Spanish mortgages – Latest news.

 

Following our previous article about mortgages in Spain.

The CJEU resolution (21th of December 2016) allows consumers to claim their money back retrospectively from Spanish Banks

 

As we explained in our previous article, The Court of Justice of the European Union (CJEU) was recently asked to decide about an important case for Spanish consumers as well as for Spanish Banks. The final decision has now been issued and this is good news for those individuals who got a Spanish mortgage but not for the banks.

Some of you will recall that some Spanish mortgages signed in the last 15 years contained a clause that Spanish Courts recently declared null and void because of the “lack of transparency” and “the failure to inform customers adequately” when they signed the mortgage deed. These clauses are known as a “cláusula suelo” which means that they are subject to a minimum monthly payment even if the interest rate, which usually has a variable rate linked to the Euribor, is negative.

If you bought a Property in Spain during the property bubble (2000 to 2008) you were probably paying the appropriate interest. However, the interest rates were quite low after the recession and those who had a “clausula suelo” on their mortgages have been paying an unfair and excessive interest on their mortgages which they can probably claim back.

The consumer’s action group (Adicae) started in 2013, on behalf of 15.000 mortgage holders, a claim against banks claiming for the nullity of the “cláusulas suelo”, after these had been declared “abusives” by the Spanish Supreme Court but with a retrospectivity to May 2013. This was clearly unfair. If a clause in a mortgage was considered abusive then the consumer’s right to claim should not be capped to May 2013. It should be retrospective to the date in which the mortgage deed was signed.

The said action group went to Luxembourg asking for the backdating to the date that the mortgage was signed and the CJEU has today decided that Spanish Banks have the obligation to refund unlawful interest from the very beginning: backdated to the date the mortgage was signed (instead of May 2013).

This means that Spanish banks have to pay consumers around €4.000.000. Goldman Sachs says that BBVA will be the Spanish Bank with a higher debt in front of consumers with €1.815.000.000; CaixaBank (La Caixa) with €750.000.000; following them: Banco Popular and Bankia with €160.000.000. These are the main banks but there are around 40 more banks involved.

Obviously, there are some exceptions depending on the mortgage holder’s profiles or depending on the specific circumstances of each case, but what is clear is that if you or your clients signed a mortgage in Spain during the property bubble years you or them could have the right to claim some money back.

In the following months Spanish Banks will probably try to sign transactional agreements with consumers. We strongly recommend to contact a Spanish Lawyer for advice to 1) analyse your mortgage in detail and inform you if contains a “cláusula suelo” and 2) see if you have the right to ask for a refund when that Decision takes place and last but not least 3) to deal with your Bank to ask for the refund or to negotiate with it.

 

 

Claudia Font & Antonio Guillen

Spanish lawyers at gunnercookellp

1 Cornhill London EC3V 3ND 53 King Street Manchester M2 4LQ

 

A quick guide on buying property in Spain for UK solicitors

Beach huts

 

 

 

 

 

 

Do you have a client looking to buy property in Spain?

How can you help him/her from the UK?

 It is quite likely that you will have one or two clients looking for a property in Spain. The uncertainty of Brexit and the temporary weakness of the Sterling pound has not stop British buyers from their dream of buying a home in Sunny Spain. It is true that they are not buying as much as they did before the recession but they are still buying second homes and looking for a place to retire or a place to spend family holidays.

Very often, clients will contact their trusted advisors to see if they can give them some guidance or recommend a lawyer able to deal with the purchase of the property in Spain. Obviously, you cannot be expected to be versed on Spanish law and the normal thing is to recommend the client to look for a Spanish lawyer or to recommend one, if you have come across a firm in the past and you were happy with the service provided. Having said that, knowledge is never a burden and therefore see below a few tips on what should and what should not be done when buying property in Spain which will prove of help if you are approached by one of your clients asking for advice:

1) Help your client to make an accurate budget.

Apart from the price of the property your client should consider other costs involved in the transaction:

– Taxes, Notary and Land Registry: Approximately 10%-12%.

– Spanish Lawyer fees*

– Surveyor**

* althoughnot mandatory (because the Spanish Notary usually carries out the main checks on the title and charges), we would always recommend instructing a Spanish lawyer who can collaborate with you when your client is buying in Spain. He will carry on a full due diligence on the property and draft the necessary contract. The Notary Public will not do the above.

** we would recommend to have one when your client is buying a resale property in order to be 100% sure about what yourclient is going to buy.

2) Inform your client that he/she should save a 30%-40% deposit plus 10%-12% for the Notary, taxes and Land Registry fees.

