Urban land sales and purchases

The process of buying and selling urban land can be somewhat complicated. Especially for those who do not have a concrete idea of the legal procedures involved in the purchase of land. To do so, you will need to be aware of a number of key issues that will facilitate the process of acquiring urban land.

By paying attention to cadastral, urban and registry aspects, you will be able to choose a plot of land with all the security and legal certainty that the case deserves. So, if you are thinking of buying land to build your dream home or business, here is everything you need to know about it.

6 aspects to take into account before buying and selling on urban land

Before finalizing the contract of sale on urban land, it is necessary for the prospective buyer to take into account a series of technical and legal aspects. First of all, it is necessary to make sure that it is indeed a building land.

It is necessary to inspect and analyze the cadastral and registry status of the land. As well as the infrastructure, budgets, administrative expenses and regulatory documentation of the contracting parties.

1. Registration aspect

Before managing a sale or purchase, it is necessary to consult the status or registry situation of the property or land. This is possible by means of a simple copy requested at your local land registry.

• Make sure you know the name of the owner of the land.
• Verify that the terrain is free of any doubts. It is important that there are no mortgage guarantees on the land or liens.
• It confirms the non-existence of any type of construction limitations on the plot.

In this way, it is verified that the property is free of encumbrances and is suitable for housing construction.

2. Cadastral aspect

Visit the land registry page to find out the location or surface of the land. Before any type of sale or purchase on urban land, it is also necessary to request the relevant cadastral certification. There you will verify aspects such as:

• Graphic description of the terrain.
• Land area and location.
• Ownership of the neighbors adjoining the parcel.

In this way, you will check that the data you are handling are accurate and that they coincide with the deeds of the property.

3. Urban planning aspects

The visit to the town hall is decisive to review the urban regulations surrounding the property to be acquired. Here you can find out about the type of land you wish to buy and whether it is suitable for building homes or businesses.

According to Spanish legislation, soils have different permitted uses. This way you will know if the land is urban, developable or not developable. Also, you must verify the state of payment of municipal taxes of the parcel.

4. Planning and buildability aspects

There are regulations to be followed in order to build on urban land. The ordinances establish the maximum occupancy rate of the land to be built on. In this way, the municipality, through certain norms, ensures that the design of the building does not interfere with aspects of the community. Ensure that planning instruments comply with current regulations.

5. Administrative expenses – Urban land sales and purchases

The acquisition of a plot of land also involves other types of expenses. In addition to the costs derived from the sale and purchase, you will have to add administrative expenses. In addition to the notarial costs of the purchase and sale document, land registry fees and other taxes.

6. Aspects of operation and representation as part of the process

For the purpose of the purchase and sale transaction, both parties (buyer and seller) must have a foreigner’s identity number (NIE). This is necessary for the registration of the deed in the land registry. In case the purchase is constituted under the figure of a legal entity, they must have the matrimonial economic regime.

Likewise, it is important to identify whether the parties are acting in their own name or on behalf of an attorney-in-fact with power of attorney. It is also necessary to have the sellers’ tax residency and military permit on hand in case the buyer is not a Spanish national.

For all these reasons, it is of utmost importance to visit qualified and suitable professionals to carry out the purchase and sale of urban land. In this way, you will get support in your process and guarantee total success in your purchase.