Encumbrances (cargas in Spanish) on a property are limitations or obligations that restrict its value or use. You can check them by requesting an extract (nota simpleThe nota simple is a document issued by the Land Registry (Registro de la Propiedad) that provides a summary of key information about a property, including the current owner, any charges or debts, and... More) from the Land RegistryThe Catastro is a public registry that records all real estate properties in Spain (homes, commercial premises, plots, etc.). It contains detailed information about each property, including the cadast... More (Registro de la Propiedad), and it’s essential to review any encumbrances before purchasing a property, as these are often inherited by the buyer. Some of the most common encumbrances include:
- Mortgage (HipotecaFixed, variable, and mixed-rate mortgages are the three main types of mortgage available in Spain, and they differ based on how interest is calculated in each case. Fixed-rate mortgages apply a single... More): While the mortgage is active, the bank holds rights over the property until it is fully paid off and cancelled.
- Seizures (Embargos): The property is held due to debts (to the bank, tax authorities, etc.). It cannot be sold or gifted until the debt is cleared.
- Easements (Servidumbres): Obligations the property has for the benefit of another property (for example, allowing access to a neighbouring plot).
- UsufructAn usufruct is a right granted to a person (called the usufructuary or usufructuario in Spanish) to live in and benefit from a property that belongs to another person (the “bare owner”). The most comm... More (UsufructoAn usufruct is a right granted to a person (called the usufructuary or usufructuario in Spanish) to live in and benefit from a property that belongs to another person (the “bare owner”). The most comm... More): Rights allowing certain people to live in the property without owning it (for example, a widowed person may have lifelong usufructAn usufruct is a right granted to a person (called the usufructuary or usufructuario in Spanish) to live in and benefit from a property that belongs to another person (the “bare owner”). The most comm... More over their spouse’s property, even if ownership passes to the children).
- Lease rights (Derechos de arrendamiento): If a rented property is sold and the lease is registered in the Land RegistryThe Catastro is a public registry that records all real estate properties in Spain (homes, commercial premises, plots, etc.). It contains detailed information about each property, including the cadast... More, the new owner must honour the lease agreement.
- Resolutory conditions (Condiciones resolutorias): Conditions that can nullify a sale if not met, such as failing to pay an agreed deferred amount.
- Community or planning charges (Cargas urbanísticas o de comunidad): Debts owed to the homeowners’ association or unpaid special contributions imposed by the local council.
- Leasehold (Censo): A relatively rare encumbrance, some Spanish properties have leasehold obligations, in which the property owner (the censatario) must pay a periodic fee (canon) to another person (the censualista), who holds rights over the property. This is similar to a perpetual ground rent, which the owner must pay despite owning the property. While rare, it is mostly found in rural estates, especially in regions like Catalonia, Navarra, or the Basque Country.
