When buying a home, it is common to get lost among so much terminology, procedures, and taxes. One of the biggest headaches for buyers is understanding exactly who pays the notary, the Land Registry (Registro de la Propiedad), and the administrative agency (gestoría). Lack of knowledge can lead you to cover bills that, by law or custom, correspond to the selling party or the financial institution.
To avoid this, it is essential to distinguish between two different transactions that are usually signed on the same day but are governed by independent rules:
- The deed of sale of the property.
- The mortgage loan deed (if you need financing).
Below, we analyze in detail how these costs are distributed in a real estate transaction, paying special attention to the particularities of Catalonia.
Who pays notary fees in a sale in Catalonia?
Unlike what happens under the common regime of the state Código Civil (Civil Code), Catalonia has its own regulation. Article 531-6 of the Código Civil de Cataluña (Civil Code of Catalonia) establishes that, unless otherwise agreed:
- The expenses of executing the public deed and its first copy correspond to the acquirer (buyer).
- The expenses of delivering the property correspond to the transferor (seller).
- The expenses subsequent to the transfer are also borne by the buyer.
Therefore, if you are going to buy a flat in Barcelona or any other Catalan town, you should know that the notary expenses of the sale correspond to the buyer, unless you agree otherwise with the seller when regulating the expenses in the earnest money contract.
How much does the deed of sale cost?
Notary fees are not set freely; they are subject to a tariff regulated by law. However, there is no fixed cost. The final amount will depend on variables such as the sale price of the home, the number of pages in the document, the existence of annexes (such as parking spaces or storage rooms), the number of copies requested, and whether additional actions are required.
Who can choose the notary?
If you are the buyer and assume the cost, you have the right to freely choose the notary before whom the deed of sale will be signed. This freedom of choice is protected by consumer regulations, so you are not obliged to sign at the notary's office proposed by the real estate agency or the seller.
Who pays the Land Registry fees in the sale?
Once the deed is signed, the next essential step is to register the acquisition so that it appears in the name of the new owner. According to the rules of the deed of sale expenses in Catalonia, the registration of the sale in the Land Registry is considered an expense subsequent to the transfer and, therefore, is fully assumed by the buyer.
In this way, the buyer must pay the bill from the Land Registry. As is the case with notaries, registrars apply tariffs regulated by the State that vary based on the value of the property and the technical characteristics of the registry document.
Is it mandatory to register the sale?
Although from a strictly civil law point of view registration is not mandatory to perfect the transfer of a property, the Colegio de Registradores (Association of Registrars) emphasizes that it is vital to legally protect the buyer against claims, foreclosures, or fraudulent sales by the former owner. Furthermore, if you finance the acquisition with a loan, registration is mandatory in order to set up the mortgage.
Who pays the agency fees (gestoría) for the sale if there is no mortgage?
The gestoría (administrative agency) is responsible for handling the paperwork after the signing: collecting the deed from the notary, settling the taxes paid by the buyer, and submitting the document to the Property Registry (Registro de la Propiedad).
If you carry out the sale without bank financing, hiring a gestoría is entirely optional. The buyer themselves can handle these procedures personally or ask the notary's office to perform the basic steps.
If you voluntarily decide to hire a gestoría, the corresponding fees will be paid by whoever requested the service (usually the buyer). There is no law requiring you to use the agency proposed by the developer or the real estate agency.
The split with a mortgage: Which expenses correspond to the bank?
When a mortgage loan comes into play, the balance of expenses shifts radically in favor of the client. Following the entry into force of the Ley 5/2019 reguladora de los contratos de crédito inmobiliario (Law 5/2019 regulating real estate credit contracts), the distribution of loan expenses is strictly defined:
- The bank assumes: the fees of the loan's gestoría, the notary fees for the mortgage deed, the Registry fees corresponding to the registration of the mortgage, and the Impuesto de Actos Jurídicos Documentados (AJD, Stamp Duty) on the collateral.
- The buyer (borrower) assumes: the cost of the official property appraisal (necessary to grant the loan) and the copies of the deed voluntarily requested for themselves.
The Banco de España (Bank of Spain) insists that these rules should not be confused: the bank assumes the costs of formalizing the mortgage, but is in no way obliged to assume the costs of the sale of the apartment.
Practical example of expense distribution
Imagine that you buy an apartment in Barcelona for a price of €500,000 and request a mortgage loan of €350,000:
- For the sale: You, as the buyer, will pay the notary fees for the purchase deed, the registration fees at the Property Registry (Registro de la Propiedad), and the corresponding taxes (ITP or IVA/AJD depending on whether it is a new build or second-hand). To calculate the overall amount of the transaction, we recommend you calculate all purchase costs.
- For the mortgage: The banking institution will pay for the loan's notary, the Registry of the mortgage, and the mortgage gestoría. You will only have to pay for the property appraisal.
If the bank's same gestoría handles both the sale and the mortgage, you must demand a clear breakdown specifying which part of their fees corresponds to each procedure, making sure you are not charged for the mortgage processing costs.
Cancellation of the seller's mortgage: Who has to pay?
Before purchasing a property, it is essential to check if there is a mortgage that must be cancelled. If the seller has an active mortgage on the property, it must be fully paid off and cancelled in the Land Registry (Registro de la Propiedad) before or at the very moment of signing to guarantee that you receive the property free of charges.
The financial settlement of the debt and the processing of the registration cancellation (which includes the notary deed of cancellation and its registration) are the sole responsibility of the seller. These notary, registry, and agency (gestoría) costs derived from the cancellation of their old debt must never be passed on to the buyer.
Common mistakes when calculating expenses
- Assuming the general state regime in Catalonia: Remember that in the rest of Spain, standard practice under the common Civil Code (Código Civil) usually distributes notary fees differently, but in Catalonia, Article 531-6 of the CCCat (Civil Code of Catalonia) assigns them by default to the buyer.
- Signing deposit agreements (arras) with ambiguous clauses: Generic expressions such as "all expenses shall be borne by the purchasing party" can obligate you to assume the cancellation of the seller's prior mortgage or previous community fees. Before signing anything, it is vital to review the sale agreement before signing.
- Not demanding the settlement of the provision of funds: Agencies (gestorías) usually request an advance payment. At the end of the process, they must provide you with a transparent breakdown along with the original invoices from the notary and the Land Registry to return any remaining balance to you.
Frequently Asked Questions (FAQ)
Who pays the notary when buying an apartment in Catalonia?
Unless agreed otherwise in the deposit agreement (arras), the buyer assumes the full cost of executing the public deed of sale and its first copy.
Is an agency (gestoría) mandatory in a purchase without a mortgage?
No, it is not mandatory. You can choose to file the taxes yourself and submit the deed to the Land Registry, or you can hire these services for your convenience.
Which mortgage expenses must the bank customer pay?
In accordance with current legislation, the customer is only required to pay the cost of the property appraisal and any copies of the loan deed that they voluntarily request.
Conclusion
Accurately determining who pays the notary, the Land Registry, and the agency (gestoría) will save you from last-minute surprises and allow you to optimize your purchasing budget. In Catalonia, the general rule attributes the sale invoices to the acquirer (buyer), while the bank must take care of the invoices corresponding to the formalization of the mortgage. Any prior charges on the property, such as the seller's mortgage, are always the responsibility of the latter.
At INMODOCS, we carry out a detailed analysis of the property's charges, the status of the deposit agreement (arras), and the budget of expenses for your transaction to guarantee that you only pay what legally corresponds to you.
Before signing the deposit
If you are considering buying in Barcelona, read the full guide: Buying a flat in Barcelona without surprises.