October 26, 2022

Why do we ask for so much documentation from our vendors?

When we work on a new listing to offer our potential buying clients, we ask the owner for a series of documents. Some of them ask us why we want so many papers before we even have a client interested in buying the property. Today we explain why and give you the list of documents we need to be able to do our job according to the law.

Decreto 218/2005 is a Spanish consumer protection law in Andalusia that entered into force on October 11, 2005. The decree refers to homes, not commercial properties or land, and covers properties for sale (both those of new construction as those of resale), as well as those for long-term rental.

The objective of the decree is to achieve greater transparency in the Andalusian real estate market through the provision of complete information to consumers so that they can make informed decisions. The intention was to formalize the necessary documentation to ensure that buyers would not be trapped in situations where the new owner could not sell or reform, for example, because the property was acquired without the proper and formal permits from the town hall.

Decreto 218 requires sellers to be transparent about property information, including documentation showing that it is legal and meets all the construction regulations. The information must be provided to the agents offering the property for sale.

The documentation includes:

First occupation license (Licencia de Primera Ocupación)

It is issued upon completion of construction and certifies that the property was built in accordance with the planning permissions granted by the City Council, and other regulations in force at the time of construction.

Nota simple

This is a document that shows the property and associated mortgages. This is not the same as the deeds, but is a summary of the deed, which states the owners, cadastre reference number (property registration number), location, size of the property, any mortgage, among other considerations.

Energy Efficiency Certificate (CEE)

This is a certificate that demonstrates the energy efficiency of the property so that the buyer is aware of energy costs. This requirement was established in Royal Decree 235/2013 of April 5, 2013.

IBI

IBI is a local annual tax that is paid to the Town Hall for its services. Proof of payment for the current year must be presented.

Rubbish (basura)

The payment of the garbage collection to the City Council for the current year must be demonstrated.

Community fees

Cost of community fees including any surcharge.

The real estate agency is responsible for obtaining, maintaining, and making available to potential buyers all the aforementioned data. This means that agents must obtain complete information from the owner before listing the property for sale in the office, website, or other third-party portals. Since buyers have the right to request this information from the selling agent before, during or after viewing the property. Buyers do not have to make an offer, or show an interest in making an offer, to have the right to examine these documents.

Decreto 218 does not apply to private purchases, that means that if you buy a property directly from the owner, it does not apply.

Read our Guide to sellers