What Happens When a Property Is Not Properly Registered in the Property Registry? The Need for the Deed of Declaration of New Construction
In Spanish real estate law, the Property Registry is a fundamental tool for ensuring the legal security of both property owners and buyers. However, in some cases, properties are not fully registered, which can lead to legal and financial issues.
The role of an expert real estate lawyer is to identify these risks during a purchase and offer legal solutions.
Why Isn’t a Property Registered in the Property Registry?
There are various reasons why a property may not be fully registered:
Failure to register new construction: When a property is newly built or renovated, it must be registered in the Property Registry. If this registration is not carried out, the property will not be correctly registered.
Unformalized modifications: Extensions or renovations that have not been properly documented can also cause problems with registration.
Registry errors: Sometimes, due to administrative errors or negligence, the property may not have been fully registered from the beginning.
Legal and Financial Consequences of Not Properly Registering the Property
The lack of proper registration can have various negative implications:
Legal uncertainty: Without adequate registration, the property’s rights are not fully protected, which could lead to problems during sales or legal disputes.
Difficulties obtaining financing: Banks and financial institutions require that a property be fully registered before approving a mortgage or loan.
Obstacles to sale: Incomplete registration may cause potential buyers to distrust the property, as the ownership and legal situation may not be fully guaranteed.
What is the Deed of Declaration of New Construction?
The Deed of Declaration of New Construction is a fundamental legal document when a property is not properly registered, especially after construction or significant renovations. This document is used to regularize the property’s registration and ensure that all legal and urban planning requirements are met.
Steps to Complete the Deed of Declaration of New Construction:
Final certificate of the construction: The architect or responsible technician must issue a final certificate confirming that the construction is completed according to the approved project and current urban planning regulations.
Drafting the public deed: The deed is drafted before a notary, describing the details of the work done or modifications made to the property.
Registration in the Property Registry: Once the deed is signed, it is submitted to the Property Registry for proper registration.
Why Is It Important to Regularize the Property with the Deed of Declaration of New Construction?
Regularizing a property through the Deed of Declaration of New Construction not only guarantees the legal security of the owner but also provides several benefits:
Updating the property’s status: Ensures that all modifications, extensions, or new constructions are reflected in the registry.
Avoiding future legal issues: When properly registered, the property will be protected from possible disputes or legal issues with third parties.
Facilitating the sale or transfer of the property: A properly registered property will make its sale or transfer easier, as buyers will have confidence that all legal aspects are in order.
Conclusion
Proper registration of a property in the Property Registry is crucial to ensure the legal security of the owner and facilitate future transactions. If your property is not adequately registered, the Deed of Declaration of New Construction is the necessary step to regularize the situation.
If you find yourself in this situation, we recommend seeking advice from a real estate lawyer who can guide you through the registration and regularization process for your property. Feel free to contact us to regularize your property in Seville.