You found a problem in the checks: what now?

Terms used

• Arras — Arras is a deposit paid under a signed contract before the deed; its legal effect depends on the type.
• Condición suspensiva — A condición suspensiva is a contract condition, such as mortgage approval, that lets you withdraw and recover your deposit if it fails.
• Saneamiento — Saneamiento is a claim against the seller for hidden defects found after the sale.
• IBI — The IBI is the yearly local property tax, paid by the property owner.

Key rules

• Before arras: You can renegotiate or walk away freely until you sign an arras contract or pay a reservation.
• Type of arras: Whether you lose your deposit depends on the type of arras and the contract wording.
• Who pays: By custom the seller pays to clear mortgages, embargos, debts and legalisation costs.
• Embargo or mortgage: Do not buy with an embargo or mortgage still on the property unless it is cleared at completion or enough of the price is held back to cover it.
• After the deed: Remedies after the deed are limited, so solve problems before you sign it.

Your options depend on where you are in the purchase

The stage you have reached decides what a bad result costs you.

• Before a reservation or arras contract: you can renegotiate or walk away freely. Finish your checks, ideally with a lawyer, before you pay anything.
• After arras, before the deed: your options depend on the type of arras and the wording of your contract.
• After the deed: you can only claim for hidden defects (saneamiento) or for breach. This is much harder, so treat the deed as the last point to fix things.

Check which type of arras you signed

Read the arras clause first. It decides whether you can leave, and at what price.

• Penitential arras: either side may withdraw. If you withdraw, you lose the deposit. If the seller withdraws, they return it doubled. You must withdraw before performance begins. If the wording is unclear, courts usually treat arras as penitential.
• Confirmatory arras: the deposit is part payment of the price. Neither side has a right to withdraw. Either side can demand that the sale is completed, or end the contract and claim damages.
• Penal arras: the deposit is a penalty for breach. The injured party can demand performance plus the penalty, or end the contract and claim damages. A court can reduce the penalty.

Choose your reaction

Ask the seller to fix it. This is the normal first step. The seller must deliver the property free of charges and as described. Mortgages, embargos, community debts, unpaid IBI and the cost of legalising works are normally the seller's to clear, and the contract usually says so. If the seller cannot deliver the property free of charges as promised, you can end the contract for breach.

Hold back part of the price. The usual way to make sure a debt is paid is to pay the lender directly from the price at completion, or to keep part of the price in escrow until the defect is cured. Do not buy with an embargo or mortgage still on the property unless it is cleared at completion or enough of the price is held back to cover it.

Renegotiate the price. This often works when legalising works is costly. Agree the new price and who pays for the cure in writing, before you sign the deed.

Withdraw using a condition in the contract. A condición suspensiva is a condition, such as mortgage approval or a planning certificate. If it fails, you can withdraw and get your deposit back. This only works if it is written into your contract.

Refuse to sign the deed. Before the deed, you can refuse to sign if the defect is not cured. The notary can note the situation. Refusing can still have consequences under your arras contract, so read it first.

Why unlicensed works are serious

Authorities can order demolition and fines against the current owner, even if you did not build the works. Fines go to the person responsible for the works, but an order to restore the property attaches to the property. The time limit for action varies by region, often 4 to 15 years, and does not run on protected land.

Banks often refuse a mortgage when works are not registered or the valuation leaves them out. Insurers can refuse cover or claims. Notaries and registrars require a licence or a certificate of antiquity to register works.

Debts that stay with the property

Community debts from the current and previous year stay with the property. Ask for a debt certificate before you sign.

The documents list and the red flags below show what to request and what should stop the purchase. The FAQ covers deposits, unlicensed works and debts.

Get a lawyer to read your contract before you choose. The outcome depends on its exact wording.

Choosing between options

A check failed: should you ask for a fix, renegotiate, or withdraw?

• Renegotiate or walk away freely: You have not yet signed arras or a reservation, so you can change terms or leave without penalty.

