Title Report, Liens and Building Checks Before Buying an Apartment

Before you sign, ask for the title report to check ownership and liens — mortgages, garnishments, easements — get a certificate proving the apartment is up to date with the homeowners' association, and check whether there are any approved or pending special assessments, what the building inspection status is, and what the energy certificate says. These documents cost little or nothing, and they warn you about problems you won't spot on a viewing: debts you could inherit and expensive work that is just around the corner.

You buy an apartment with your eyes, but you sign with the paperwork. The legal side is what causes the biggest headaches after the purchase, because debts and liens stay with the property, not with the seller. The good news: almost everything can be checked in advance, and cheaply. Here's the list.

Which documents should you ask for before buying?

There are five documents you should see before you put down a deposit: the title report, the association certificate, information about any special assessments, the building inspection, and the energy certificate. Let's go through them one by one.

The title report: who owns it and what liens it has

The title report is an extract from the land registry that costs just a few euros and can be requested by anyone. It's the most important document of all, because it tells you:

• Who the real owner is. Check that the person selling to you is the one listed as the owner. If there are several owners, for example because of an inheritance or a divorce, they all have to sign.
• What liens are attached to the apartment. Outstanding mortgages, garnishments, easements, special conditions or tax-related encumbrances. Liens don't disappear when ownership changes: if they're not cleared, they become your problem.
• The description and square footage. Use them to cross-check the listing and the cadastre.

If the title report shows a mortgage, that's not necessarily a problem: normally it gets paid off at the notary with the purchase money. But it must be clear in writing who pays off what, and when. A garnishment is more serious and should be resolved before you commit.

Debts to the homeowners' association

Here's the trap most people overlook. Under Spain's Horizontal Property Act, the buyer is liable for homeowners' association debts from the current year and the previous three years, even if the seller created them. To protect yourself:

• Ask for a certificate confirming that payments are up to date, issued by the building manager or the association secretary. It must be provided at signing unless you expressly waive it.
• Read the minutes from the latest meetings. That's where you'll find disputes, approved works, building issues and, above all, special assessments.

Special assessments: approved or pending

A special assessment is an extra payment approved by the association for major work, such as refurbishing the facade, replacing the lift or repairing the roof. These can run into thousands of euros, so always ask:

• Has any special assessment already been approved or discussed? A facade job or lift replacement that's about to happen is a bill that lands after you've bought.
• Who pays it? As a general rule, the person who owned the apartment when the assessment was approved at the meeting is responsible. But this is negotiable, and it should be set out in writing in the contract.

Special assessments are one of the hidden costs that don't appear in the listing and should be added to the price, just like the cost of renovating the apartment.

The building inspection: the building's MOT

The building inspection is a check of the building's condition that becomes mandatory once it reaches a certain age — usually older buildings — with deadlines that vary by region and municipality. Ask:

• Has the building passed its inspection and is it still valid? If it is due and has not passed, there may be fines and pending works.
• Was the result favourable or unfavourable? An unfavourable result means repairs have to be carried out, and those works are paid for with special assessments.

The inspection covers the building; you still need to check the apartment itself. Problems like damp problems or structural cracks won't show up in any document.

Energy certificate and certificate of habitability

The energy performance certificate is required for a sale and rates the home from A (most efficient) to G (least efficient). A low rating doesn't stop you from buying, but it does point to higher electricity and gas bills and, often, poor electrical systems or window frames. Depending on the region, you may also need a certificate of habitability or a first occupancy permit, which confirms that the apartment is legally fit to live in.

Make sure the cadastre and the registry match

Check that the square footage and description in the cadastre match the title report and the apartment itself. Any mismatch — a closed-in terrace that doesn't appear anywhere, square metres that don't add up — can cause problems with the mortgage, the taxes or a future sale.

How Pancho helps

Pancho reads the listing and flags the documents you should request and the warning signs you should check before the viewing, as part of the first of its three layers — listing, area and inspection. It doesn't replace your lawyer or the notary, but it gets you to signing with the checklist done and no loose papers. With a clean title report, dues up to date and a valid building inspection, all that's left is to inspect the apartment inside.