of a property is approximately 9 months – beat the trends and list with us!

HPI – SECOND QUARTER 2017

  • Housing prices are up two points over the previous quarter.

Annual evolution of housing prices

  • The annual variation of the Housing Price Index (IPV) in the second quarter of 2017 increased by three tenths and stands at 5.6%.
  • By type of housing, the annual rate of new housing prices is 4.4%, more than one point lower than the previous quarter, with consistent growth in property sales for Andalusia.
  • Meanwhile, the annual variation of Resale housing rose by half a point, to 5.8%.

Property Prices Slowly Rise

Quarterly evolution of housing prices

  • The quarterly variation of the general HPI in the second quarter of 2017 is 2.0%.
  • By type of housing, new housing prices rose 2.6% between the first and second quarters of 2017. Whilst, ‘second hand’ or ‘resale’ home prices rose 1.9%.

Property Prices Slowly Rise

Results by Autonomous Community. Annual variation rates

  • A total of eight autonomous communities increased their annual rate in the second quarter of 2017. The highest increases are recorded in the Balearic Islands, the Basque Country and Cantabria, with increases of 1.9, 1.2 and 1.1 points, respectively.
  • Andalusia is up 0.3 points over the last quarter.
  • In contrast, the greatest decreases of the annual variation occur in Aragon, Principality of Asturias and Castile and Leon, with declines of 2.1, 1.7 and 1.0 points, respectively.

Annual HPI Rates Second Quarter 2017

Property Prices Slowly Rise

Results by Autonomous Community. Quarterly variation rates

  • Most of the Autonomous Communities have positive quarterly rates in the second quarter of 2017.
  • Community of Madrid, Cantabria, Basque Country and Catalonia recorded the highest increases (of 3.4%, 3.2%, 2.9% and 2.9%, respectively).
  • Andalusia once more posted a strong quarterly variation rate of 1.6%
  • For their part, Principado de Asturias (-1.0%) and Extremadura (-0.2%) are the only communities with negative quarterly variations.

Property Prices Slowly Rise

 

These statistics are taken direct from INE’s Press Release dated 8 Sept 2017.

If you are thinking of re-entering the property market in Andalusia as either a Buyer or Seller and are in the provinces of Cadiz or Malaga, get in touch to see how we can help.

Get in Touch!

Related Posts: 2016 Growth    First Quarter 2017   Brexit Initial Response

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Town Hall Tax

Town Hall Tax Abolished for Negative Equity

Town Hall Tax Abolished for Negative Equity

Jerez, famous for sherry, horses, motorbikes . . . and common sense. No gain = no profit = no tax. Right? Wrong.

Anyone who had to pay tax to the Town Hall when selling a property at a loss will be delighted to hear that the local government laws in Spain are changing. It is a shame that it has taken this long, especially when during the leanest years people had no redress. Anyhow, it is good news that the property market has turned the corner and it is safe to say there will never be a better time to buy. Because prices are going up.

Having said which, when the bubble burst the fall out was considerable and cases are still being decided. Thankfully, sellers with negative equity are now being treated fairly. There was a landmark case on Feb 16th of of this year where a national judge determined that a seller with negative equity should not be liable for a tax to the Town Hall which demanded payment just because the property was sold. This case was huge as it partially rewrote the Constitution. Other cases were also decided in the same vein, until a leading Judgment tried to stamp order on proceedings. (Case 59/2017 in May in the Administrative and Constitutional Law Courts of Jerez,) A major Bank foreclosed on a Real Estate Company and the prices adjudicated were 50% of the price the company bought them at. A clear example of negative equity. To add insult to injury, the Estate Agents received an invoice from the Town Hall for Capital Gains. There were not any. So they turned to the Courts for justice. The judge hearing the case declared articles 107.1, 107.2 a) and 110.4 of the Local Authorities Tax Laws were unconstitutional making them null and void in respect to negative equity. The Court also invited the legislature to change the law. The judiciary is bound by legislature, but on this occasion the judicial tail wagged the legislative dog and brought it to heel.

Draft Bill Going Before Legislature

While all of this was happening, a Draft Bill was being prepared to go through parliament; it is now in the final throes, but from May 2017 until the end of July 2017 the courts were deciding on a case by case basis. The lacuna still existed where the tax had to be paid even when selling at a loss. Such instability had to be stemmed and it was. The hapless victims of negative equity can now reclaim what they had to pay.

