Spanish Title Deed Insurance may assist in the following:

  • Document fraud / forgery

Current technology makes it easy to forge all types of documents such as National Identification Cards, Deeds and Powers of Attorney. A fraudster could use these documents to fake your identity and apply for a mortgage loan or sell your house to a third party for a derisory price and take off with the funds. There are stories in the press regularly about well organized groups of forgers and cases where the Spanish Supreme Court has ruled in favour of a third party purchasing property in good faith. You could lose your property.

  • Identity fraud

You discover that the person from whom you bought your property was not the real owner and was acting with forged or revoked powers. The person from whom you bought your property has sold it without spousal consent and that threatens your title to the property.

  • No habitation licence – Cedula de habitabilidad

Your property may have been built illegally by the construction company with defective building licences or  no building licences, which lead to a refusal to grant  the Cedula de Habitabilidad or occupation certificate.

  • Compulsory purchase

You discover your house is subject to a compulsory purchase order or proceedings which predated your purchase.

  • Revocation or abuse of building licences

Imagine that after several years, a Demolition Order is placed on your house because it is shown that the building license by virtue of which it was built, is illegal because it infringed land classification (Urban Planning Scheme) at the time of purchase, or simply because your house was built without a license or in breach of the terms of the building license.

  • Boundary disputes

Even when some time has gone by, there are numerous cases in which it is discovered that part of a property does not belong to the person who has bought it. For example: a terrace turns out to be common property, which has been fraudulently added to the plot by the previous owners.

  • Unknown heirs

Property owners or unknown heirs from the past appear to claim their property.

  • Coastal Law enforcement

Parts of the Spanish coastline are protected by the ‘La Ley de Costas’ or Coastal Law. Changes to the classification of land near the sea have removed the rights of owners to sell or bequeath their properties. How would you know if your property had an existing administrative claim against it?

  • Administrative ommissions / errors

You may find a mistake or discrepancy in the title deeds that makes it impossible or difficult to sell your property, or that limits your rights of ownership or enjoyment. If the property is bought ‘off plan’ and following physical completion it is found to be more than 10% smaller than for what it was contracted. You discover your house is subject to a ruin or eviction order from your date of purchase.

  • Undisclosed leases

You have bought a house that has, previous to your purchase, been leased to a third party. The lease is valid until it expires, regardless of who holds title to the property.

  • Access disputes / problems

During the 20 year policy term, a right of way or unregistered charge in favour of a third party is discovered that affects the property. If for any reason there are insufficient legal rights of access to and from your property or any part of it you will be covered. Similarly, the seller may not vacate the premises on completion.

  • Bankruptcy of vendor

A judge rules that your property is subject to the previous owner’s bankruptcy (preferential rights of the creditors).

  • Community disputes

You discover you have been paying too much in community fees because at the time of purchase the property was assigned the wrong coefficient. Or for example, there is an attempt to make you pay an incorrect quota or unsettled community expenses and taxes for a period prior to your purchase. Over the course of the 20 years, you may discover agreements passed by the Community of Property Owners prior to your ownership that could limit your rights over the property.

  • Incompetent vendor

You discover that the person from whom you bought the property lacked the necessary legal capacity to sell.

  • Administrative financial / legal claims

During the policy term, a third party makes a claim for part of your property through the courts.

  • Land registry problems

The Land Registrar finds a defect in your title deeds and will not register you as the owner.