When buying a house you have to go with a thousand eyes. Deciding the place, the m2, the floor we want, with or without elevator, if it has loads, if it is well communicated, how much work we have left or if the price fits our budget are just some of the variables we must take into account to choose the house that best suits what we want and need.
However, it is important to look at things that, in principle, we do not usually notice. There are cases in which some vicissitudes can generate a limitation of the seller to dispose freely on his property, in this case, the property we want to acquire.
One of the main consequences of this, as provided for in different articles of the Bankruptcy Law, is the intervention of their powers of administration and disposition over their assets, a reality that will affect the transaction, but which, nevertheless, has not been reported to the Land Registry, and which, therefore, is not reported when a simple note is requested.
This situation is not so uncommon, as the data show. According to the newspaper El Español, almost half of the 2,982 bankruptcy proceedings filed in the Spanish courts in the second quarter of 2019, corresponded to individuals with no business activity. This is not an exaggerated figure, but it cannot be disregarded either.
Therefore, accessing the Insolvency Public Registry is the step that, in this type of situation, can save us some headaches when we intend to acquire a real estate property.
It is important to note that access to this registry is public, free and permanent. Neither is it required to justify or manifest any legitimate interest to do so, as provided in Royal Decree 892/2013 of November 15, which regulates the Public Registry.
In this way, any buyer can consult the aforementioned Registry and thus check if the seller is in bankruptcy proceedings and has limited powers of disposal and administration over its assets. The consultation, obviously, must be made prior to the execution of the legal transaction.