The registration of a home in the Land Registry is not mandatory. However, this procedure, which is regulated by several regulations (among them, the Mortgage Law or the Data Protection Law), is highly recommended to carry out, since it is a procedure whose cost does not usually exceed 300 euros and represents a good number of advantages for the owners of a real estate. What could happen to the owner of a property if he does not carry out this procedure?
Loss of legal certainty
The main function of the Property Registry is to give public registration, which belong to who appears as the owner and that the content is it's exact and complete. A guarantee that provides legal security to registered rights which, in turn, favours agility of legal traffic and saves transaction costs.
In this way, the legal security with which the registration of a home in the Land Registry provides the owner of the property consists in knowing what I buy, who I buy and what are the burdens that weigh on what I buy. However, we must always require the seller to prove that he is up to date with the payment of community fees through the corresponding certification.
Difficult the process of transmission of the property
The transfer of a property becomes more complex if it is not registered. This is due to the fact that the owner lacks legal certainty, which is why he must adopt more precautions so as not to see his expectations disappointed. In this sense, the most delicate aspect in the transmission of an unregistered property is to effectively prove ownership of the property by the person who intends to sell it and claims to be the owner.
Thus, it should be noted that the potential buyer of the property must have proof of the authenticity and legality of the documents presented by the person who is credited as the owner of the property to avoid unpleasant surprises, such as scams or any other type of fraud. Likewise, this lawyer indicates that if a farm is not registered, it will be difficult to verify the absence of charges from the buyer's legacy, adding the risk of having to assume them as the current owner at the time the potential creditor claims them.
Increase in registration costs
In addition, once the purchase of a property is made, the registration process becomes much more complex and expensive if the property is not registered in the Property Registry. In fact, it ensures that the cost of this procedure is doubled, since it has to deal with the notary services and the corresponding property transfer taxes of two homes, the current one that is to be registered and the previous one, which was not stated in the registry.
Specifically, this lawyer adds that the successive tract must be complied with, which is that in order to register or write titles, the right of the person granting it must be previously registered or noted. Thus, he regrets that in the case of being registered that right in favour of a person other than the one who grants the transfer or lien, the registrars will deny the requested registration.
Inability to access a mortgage loan
According to article 1.875 of the Civil Code, in order for a mortgage to be validly constituted, its deed must be registered in the Property Registry. In this sense, if the property to be mortgaged is not registered, it cannot be validly constituted a mortgage on it. One reason why if the presumed owner goes to the bank to apply for a mortgage loan offering as guarantee a property that is not registered in the Property Registry, we can be sure that it will not be granted.
This is due to the fact that the real mortgage right can only be granted by the owner, as it is configured as the guarantee given to the creditor in the event that it fails to fulfil its obligation of the owner. And in order to know who the owner is, you have to be registered in the Property Registry.
Inability to access a mortgage loan
According to article 1.875 of the Civil Code, in order for a mortgage to be validly constituted, its deed must be registered in the Property Registry. In this sense, if the property to be mortgaged is not registered, it cannot be validly constituted a mortgage on it. One reason why if the presumed owner goes to the bank to apply for a mortgage loan offering as guarantee a property that is not registered in the Property Registry, we can be sure that it will not be granted.
This is due to the fact that the real mortgage right can only be granted by the owner, as it is configured as the guarantee given to the creditor in the event that it fails to comply with its owner's obligation. And in order to know who the owner is, you have to be registered in the Property Registry.
Lack of publicity of housing charges
The Property Registry makes public the facts, acts and rights registered for those who have a legitimate interest in knowing them. This provision of advertising allows checking if the house is free of charges and encumbrances. Among them, the possibility that a property is taxed by a mortgage, an entry of seizure by a public body or any other type of charges, such as easements or usufructs. That is why this lawyer adds that, if at any time the property is put up for sale, the buyer will know what charges are registered to force the seller to cancel them beforehand so that the farm is transmitted free of charge.
Hidden costs
The offer of homes that lack registration in the Property Registry usually occurs at a value below the average of the properties offered for sale in a certain area. This price reduction is a consequence of the uncertainty generated by its lack of registration. However, many times these homes are less economical since there is a cost that is not seen, which is the result of the payment of notarial procedures, subsequent registration and even a judicial procedure. Hence, this lawyer does not recommend acquiring an unregistered home assuming the costs and procedures, In any case, if the price is attractive, the expenses are assumed by the seller.
The case of homes never registered
A particular problem is that derived from homes that have never been registered since the absence of this procedure on such properties implies both the loss of security given by the registration and an increase in the expenses derived from the registration process. For this, explains the Legal Management 21 lawyer, the procedure of article 199 of the Mortgage Law must be followed, which says that the registration will be carried out by means of a domain file and by the public title of its acquisition, complemented by a certificate of notoriety before a notary.
Along the same lines, this expert criticizes the generalized belief of society around never-registered homes and the non-obligation of them paying the corresponding Real Estate Tax. In fact, it warns that there is no counterpart in this case unless you want to risk a penalty for breach of tax obligations.
My property built 6 years ago was not registered by the builder.
Advice please on how I register it.