If you are the owner of a commercial property, it is possible that you want to make it profitable due to the current situation. Whether you want to sell it or rent it, you have to take into account several legal requirements to be able to do so. We will explain them below.
Requirements to sell a property or premises
To be able to sell a property or premises you must be the owner, and you must be in agreement with the other co-owners if there is more than one. It is not valid to be a usufructuary, but you must also have the bare ownership. The premises or the house must also be registered in the land registry in order to make it easier to sell it to a third party.
It is necessary to distinguish between the sale of the bare ownership, the transfer of a business premises with an active or ongoing activity and when you have rented premises.
- Empty business premises: you must be the owner and be up to date with the payment of taxes.
- Rented business premises: comply with the conditions of the lease contract (see later in the article).
- Transfer of business and property: when, apart from the property, you are the holder of an activity licence for the premises and it is active, you must contact the corresponding administrative body to find out what procedures are required to be able to transfer the activity.
- Compulsory certificates.
You must be up to date with the payment of taxes. You should ask for proof of payment of the IBI and, if the sale is made in the current year, detail the proportional part that corresponds to each party. If this is not the case, a payment agreement must be reached with the buyer and this must be recorded in the title deed.
You may find that the buyer wants to take over the mortgage that you have in force, that he/she wants to liquidate it or that he/she wants to contract a new one with another entity. Each of these cases requires different documentation and the consent of the bank that holds the mortgage guarantee. It is also possible to sell the property and pay off the mortgage with part of the price paid by the buyer. It is important that you consult a lawyer about these steps to avoid making mistakes that could cost you money.
Rented properties or premises
The landlord must comply with the rental contract in force, respecting its duration unless otherwise agreed by the parties. In order to sell the property, an agreement with the tenant is required. In case of disagreement:
- It is necessary to check if in the contract there are preferential acquisition rights, complying with the provisions of Art. 25 of the Urban Leases Law (LAU)(link). This right gives the tenant the right to buy the property or premises, before any other person, since he/she is already enjoying it.
- If you have expressly waived your right of first refusal, you must inform the buyer that the premises are rented and that he/she must be subrogated to the contract. It is important to know the seniority of the tenant as the LAU that applies to them will be the one at the time of signing the contract. In addition, due to their seniority, they may have certain rights.
Requirements for renting a property or premises
You must show the title of possession, but it is not necessary to be the owner. For example, you can be a usufructuary. In the case of multiple owners, you must have an agreement on the disposition of the property.
You need to have the energy efficiency certificate in force and the bylaws to know if there are any limitations on the use of the premises or any prohibition of activity.
In this case you will be able to transfer the payment of the property tax to the tenant if you expressly agree on it in the contract and the amount and frequency are specified. The same applies to the owners' association and taxes and rubbish collection fees, etc. levied on the property.
You do not need the bank's authorisation to rent. It is one of the ways that every owner has to enjoy their property and contrary to what is thought as an urban myth, your house "does not belong to the bank because it has a mortgage".At Audacia Abogados we want to give you the peace of mind you need in real estate matters and to assure you every step of the way. Call us and clear your doubts.