The earnest money contract is one of the most important steps in the process of buying and selling a home in Spain. For many foreign buyers looking to purchase property in Torrevieja, this moment can be daunting, as it involves paying a deposit and both parties committing to proceed with the transaction. However, before signing this document, it is essential to review several key documents that guarantee the security of the purchase.

The first essential document is the property registry extract. This document allows you to verify who the legal owner of the property is and whether there are any encumbrances, such as mortgages, liens, or restrictions. Without this verification, the buyer could assume debts or legal problems associated with the property.

Another essential document is the Property Tax (IBI) receipt. This document confirms that the owner is up-to-date on their property tax payments. It is also advisable to request a certificate confirming that there are no outstanding debts to the homeowners’ association, as these can be transferred to the new owner.

The certificate of occupancy, or first occupancy license, is another key element, as it guarantees that the property meets the legal requirements for habitation. In some cases, especially with older properties, this document may not be up to date, which could lead to complications.

It’s also important to check the energy performance certificate, which is mandatory for any property sale. This document provides information about the property’s energy consumption and is required to finalize the transaction.

In the case of homes with extensions or renovations, it must be verified that these are properly registered and have the corresponding permits. Otherwise, there could be planning irregularities that affect the value or use of the property.

For foreign buyers, it is especially advisable to have a specialized lawyer review all the documentation before signing the preliminary sales agreement. This step allows for the identification of potential risks, the negotiation of more favorable terms, and ensures that the transaction is carried out with complete transparency.

Signing a preliminary sales agreement without reviewing these documents can pose a significant risk, both financially and legally. Therefore, prevention and professional advice are key in any purchase or sale transaction.

Before signing a deposit contract, consult with A&G Lawyers and review all the documentation with complete confidence.