Bureaucratic issues you may face when selling a property.
Case 1: Property not registered with the land registry
Let’s look at a common example. In 1980, Richard bought a property and completed the purchase before a Notary Public, but he never registered the property with the Land Registry—either to save a few thousand euros in taxes or simply because he didn’t realise it was necessary. It’s worth remembering that registering a property with the Land Registry is not mandatory.
The risks of not registering your property
- Loss of legal protection: the main purpose of the Land Registry is to provide official legal certainty that the registered ownership rights genuinely belong to the person listed as the owner and that the registered information is accurate.
- Difficulties when selling: because you cannot publicly prove who the legal owner is.
- Unable to obtain a mortgage: as lenders generally require the property to be registered with the Land Registry before accepting it as collateral.
2023: Richard wants to sell but isn’t sure whether the property was ever registered.
He asks La Caseta Blanca to manage the sale. From day one, we request all the necessary documentation: the title deed, Certificate of Occupancy, Energy Performance Certificate, and a Land Registry search (Nota Simple). That’s when the problem becomes clear—the Land Registry confirms that no property is registered in Richard’s name. We explain that he must first complete the registration process, which may take anywhere from one month to longer, depending on the Land Registry office.
What does he need to do now?
- Request an authorised copy of the title deed from the Notary.
- Pay the Stamp Duty (AJD) and Property Transfer Tax (ITP), where applicable.
- Pay the municipal capital gains tax (Plusvalía Municipal), if required.
- Submit all the documentation to the Land Registry for registration.
Bureau problem identified—and solved.