Start early: how administrative timelines can disrupt your property transaction

There is a risk in property transactions that is often underestimated: time. Not the price, not the taxes, not the small print. Time. A licence that is delayed, a certificate that does not arrive, a Land Registry note that takes longer than expected… and suddenly a deal that seemed closed may be put at risk.

I see this above all with foreign clients, who may be unfamiliar with how long Spanish procedures take. The good news is that this risk can be managed. And the key is a single word: anticipation.

Administrative timelines: the risk you cannot see

When you buy or sell a property, the transaction does not depend solely on you and the other party. It also depends on public bodies that have their own schedules: the town hall, the Land Registry, the Catastro (Property Cadastre), sometimes the tax authority. And those schedules do not always fit with the urgency of a buyer who wants to sign.

The law tries to bring order to this. Ley 39/2015, which governs how public bodies act, requires them to resolve matters and respond within a set timeframe. As a general rule, that maximum period cannot exceed six months, unless a specific law provides otherwise; and if no period is laid down, it is three months. The problem is that 'having a deadline' does not mean it is always met — and that is where delays arise.

Typical examples that hold up a transaction

• Planning licences (licencias urbanísticas): if the property requires a licence — for works, subdivision, or first occupation — processing it involves timelines that can stretch depending on the town hall and its workload.
• Certificates: cédula de habitabilidad (habitability certificate), energy performance certificate, technical certificates to declare works… each depends on a third party and their own calendar.
• Land Registry notes and certificates: an up-to-date nota simple (Land Registry extract) or a Land Registry certificate can take longer than you expect during periods of high demand.
• Prior formalities for the non-resident buyer: obtaining the NIE (foreigner's identity number) or opening a bank account also start the clock ticking.

Silencio administrativo: be careful about assuming approval

You may have heard that 'if the public body does not reply, it counts as a yes.' That is only partly true. As a general rule, when you apply for something and the public body fails to resolve it in time, the law treats your application as approved — this is known as silencio administrativo (deemed approval by inaction). But there are important exceptions, and one of them directly affects property transactions.

In planning matters, the law provides that rights or entitlements that are contrary to planning rules cannot be acquired through silencio administrativo. In other words, if you apply for a licence that does not comply with the planning framework, silence does NOT grant it. This is why it is risky to buy a property assuming that 'a licence will come through on its own.' It may never come through at all.

Why starting early can reduce costs and problems

A property purchase contract usually sets a date for signing before a notary. If that date arrives and a formality is still in progress, one party may be in breach. And a breach can be costly: losing the deposit, paying compensation, or the entire deal falling through. Many of these situations can be avoided by setting formalities in motion early enough, before committing to specific dates.

My way of working is exactly that: before you sign anything, I identify which formalities depend on public bodies, how long they can realistically take, and which ones should be set in motion straight away. Prevention is usually less costly than remediation.

How to protect the contract

Here is the key tool — and I dedicate a separate article to it: conditions. A well-drafted contract can make its effectiveness contingent on obtaining a licence or certificate (condición suspensiva — suspensive condition), or provide for it to be unwound without penalty if that formality does not come through in time (condición resolutoria — resolutory condition). That way, if the public body is delayed, you reduce the risk of losing your deposit or finding yourself trapped in an impossible transaction.

If you are about to buy or sell on the Costa Blanca and there are administrative formalities involved, you are welcome to contact me before signing; I can review how the contract deals with it.