Special types of ownership

Most comun type ownership in Spain it is a free hold property.

Just on Marina areas (berth, comercial premisses and apartments) normally are lease properties.

On residential complex comunals areas are condominium Comunity of Property Owner) governed by Horizontal Property Act, The owner of an appartment must comply with the bye­laws and regulations of the condominium. He must pay his share  of the common expenses (annual budget).

The condominium appoints  a president to represent it.

CONVEYANCING

Land Owner Registry.

The aim  of spanish property registries is to provide information on the legal status of property. Property registries do not only record the ownershop of real state  but  also:

- encumbrances, mortgages, attachment .

- Inrem rights : easements , usuf ruct.

- Leases.

-Others circunstances relating to:

Property: conditional precedet

Owner: Limitation of capacity, bankrupcy

Mortgages, property transfer or encumbered are fully valid and enforceable once they  are registered in the property registry.

Requirements for the transfer of property.

The general rule is that no formal requirement is imposed by spanish law so oral (very unusual) or private writen agreements of sale are perfectly valid and enforceable although their existance can be difficult to prove;  however  the sale/transfer of property must be documented in a public deed to be eligible for registration in the property registry.

Typical transactional stages:

The sale of properties in Spain usually involves two stages:

I.- the parties willI sign a private agreement wich will contain all, or at least the esssential elements of the sale, there after,

II.- A notarial deed or a public deed of sale is usually executed before the notary public and filed with the property registry.

When signing the privete agreement normally the purchaser  will pay the seller a deposit towards the final purchase price with or without the posibility for the purchaser to back out of  the transaction, loosing the deposit.

Mortgages in Spain must be executed as a notarial deeds and to be valid and enforceable that notarial deeds must be recorded in the land registry owners.

LEASES

The URBAN LAW act in force on January 1995 distinguishing two types of leases:

1º).- Residential leases, when you are fulliy domicilied as your first residency.

2º).- Leases for others purposes, second residency, holidays, comercial…).