"I purchased aa new build in the Canary Islands. After I had signed my title deeds at the notary, it turned out it was impossible to register the property because the developer had not paid the 10 year structural building guarantee, a compulsory insurance for new-build properties since 2000.

The developer was an Austrian who had disappeared and nobody knew anything about him.

Given this uncertainty, I contacted the Title Deeds Insurance company in Madrid and they dealt with everything from the first moment.

They advised my to pay the 10 year insurance myself (this way I would avoid being unprotected as a consequence of not being registered) after which they refunded me the total amount."

N. R. - Vencindario (Las Palmas)

As incredible as it might seem, the law in Spain states that debts are charged against properties, not their individual owners.

With so many foreign owners of property in Spain, it is easy to understand why this is the case as it would be very easy to sellers to accrue liabilities, sell their properties and return to their native countries leaving financial problems behind.

This is why Safe Purchase Lawyers and public notaries make it a fundamental part of the conveyancing procedure to check that the property you wish to purchase is clear of any financial liabilities. Your contract and title deeds will clearly state that the property is to be transferred to your name free of debts, charges and taxes.

Failure to make these checks can lead to the problem above. An innocent buyer parts with funds, signs at the notary but later finds that the Land Registry fails to recognise him as the new owner due to the existence of prior debts.

For the new owner, this means the seller's title remains and the new owner cannot raise finance against the property nor sell it.

The problem is two-fold as the vendor should assume the debt but in most cases will not; and secondly, the Land Registry will not recognise the new owner until the debt is paid.

In many cases, owners who have already paid so much to acquire the property are forced to assume the debt in order that the property is inscribed in their own names as soon as possible.

The possibility of long and costly legal disputes to make the vendor pay add further pressure to the new owner.