07 Escritura de Compraventa, Copia
Simple and the Escritura Publica
As mentioned previously, the contrato de compraventa is a private contract, and as such it cannot be inscribed in the Property Register and may not be accepted by third parties as proof of ownership of the property.
To register the property it is necessary to convert this private contract into a public deed: this is done by the Escritura Notarial (notarial act), whereby the notary confirms that the transaction is in conformity with the relevant legal requirements and that the necessary transaction taxes have been paid, and witnesses the signing of the documents by both the vendor and purchaser.
The contrato de compraventa is thereby converted into an escritura de compraventa (deed of conveyance) which can then be inscribed in the Property Registry, when it becomes an escritura publica, providing official proof of ownership to all third parties.
All parties to the contract must be present to sign the escritura at the notary’s office, including a representative of the bank if the purchaser is arranging a mortgage. If a person cannot be there, he must arrange a poder (power of attorney) to allow someone else to represent him. As mentioned above, the vendors are all the people registered as owners in the Registro. If there have been any changes to the ownership, such as a recent death of one of the owners, this change must be notarised and registered first, before the property can be sold.
The notary is a public official: his role is to ensure that the relevant Spanish legislation has been complied with, to advise the parties of their tax obligations, to certify that the contract has been signed by the specified parties, and (very important) to certify that all the money has been paid. He does not in any way advise the parties to the transaction, nor does he check that statements made in the contract are true. It is the lawyer who must be instructed to do this.
The copia simple is, as its name suggests, a simple copy of the escritura. It is the document the buyer needs in order to pay the plusvalía and to transfer or register for contribuciones (these are payments towards the local rates, the IBI), electricity, water, telephone or other services, change the address on his bank account etc. The notary will give you a copia simple once the escritura has been signed.
If you are buying with a mortgage from Caja Duero or other Spanish Banks, they have a service “Servicio de Alta de Suministros” to help you deal with all the utilities – water, electricity, telephone and gas. For a nominal payment and by completing one simple application form, the bank will contact all the utility companies on your behalf and arrange the services you require. There is also a 24 hour helpline and an e-mail contact address where you can receive personalised advice.
If the property is to be registered, the notary will send the primera copia (first copy) of the escritura to the Registro together with the receipts for the taxes paid. Make sure the notary does this by fax the same day. The Registro will then enter it immediately into the daily journal in order to prevent any other charges being registered ahead of yours.
Once the primera copia has been fully registered it will be allocated its registration number, stamped and returned to the notary, from where it can be collected by the new owner. This process usually takes a couple of months.