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Buying an old rural property like a plot, finca or granja, might be very complicated and also quite risky and many problems might turn up unless a proper investigation about all sides of the possible purchase has been conducted on beforehand. Always use a lawyer to check out the real ownership, if there is an escritura and other documents.
Often there are no escrituras (Title Deeds) for these kind of properties. It is possible to apply for a new escritura in your name and you will receive that from the notary when you are paying in full the vendors price, but it all takes time.
If you are going to apply for a mortgage, the banks will not sign up with you before you have the escritura. Many banks also have a policy where they say the escritura must be at least two years old before they say yes to a mortgage, this because they will see if there are any risks involved, like e.g. members of the family or a neighbour will claim back the property.
The vendor also have to notify the owners of land adjacent to the boundaries of the plot, because they have preference to buy over you. A time limit is set and if none of the neighbours are interested and have not affirmed they will purchase the property, then you are free to buy the land legally.
Another thing that might go wrong, is the declaration of the real price for the property. Like it often is practiced in Spain, the vendor wants some of the purchase price in cash so the price in the escritura is lower than the real purchase price.
If the neighbours then find out about the purchase price in the escritura and at the same time they have not been notified in due time from the vendor, they may go to the notary and claim ownership to the property for the same price that is stated in the escritura.
That means you will lose the property to this neighbour and also lose the cash amount you have paid to the vendor, but you will have your deposit paid back.
Illegal new constructions on rural land are not uncommon in Spain, so watch out! Many of these properties look very nice and they have big plots. But the law says the legal plots on rural land should be at least 10.000m2, then it is allowed to build if all the other licenses and documents are in place. So, be careful and always use a lawyer when buying a property in Spain, whether it is on rural land or other places.
In Procon we are not involved in purchase of rural properties, usually. This because of all the problems that might occur and we do not want our clients to be involved in transactions with this kind of risks and problems.
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