• Require the seller to fix it: You signed arras and the defect is one the seller must cure, such as a mortgage, community debts or legalising works. Ask for the cost to come out of the price at completion.

• Renegotiate the price: Fixing the problem is costly, such as legalising works, and you still want the home.

• Refuse to sign the deed: The defect is still not cured before the deed. Afterwards you can only claim for hidden defects or breach.

Before arras, leave or renegotiate freely. After arras, check the type: with penitential arras, withdrawing costs you the deposit, while a seller who cannot deliver the property free of charges is in breach and you can demand a fix or end the contract. Do not sign the deed until the defect is cured or enough of the price is held back.

Documents you need

• Cancellation certificates for any mortgage or embargo, which the seller must deliver under the contract

• A community debt certificate, because debts of the current and previous year stay with the property

• A licence or certificate of antiquity for any works that must be registered

• Your arras contract, to check the type of arras and any condición suspensiva (a condition such as mortgage approval that lets you withdraw and recover the deposit)

Red flags that should stop a Spanish property purchase

Red flags that should stop a purchase

• Works missing from the property register: An extension, pool or terrace that is not declared in the property register has no registry protection and cannot be sold with registry cover. If the time limit for planning action has not run out, unlicensed works can face a demolition order. They can also make a mortgage harder to get. Ask the seller to legalise the works before completion, or negotiate the price down. Get legal advice before paying a deposit.

• Embargo on the property: An embargo (a court attachment for a debt) stays on the property and binds you as the new owner. The creditor can still enforce it against the home, and you could lose it in an auction. Do not go ahead unless the embargo is cleared at completion or enough of the price is held back to cover it. The price can be paid straight to the creditor at the notary.

• Fuera de ordenación status: A home that is fuera de ordenación was built legally but no longer fits the current plan. Depending on the type, you may be limited to basic conservation works, with no enlargement. Banks may refuse a mortgage or lend less. Ask the town hall which type applies and what works are allowed before you commit.

• Home on Costas land: If a home sits on land that became public coastal domain, the owner has a concession of up to 75 years instead of ownership. You would take over the remaining term and pay the canon (the fee). Works are limited to repair and conservation, with no added volume, height or surface. Unlawfully built homes can be ordered demolished. Check the concession registration and the boundary survey status with the Demarcación de Costas, the coastal authority's local office.

• House on rustic land: On rustic land (suelo rústico), housing is generally banned unless it is tied to a farm. Free-standing homes and plot splits are often illegal, and unlicensed buildings can be fined or demolished. Ask the town hall for a planning certificate for the exact plot before you pay anything.

• Seller will not give documents or use a notary: Walk away or get legal advice if the seller is not the registered owner, refuses a nota simple, or has no licence of first occupation (licencia de primera ocupación or cédula de habitabilidad). The same goes for pressure to sign quickly, refusal to use a notary, or a request for large cash payments or payment to a third-party account. Do not pay a deposit until a lawyer has reviewed the position.

• No proof of utilities or other charges: Missing proof of legal water or electricity supply, or a property that differs from the Catastro record, signals a problem with the property. Ask the seller for proof of supply and for the Catastro record to be corrected before you sign.

Frequently asked questions

Can I get my deposit back if I withdraw after paying arras?

It depends on the type of arras in your contract. With penitential arras (the type that allows withdrawal), you lose the deposit if you pull out, and the seller returns it doubled if they pull out. Confirmatory arras give no withdrawal right, and if the wording is unclear, courts usually treat the arras as penitential.

Can I be fined or forced to demolish unlicensed works I did not build?

Yes, the order to restore the property attaches to the property, so the current owner can face demolition even if you did not build the works.

How can I make sure a debt is paid when I buy?

Ask for the debt to be paid from the price at completion. The notary or you can pay the lender directly to cancel the mortgage, or part of the price can be held in escrow until the defect is cured. Ask for cancellation certificates too.