Charges, liens and inherited mortgages: how to check before you buy

A property can look impeccable from the outside and carry a trail of debts within. Outstanding mortgages, court-ordered liens, community fee arrears: these are charges invisible during viewings but passed on to the buyer if not detected in time. Knowing how to verify them is just as important as measuring the square metres.

What property charges are

In legal terms, a charge (carga) is any financial obligation or legal restriction attached to a property. Charges follow the property, not the person: if you buy a home with a registered mortgage, that mortgage affects you as the new owner even though you did not take it out.

This is why verifying charges is a mandatory step before signing the arras. Asking the seller is not enough — you need official documents confirming the true state of the property.

The most common types of charges

Active mortgage

This is the most frequent charge. Most sellers have an active mortgage that is cancelled with part of the sale price on the day of the deed. This is perfectly normal and the notary manages the process so that the buyer's money goes first to the bank (debt settlement) and the remainder to the seller.

The risk arises when the outstanding mortgage exceeds the sale price, or when the seller fails to disclose the mortgage's existence. The nota simple from the Land Registry always reveals the registered mortgage, including the original amount, the lending institution and the date it was constituted.

Court-ordered lien (embargo)

A lien is a precautionary measure ordered by a court to guarantee collection of a debt. If the property has a registered lien, it means a creditor has filed a legal claim and the court has attached the property as security.

The anotación preventiva de embargo appears on the nota simple and is a serious red flag. A property under lien can legally be sold, but the lien does not disappear with the sale: if the judicial process advances, the property could be auctioned and the new owner would lose it. Buying a property with an active lien without specialist legal advice is a risk not worth taking.

There are two main types: judicial liens, arising from civil proceedings over private debts, and administrative liens, imposed by the Tax Agency or Social Security for unpaid fiscal obligations.

Community of owners debts

Community fee debts do not always appear on the nota simple, but they still affect the buyer. Under the Horizontal Property Act, the new owner is liable for unpaid fees from the current year and the three preceding years.

To verify this, the seller must provide a certificate from the building administrator confirming that all payments are up to date. This certificate is legally required for the deed and the notary will demand it before signing.

IBI and utility debts

Unpaid local property tax (IBI) generates a fiscal charge that may appear on the nota simple. Although the debt is personal to the seller, the tax authorities can pursue the property to collect it. Ask the seller for IBI receipts from the last four years to confirm everything is paid.

Utility debts (water, electricity, gas) do not appear in the Registry but can cause problems when transferring contracts to your name. Ask the seller for the latest bills or a certification of no outstanding debts with the utility companies.

Easements and planning charges

An easement (servidumbre) is a right a third party holds over your property: a right of way, of light, of views or of drainage. Registered easements appear on the nota simple and are permanent — they do not expire with the sale.

Planning restrictions (afecciones urbanísticas) are limitations imposed by the municipal development plan: building lines, setbacks or mandatory land cessions that restrict what you can do with the property. These do not always appear on the nota simple; to check them you must consult the planning department of the relevant town hall.

Resolutory conditions

Previous transfers may include clauses that, if breached, allow the original seller to reclaim the property. This is common in sales with deferred payment: if the buyer stops paying, the seller can void the transaction. These conditions appear on the nota simple and must be cancelled before your purchase.

How to verify charges step by step

A complete verification requires three enquiries:

• Nota simple from the Land Registry: reveals mortgages, liens, easements, fiscal charges and resolutory conditions. Request it online from the official Registrars portal for 9.02 euros (plus VAT).
• Community of owners certificate: confirms the seller is up to date with fees. Issued by the building administrator and legally required for the deed.
• IBI receipts: the last four fiscal years. Provided by the seller.

If you have doubts about any entry on the nota simple, consult a lawyer before signing the arras. The cost of a consultation is negligible compared with the risk of inheriting a debt.

What to do if the property has charges

Having charges does not necessarily mean a property cannot be bought. What matters is understanding what type of charge it is and how to resolve it:

• Active mortgage: the standard solution is simultaneous cancellation at the deed. The notary ensures part of the price goes to the bank to settle the debt and the bank issues a zero-debt certificate. Registry cancellation is processed afterwards.
• Lien: if the seller can settle the debt that caused the lien before signing, the court is asked to lift the lien and the annotation is cancelled at the Registry. If not, the transaction is risky and requires legal advice.
• Community debts: the usual approach is to withhold from the sale price an amount equal to the outstanding debt, or to require the seller to settle it before signing with an updated certificate as proof.
• Resolutory conditions: these must be cancelled at the Registry before the deed, either because the condition has been fulfilled (full payment) or because it has prescribed.

The special case of inherited properties

Inherited properties require extra attention. It is common to find properties still registered in the deceased's name because the heirs have not yet registered their acceptance of inheritance. This does not prevent the sale, but the heir must register their title before the deed — a process that can take weeks.

Furthermore, inheritances can carry the deceased's debts: mortgages, fiscal liens or unpaid community fees. If the heir accepted the inheritance with benefit of inventory (a beneficio de inventario), their liability is limited to the value of the inherited assets. If they accepted it unconditionally, they are liable with their entire estate.

Before buying an inherited property, verify that the deed of acceptance of inheritance is registered and that all the deceased's debts have been settled.

Frequently asked questions

Does the nota simple show all debts on a property?

No. The nota simple reflects charges registered at the Land Registry (mortgages, liens, easements), but it does not capture community fee debts, unannotated IBI arrears, utility debts or unregistered planning restrictions. That is why it must be complemented with the community certificate, IBI receipts and, if in doubt, a planning enquiry.

Can I buy a property with a mortgage?

Yes, it is the most common scenario. The mortgage is cancelled on the day of the deed with part of the money paid by the buyer. The notary manages the process and the bank issues a zero-debt certificate. The key is that the mortgage balance does not exceed the sale price, because otherwise the seller would need to cover the shortfall.

What happens if I buy and a lien appears later?

If the lien was registered before your purchase and you did not detect it, the property remains affected: you could lose it at a judicial auction. If the lien is registered after your purchase, your right as a registered owner takes priority over subsequent liens. This underlines the importance of requesting an up-to-date nota simple just before signing.

Who pays for the mortgage cancellation at the Registry?

By custom, the seller bears the costs of cancelling their own mortgage: the zero-debt certificate from the bank, the cancellation deed before the notary and the cancellation entry at the Registry. These costs typically total between 500 and 1 000 euros.

Can I take over the seller's mortgage instead of cancelling it?

It is possible if the bank agrees. Subrogation means the buyer assumes the existing mortgage on the same (or renegotiated) terms. It can be advantageous if the original interest rate is lower than current market rates, but it requires the lender's approval and a creditworthiness assessment of the buyer.