What Documents Are Essential in a Property Transaction?

Buying or selling a property is exciting, but behind every successful deal lies a mountain of paperwork. These documents may not be the most glamorous part of the process, but they are the foundation that keeps everything secure, legal, and transparent. Without them, no notary will authorize the sale, and both buyer and seller could face costly surprises later on.

So, which documents really matter, and why are they so important?

Proof of ownership and debts

The first step in any transaction is confirming who owns the property and whether it carries any debts. The title deed (Escritura) and the property registry extract (Nota Simple) provide this proof. For the buyer, it’s peace of mind that the home is being sold by the rightful owner and that there are no hidden mortgages or embargoes waiting to surface after the keys change hands.

Arras contract (Deposit)

In Spain, the Contrato de Arras is usually the first formal agreement. It sets the price, conditions, timelines, and — importantly — the deposit, which is normally 10% of the final sale price. This document gives both sides security: the buyer shows commitment, while the seller agrees to reserve the property. If one party pulls out, the law is clear: the buyer loses the deposit, or the seller must return double.

Clearing the mortgage

If the seller still has a mortgage, the bank issues a mortgage cancellation certificate (Certificado de Deuda Pendiente). This ensures the loan is cleared before the property changes hands. For buyers, it’s the guarantee that they won’t inherit someone else’s debt.

Certificates for living and efficiency

The most important certificate is the occupancy certificate (Cédula de Habitabilidad), which proves the property meets legal standards to be lived in. Without it, the buyer may not be able to register utilities or even use the property as a home. Alongside this, the energy efficiency certificate (Certificado Energético) is also required by law. It provides useful information on the property’s energy performance and future running costs, but while important, it is not as critical as the cédula when it comes to legally occupying the property.

Taxes and community fees

Property transactions are closely tied to taxes, and the paperwork must be in order: proof that the IBI municipal property tax is paid, settlement of the plusvalía (municipal capital gains tax), and — for non-resident sellers — the 3% retention that the notary withholds for Hacienda. If the property belongs to a community, the community of owners certificate confirms that the seller is up to date with fees, so no unexpected debts fall on the buyer.

The final step — Escritura de Compraventa

Everything comes together at the notary with the final deed of sale (Escritura de Compraventa). This is the official transfer of ownership, recording the price, payment method, and the handover of the property. Once signed and registered, the buyer is the new legal owner.

Every one of these documents has a purpose: proving ownership, clearing debts, ensuring transparency, handling taxes, and complying with the law. But knowing how to prepare and navigate them isn’t simple — and mistakes can be costly for both parties. This is where a good real estate agent makes all the difference. By checking that everything is in order, guiding buyers and sellers step by step, and making sure no detail is missed, an experienced agent will save you money, avoid costly errors, and give you peace of mind that the transaction is safe from start to finish.