Many foreign buyers and sellers believe that a property in Spain must be completely free of debts or charges before it can be sold. The reality is very different: Spanish law allows a property to be bought or sold even if it has mortgages, embargoes, administrative debts, charges, or tenants.
What truly matters is knowing whether those charges are valid, expired, already paid, or will be removed at completion. And most importantly: if a buyer completes a purchase with active charges, those charges automatically pass to the new owner.
This is why the role of a qualified conveyancing Adviser is essential before signing any reservation contract or arras agreement.
Below you will find a clear explanation of how this works and why expert guidance protects you from expensive mistakes.
1. Properties in Spain Can Be Bought or Sold Even If They Have Charges
Spanish law does not prevent a sale simply because a property has:
- tenants or occupants
- paid or unpaid mortgages
- tax debts
- Social Security debts
- embargoes from courts or other authorities
- community debts
- notes of caution
- administrative sanctions
- other third-party claims
A property can legally be sold with any of these still registered.
The problem is not the existence of a charge, but its legal effect.
2. Important Warning: charges transfer automatically to the new owner
In Spain, if you buy a property that has valid and enforceable charges, you automatically inherit them on completion.
Once the purchase deed is signed at the Notary, the new owner becomes legally responsible for all enforceable charges attached to the property.
This is why it is vital to detect and resolve all real charges before signing.
3. Why some charges appear in the land registry even when they are already paid
A Nota Simple from the Land Registry often shows:
- mortgages that were paid years ago,
- embargoes that have expired,
- administrative charges waiting to be removed,
- or debts that no longer legally valid.
In Spain, the Land Registry is declarative, not automatic.
Even if a charge is paid, cancelled or expired, it will remain visible until the creditor formally requests its removal and the fee is paid.
This is normal — but only an experienced conveyancer can verify whether the charge is:
- irrelevant,
- expired,
- harmless,
- or a serious legal risk.
4. Why you must NOT sign the deposit contract without a legal review
The arras contract or deposit contract is legally binding and usually includes penalties for withdrawal.
Signing it without legal checks can trap the buyer into purchasing a property with:
- debts they did not expect,
- risks they did not understand,
- tenants they cannot remove,
- embargoes that the seller cannot pay,
- or charges that cannot be cancelled on time.
Once the arras are signed, it is extremely difficult to renegotiate or cancel the transaction.
A professional Adviser must review:
- The Nota Simple and all registry entries
- Mortgages (paid, unpaid or pending cancellation)
- Embargoes from Hacienda or Social Security
- Court and administrative charges
- Tenant contracts and occupancy rights
- Community debts or legal proceedings
- The seller’s ability to cancel all charges
- Contract clauses to protect the buyer
This prevents costly problems.
5. Mortgages: active, paid or pending cancellation
A mortgage can appear in the Land Registry even if:
- it was paid in full years ago,
- the bank no longer has any claim,
- or it is a technical entry pending removal.
If the mortgage is active, your adviser ensures that:
- the seller pays it before completion, or
- the outstanding amount is deducted from the sale price at the Notary.
Either way, the buyer is fully protected.
6. Embargoes and debts from tax office or social security
These charges can be serious, but they are often:
- small,
- expired,
- already paid,
- or removable before completion.
Your adviser must confirm:
- whether the charge is enforceable,
- how much is owed,
- whether it blocks the sale,
- and how it will be cancelled.
This ensures you never inherit the seller’s debts.
7. Why your adviser is absolutely essential
Buying or selling property in Spain is safe — if it is done correctly.
The risk appears when buyers sign documents or make payments without a proper legal review.
Your adviser is the person who:
- interprets the Nota Simple correctly,
- distinguishes harmless entries from dangerous ones,
- verifies the