SPAIN Law and Practice Contributed by: Marta González-Llera, Toni Barios, Jorge del Castillo and Rafael Baena, Cases & Lacambra
funding sources including debt funds and crowdfunding platforms. • Sustainability and ESG focus – developers and investors are increasingly integrating energy-efficient features, green building cer - tifications and sustainable design practices into their projects to meet evolving market demand and regulatory requirements. • Digital transformation – the adoption of digital tools and platforms in the real estate sector has accelerated, especially in areas such as virtual property viewings, online transactions, Among all the measures and concepts outlined in Act 12/2023, dated 24 May, regarding the right to housing, perhaps the most significant is the provision allowing autonomous regions to declare areas with a stressed housing market. The above-mentioned declaration involves the implementation of rent limitation in said areas. However, as of the issuance of this document, only the region of Catalonia has declared a stressed residential market area. There are rumours in the press suggesting that Navarre, Asturias, and the Basque Country may also be considering such measures. and property management. 1.3 Proposals for Reform
and other general considerations such as avia - tion easements. Spanish legislation also stipulates other property rights such as: • co-ownership ( condominio ), which refers to the ownership of a thing or right belonging pro indiviso to several owners; and • bare ownership ( nuda propiedad ), which is the right of a person (called the “bare owner”) to own a property with the limitation of not being able to enjoy or benefit from it, and where the “usufruct” is the right of enjoy - ment, use, and benefit of a person (called the “usufructuary”) over a property owned by a bare owner. 2.2 Laws Applicable to Transfer of Title The Spanish Civil Code contains the general applicable regulations for the transfer of private properties. Concerning public properties, Sec - tion 1.1 of Act 33/2003, dated 3 November, on Public Administration Holdings, applies. Additionally, depending on the intended use of the property, the type of transmission, and its location, additional administrative regula - tions and authorisations may apply. These may include sector-specific legislation and regula - tions applicable to foreign investors. 2.3 Effecting Lawful and Proper Transfer of Title In Spain, to acquire ownership of real estate, it is necessary to have a valid acquisition title (“title”) and the physical delivery or legal transfer of the property (“mode”). In other words, having a doc - ument that demonstrates the intention to acquire the property (the title) is not sufficient; it is also necessary to carry out a material or legal act that effectuates the transfer of ownership (the mode).
2. Sale and Purchase 2.1 Categories of Property Rights
The main property right in Spain is absolute property or full ownership, the civil law equiva - lent of the common law concept of “freehold”. Absolute property grants the entire right to enjoy, use, encumber and dispose of an asset without limitations other than those set forth in the appli - cable regulations, such as planning and zoning limitations, the rights of neighbouring owners,
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