"After I purchase my house, the Land Registry did not allow me to register as the new owner due to retrospective taxes owed by the previous owner. I was upset and immediately got in touch with the title insurance company.

They dealt with everything.

They spoke with the Notary and the Land Registry and they managed to get me registered as the owner in record time.

In addition to that, the former owner was finally made to assume the debt. They saved me a lot of time and money but, above all, they gave me reassurance because they know very well these matters.

On my own, I do not think I would have been able to solve it."

J. M. - Alicante

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.