In July 2017 new legislation passed which amends the Local Authorities Taxation legislation and redacts clauses in the Constitution to enshrine a right in law that no tax is due if no profit has been made. So, in future people selling at less than the purchase price will not have to pay. But those who already have done so despite negative equity can claim it back. It may be subject to four years of Statute of Limitations, at this stage that fact remains unclear. What is certain is that up until the end of July 2017, taxes had to be paid even when no profit accrued.

In theory, all legislation covers everything. Especially taxes. In practice, this is the problem. Tax law is governed largely by the General Taxation Law and Article 57 permits seven different methods to be used independently or in combination with any or all of the others to arrive at a method for any given autonomous region. Phew. In Andalusia, for example, 3 different coefficients are analysed to arrive at the ‘real values’ that are used. (revised cadastral values, market value and variations in market value.)

The old name for this local authority tax is Plusvalía which could be translated as capital gain or ‘above value’ Significantly, the name was changed a few years ago, to Impuesto sobre el Incremento del Valor de los Terrenos de Naturaleza Urbana (IIVTNU) A tax on the increase of the value of the land. It seems counter intuitive, then, to charge a Seller after they sold at a loss and have negative equity. Even so, the local authorities continued applying a charge on any urban property sale according to their own legislation. They based their figures on calculations arrived at from before the collapse of both the property market and fall of the banks in 2008. Up until this July 2017 a few different methods were used. The most prevalent being a rigid formula which looked at the rate of land assessed by the local authority via the Cadastral Rate – roughly half the title deed price – and then a sliding-scale of coefficients applied. (With 20 years of property ownership as a cut off point.)

Local, autonomous, and federal tax authorities all agree that a clearer blue print is needed for fiscal certainty. The way the Bill currently leans, the title deed price will be preferred to the Cadastral Value in the case of a loss – unless the authorities contest these values.

The Bill still has not become Law, but an interim measure exists in an amended law which allows anyone who paid tax on a property sold at a loss to claim their money back. The date this became law is 15th June 2017, in essence, backdated at the date of the new interim statute. Curiously, it is valid until the end of July 2018. As if not having an expiry date would prevent legislation being passed into law.

It seems people will have four years from 15th June 2017 to claim back monies that were forked out when a loss was made. It is equally unclear how far back people can claim from.

Light at the end of the tunnel

Proposals have been submitted to make the laws more homogenous. A committee of experts has recommended a single method for all autonomous regions to use based on title deed price. This would be applied to urban and rustic property alike.

In order to avoid double taxation, taxpayers would be allowed to deduct the tax paid from the tax base of the other taxes that also tax the capital gains (IRPF). In practice, it is often accepted that if you paid the Town hall tax you don’t pay it again on your IRPF for residents and IRNR for non- residents declaring assets held in Spain.

The recommendation is that the taxable base would no longer be calculated by applying increment coefficients but by calculating the actual increase obtained by comparison between the transmission value and the acquisition value. In order to avoid double taxation, taxpayers would be allowed to deduct the tax paid from the tax base of the other taxes that also tax the capital gains (IRPF)

Good to know.

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Judicial Auction in Spain

Judicial Auction in Spain

What is a Judicial Auction?

It is an auction authorised under Spanish Law and executed by the law courts to sell a property usually burdened with debts. Without this special action, the property cannot be sold because of a mortgage or other charge levied against it which acts to prevent its sale as you cannot buy good title.

Anything that has an economic value can be auctioned: real estate, vehicles, furniture (Jewellery, pictures, machinery, etc.) and any other class of goods or rights.

The asking price is agreed between the creditor and debtor or by reliance upon a Judicial Report and in practice calculates the amount outstanding on the debt plus interest and costs, in an unpaid mortgage for example.

A Judicial Auction can also be used in the case where there are co-owners so that it acts alike a Trust for Sale where the money is divided up and allotted by the courts on a case by case basis.

The auction is presided over by a court clerk, who is also responsible for transmitting and delivering the sale.

Buying Existing Debts

Clearly, you need to know if the item being auctioned is sold subject to or free of debts and third party rights.

In the case of several charges against the property or goods, it is straightforward to know which is the one that gives rise to the auction, because the registrar states with respect to it that “it subsists and is not cancelled.”

