Did you know that when buying or selling a property in Spain, it’s important to ensure that the cadastral measurements match the Registro measurements? Let me explain the differences between these two entities.
The cadastre is a division of the Ministry of Finance that keeps track of real estate and properties located in Spain. Their purpose is to regulate taxes like the Real Estate Tax, the Inheritance and Donations Tax, and the Property Transfer Tax. On the other hand, the registry is an entity attached to the Ministry of Justice that confirms the ownership of all registered property in Spain.
The main difference between these two entities is that a property register indicates ownership of a house or Cortijo. It’s essential to note that if both sets of data do not match, you should go to the cadastre and request correction of all this data, providing evidence such as the title deed or specific plan of the house.
A discrepancy between the cadastral measurements and the Registro measurements can have significant financial and legal implications. For instance, if the Cadastro measurements are smaller than the Registro measurements, the seller may end up paying less tax for the property than they should have done and this can result in fines and charges that can be back-dated. On the other hand, if the Registro measurements are smaller than the cadastral measurements, it may be difficult to obtain a mortgage or sell the property in the future.
The discrepancy allowed between the Property Registry and the Cadastre is 10%. If it’s more than that, it will be necessary to open a file called “Expidiente de domino “ or a domain file, which is a procedure of voluntary jurisdiction processed before a Notary and the Registrar. It creates a valid and effective title deed that serves to register ownership of a property in the Property Registry with a corrected description of the property.
Sadly in the past, many lawyers didn’t bother to check this , or to make their clients aware of the future problems that it could raise, whereas today this is something that every good lawyer will check! This is why it’s essential to work with an experienced agent who can check the measurements and ensure that they match. They can advise their clients on what steps to take if there is a discrepancy between the measurements. With the right guidance, buyers and sellers can avoid these problems and enjoy a successful transaction.
In conclusion, ensure that the cadastral measurements match the Registro measurements when buying or selling a property in Spain. It’s essential to work with an agent who can help ensure that everything is in order. With their guidance, buyers, and sellers can avoid these problems and enjoy a successful transaction.
As a professionally registered agent, we always check this for you before marketing your property and will be able to advise you of the correct procedure if there is an error. It is vital to check this prior to marketing as the timescales needed to rectify issues can be long. Therefore if you are thinking of selling in the next few years, just get in touch now.
To read more the first part of this series, just click here
To see videos about buying and selling safely in Spain , just click here