Is your Spanish property free of debt?
Or is there a mortgage or other claims on your spanish property. What happens when there is a mortgage on the house you want to buy? Is there a risk that you take over that claim?
No, not necessarily. First of all, if there is a mortgage on the spanish property of your choice, you might even be interested in taking over that mortgage, depending of course of the outstanding amount and conditions. If you prefer to buy the house without any mortgage, then the existing mortgage should be cancelled before you change ownership. In that way, you buy the house free of debts.
How to achieve that the property becomes free hold?
Cancelling the mortgage usually takes place on the same day as the change of ownership, so not before. The first deed will be a deed signed by the current owner (debtor) and the bank to cancel the mortgage, let´s say deed nº 103. The second deed, deed nº 104, will be the title deed signed by the current owner (vendor) and you (buyer). The moment you sign deed nº 104, the house is free of debts and will be registered as such in your name at the Land Registry.
Most of the times this is the only way the transaction can take place. Usually the seller does not have the money to cancel the mortgage and needs the income from the sales in order to do so.
Important! You should not sign the new title deed without the cancellation being signed.