Out of all of the professionals you will deal with when you are searching for and buying a property in Spain, your lawyer (Abogado) is the most indispensable. You should not even consider purchasing a property without instructing a lawyer and you should ignore any advice that suggests that there are alternative options available, such as using a “gestor” or, as I mentioned earlier in this book, assuming that the bank's lawyers will run checks for you. 

You should also ensure that the lawyer you use is independent of the agent or the builder that you are dealing with. While this might seem simple it is unfortunately something that people often get wrong. 

Over the next few pages I am going to describe the lawyer’s role in your property purchase, I will explain how and when you should start looking for a lawyer, the fundamentals that need to be checked when selecting a lawyer to represent you, how to ensure that they are truly independent and the steps you need to take when instructing them to act on your behalf. 

Finally I will explain the role of a “Power of Attorney”, what it entitles you lawyer to do in your name, the advantages of granting one and the risks that need to be mitigated if you do.

The Role of a Spanish Lawyer.

There are many tasks that your lawyer will need to conduct when buying a property.

Legal Due Diligence

• Conduct thorough due diligence on the property to ensure there are no outstanding debts, liens, or legal issues

• Verify the property's legal status, ownership, and any restrictions or encumbrances that may affect the purchase

Contract Review and Negotiation

• Review and explain the terms of the reservation and/or purchase contract

• Negotiate terms with the seller or their legal representatives to secure favourable conditions for the buyer

Title Search and Verification

• Perform a title search to confirm the property's ownership history

• Ensure that the seller has the legal right to sell the property

Documentation and Taxes

• Assist in preparing and obtaining necessary documentation for the purchase

• Advise on tax implications, including property transfer taxes, capital gains taxes, and other applicable taxes

• Provide guidance on funds required in advance of signing the deed

Representation and Completion

• Represent the buyer during negotiations, meetings, and legal proceedings

• Attend the notary appointment to ensure proper preparation of the property deed and mortgage deed (if applicable)

• Ensure that all accounts and taxes are properly settled and registrations are correctly entered at the land registry

Additional Services

• Arrange for the issuance of a foreigner's tax identification number (NIE)

• Provide escrow services to hold funds in trust until all conditions of the sale are met (or arrange payments from your own account using a power of attorney)

If you buy a property off-plan, they will have further due-diligence checks to make. 

Contract Review and Due Diligence

• Thoroughly review the off-plan purchase contract provided by the developer

• Ensure the contract includes all necessary details (property specifications, payment schedule, completion date, penalties for delays, and guarantees)

• Conduct due diligence on the developer

• Assess the developer's reputation, financial stability, track record, and any legal issues or complaints

Legal Compliance and Guarantees

• Ensure the developer complies with all legal requirements and regulations governing off-plan property sales in Spain

• Verify that the developer has obtained necessary permits and licences

• Confirm that the developer provides a bank guarantee or insurance policy to protect the buyer's payments

• Safeguard against the developer failing to complete the project or breaching the contract

• Verify that all necessary conditions have been met for the builder to be granted insurance to guarantee the building's structural integrity

Construction Progress and Payment Monitoring

• Monitor the progress of the project throughout the construction process

• Ensure the project is proceeding according to the agreed timeline and specifications

• Intervene in case of significant delays or deviations from the contract terms

• Advise on the proper handling of deposits and stage payments

• Ensure payments are made in accordance with the contract terms and are properly secured

Once the property is transferred to your name, then the lawyer will continue to work on your behalf, ensuring that utilities and other bills are transferred to your name and drawing up a will to be notarised. The lawyers office commonly deals with other aspects of your relocation and ongoing life in Spain including fiscal representation (we talked about this in chapter 5) and applications for visas and residency; however these are roles that can be carried out by other professionals and so I will deal with them separately, referencing when a role is also within the lawyer's scope. 

As you can see the lawyer’s role is varied and extensive and so picking the right lawyer to work with you is essential.