When purchasing a property in Spain, buyers expect the transfer to take place on the agreed date. However, delays in the transfer are not uncommon. What are the legal implications of such delays? Can a buyer terminate the contract? And what does Spanish case law say about it? In this article, we explain the situation in plain language.
Why is the transfer sometimes delayed?
When buying a property, a purchase contract is signed stating the date on which ownership will be transferred. In practice, various reasons can cause this deadline to be missed:
- The seller has not yet finished moving out;
- Important documents are missing, such as the first occupancy license;
- Construction or renovation work is still ongoing;
- Administrative delays at the notary’s office or the town hall.
What does the law say?
According to the Spanish Civil Code (Article 1124), a contract can be terminated if one party fails to fulfill their obligations. However, this does not mean that every delay in the transfer automatically leads to termination. Spanish courts pay close attention to the specific circumstances of each case.
When is the transfer date considered “essential”?
Judges look at whether the transfer date is described in the contract as “essential.” That is, is it clear to both parties that the date must absolutely be respected? If this is not explicitly stated, a judge is more likely to be lenient regarding a reasonable delay.
In a ruling by the Spanish Supreme Court (STS 220/2016), it was emphasized that simply including a transfer date in the contract does not automatically make it essential. Additional factors must be present.
When can a buyer terminate the contract?
You may legally terminate the contract if:
- The transfer date is explicitly described as essential in the contract and is not honored;
- The delay is so significant that it harms your interests;
- You have clearly and promptly indicated that you wish to terminate the contract.
However, as a buyer, you must also act in good faith. In the case STS 256/2019, a buyer who had already started using the property was denied the right to terminate the contract later on. The court found that he was abusing his rights.
What should you do in case of a delay?
- Communicate clearly with the seller and, if needed, the notary;
- Document everything in writing, such as by email or registered mail;
- Seek advice from a legal expert if you’re unsure of your rights;
- Try to reach a solution through negotiation before taking legal steps.
Conclusion
Spanish case law takes a nuanced approach to delays in property transfers. Not every delay gives the buyer an automatic right to terminate the contract. The specific circumstances, the conduct of both parties, and the exact wording of the contract all play a crucial role. Being well-prepared and legally advised is essential when purchasing property in Spain. This way, you can avoid unpleasant surprises and know exactly where you stand.
Ilonka Dekker