By the mere fact of participating in the auction, the bidder acknowledges notice of the charges or third-party rights which appear on the Property Registry Certificate which were lodged prior to the Creditor’s claim that is being realised by the auction.  These rights to property or money lent against the property remain valid. And if you are finally awarded the Property, you agree to place yourself in the place of the previous debtor, so you will have to honour those debts. Make sure you know what remains outstanding prior to entering into the auction.  You are not liable for any charges which accrue after the notice of auction of the property. Should such a situation arise the Court clerk may order the Property Registrar to cancel them. The only thing that you would have to pay is your fees and taxes for that cancellation.

What if No Bids at Auction?

When the auction is held and no-one makes any bids, this fact is declared by the auctioneer. The next stage is where the Creditor who brought the auction requests an adjudication by the courts to arrive at a price for sale.

Certain factors must be taken into consideration:

If it is the main home of the Debtor that has been auctioned, the Creditor cannot ask for an adjudicated selling price of less than 70% of the valuation price. An exception to this is when all of the debts levied against the property are less than 60% of the property valuation.

In the case of a second home or any property that is not the Main Residence, the Creditor cannot ask for an adjudicated price of less than 50% of the valuation unless total debts, as in the above situation, are less.

In the case of Goods/Chattels the Creditor cannot ask for less than 30% of the valued of the Goods.

If the Creditor did not ask for an adjudication, the embargo on the property would be lifted.

Charges Against Property.

The law requires that this certification be available to all interested parties at the Judicial Court where the right is lodged.

In some cases, it may also be available through the internet, in the Portal of Judicial Auctions of the Portal of the Administration of Justice.

Where applicable, the file will also contain information relating to any goods auctioned.

How Much to Bid at Auction.

If the auction is brought because of an unpaid mortgage it’s generally just these debts and costs incurred. If a valuation has been placed on the property by a Valuer and it includes outstanding debts in effect at the time of the request for a Judicial Auction, these subsisting charges must be deducted from the auction price so the bidder knows what is outstanding from the Creditor bringing the action. You would be liable for the other debts itemised in the Property Register as still standing.

Bid Accepted. Now What?

If your bid is the highest you do not know for certain that you have acquired the Property/Goods until the Court Clerk issues a Resolution which is decreed and approved. Until that point, the debtor can claim back rights to the property by payment in full of the debt outstanding. Where you have underbid (less than 70% or 50% respectively,) and been the highest bid at auction the courts can offer the Debtor and the Creditor the right to raise the price and claim the auctioned property or goods.

If your bid has been successful, but you fail to come up with the money in a set time frame, the other bidders have the right to buy at the price settled at auction by your highest bid. (You have 10 working days to pay in the event of Goods/Chattels and 40 working days for property.) If you don’t put the money together in time you lose your initial stake and the auction is deemed ‘bankrupt auction’.

Transmission of Property and Tax Due from Assignment after Adjudication or Highest Bid

The Creditor bringing the Auction can avoid paying the Property taxes in the event that the property will be assigned by the Creditor to a third party via auction or adjudication. This can be done in the event where the Creditor is the sole bidder and also where there are no bids at all.

Buying at Less than Amount Owed

When you succeed at auction and your bid is less than the amount outstanding against the Creditor who brought then action you are not liable for the outstanding amount. The amount you pay is put towards the Debt and the Creditor then has the right to offset this outstanding amount by going after any other assets the Debtor may have.

Property Taxes

There is no pre-requirement of registering ownership in the Land Registry before receiving the property, but you must pay the taxes and it is this that allows the Courts to confirm the purchase and if necessary evict the previous owners. This also allows you to then register the property in your name at the Land Registry.

Queuing Creditors

Always be aware of outstanding Creditors waiting to be paid. That is why they have placed a charge against the property and in so doing have earned the status of Priority Creditor. In the case of a second or third mortgage against the property the Buyer is expected to pay the updated charges including interest. If you consider them to be excessive you can lodge an appeal.

If you think you might like to take part in a Judicial Auction and don’t wish to do it yourself, get in touch to find out more.

Please note this has been based on content redacted and informally translated from Guia nº 5 Subastas Judiciales. TMT Spain has provided no more than an overview and it is not in any way to be relied upon legally.

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