Nowadays, most of Spanish banks are not offering mortgages which exceed 70% of the appraised value of the property. Your client will need to ensure that he/she has enough deposit to complete on the purchase, usually around 30%-40%.

3) Your client should have a clear idea of what he is planning to buy before committing to a purchase

Spain has different regions with big differences between them in terms of weather, lifestyle, tourism, etc and most importantly, in terms of price. We would recommend your clients to visit the place in winter so they can get an idea of the way of life outside the tourist season.

Once they decide where they want to buy, the second step is to consider the different types of properties they can buy, i.e. brand new, old property, off-plan property, urban or rustic land, and obtain legal advice to ensure they are fully advised on all aspects of being the ownerof a property in Spain.

4) Encourage your client to check different options of mortgages.

Make sure your client fully understands the conditions of the mortgage offer. We would recommend to have the draft mortgage deed reviewed by a Spanish lawyer in order to ensure that it does not contain abusive clauses. In our recent article about Spanish mortgages we talked about some abusive clauses that some Spanish lenders have been including in their mortgages in recent years and that should be avoided when getting a Spanish mortgage.

Look for the mortgage which is most appropriate for your client´s income and financials. There is a range of mortgages on offer and yourclient should pay special attention to the interest rate, repayment period, fees for setting up the mortgage as well as early repayment and cancellation fees.

 5) Advise your client to reserve the property and sign a purchase agreement or “contrato de arras”.

If yourclient finally finds “the” property, he/she will have to reserve it while you and your Spanish lawyer will be collaborating and dealing with all the checks that the transaction requires to ensure that they are buying safely. Your client will need to pay a reservation fee of around 3000 Euro which will take the property out of the market. Then, once all the checks have been done, and the documentation has been reviewed, he/she will be asked to pay a deposit of around 10% with the signing of the purchase agreement (contrato de arras) and the rest will be due on completion.

Signing an “arras” contract means that both parties have the right to withdraw:

If your client decides not to proceed with the transaction he/she will lose the deposit, but if it is the seller who withdraws, or if the property has been misrepresented, yourclient will be entitled to claim double of the deposit: his 10% plus another 10% compensation.

6) Consider engaging a surveyor.

Your client may consider that the property needs to be surveyed by a professional with appropriate experience and qualifications. That is very sensible thing to do, but your client will find that some Spanish estate agents will discourage this. If that is the case, the client needs to follow his/her own instincts and still instruct his/her own surveyor.

7) Check the annual expenses of owning a property in Spain.

Be certain of the likely annual expenses your client will incur, including service charges, property tax (IBI), non-residents income tax, wealth tax if applicable, electricity, water, gas, etc.

8) Instruct an independent Spanish lawyer to collaborate with you.

All of the above-mentioned advice can became a terrible bureaucratic fight if yourclient does not engage the expertise and help of an independent Spanish lawyer.

A Spanish lawyer will guide you or your client through the entire process, avoiding extra costs and, what is more important, ensuring that the property your client is going to buy has all it needs to be transferred into his/her name: no charges, no development plans affecting it, etc.

You can instruct a Spanish Lawyer based in Spain or in the UK. Please note that there are several UK law firms with an in house Spanish lawyer able to provide legal advice without your client having to go to Spain.

 9) Warn your client not to declare a lower value than the actual purchase price.

In the past it was quite common to declare a low value for the property in order to minimize the transfer tax payable by the buyer and the CGT payable by the seller. Nowadays, the Spanish treasury will prosecute anyone who declares a price lower than the one effectively paid. The wrongdoer will be fined and additional interest will be applied. On the other hand, when your client decides to sell the property, he/she will be liable to pay Spanish capital gains tax on any profit made and he/she will be liable for CGT on a much larger (but not real) profit.

 10) Recommend your client to make a Spanish Will.

We would recommend your clients to sign a Spanish Will when acquiring a property in Spain. This in order to avoid potential problems in the future for their relatives and beneficiaries. It is not compulsory but in our own experience, really advisable.

Claudia Font & Antonio Guillen

Spanish Desk

Gunnercooke LLP

www.gunnercooke.com

 

London   Manchester

Santa Ana del Monte. A story of successful recovery of deposits paid to an insolvent developer in Spain

Construction site photo

 

 

 

Litigation is never an easy thing.

When I was a trainee lawyer in Spain, my boss, who was a walking enciclopedia and knew every single law in Spain, used to tell me:

“Antonio, it is always better to reach a bad settlement than entering into a long but good case in Court because litigation is, regardless of the outcome, always exhausting and some times frustrating”.

I always followed that advice and tried to settle where possible (provided that the client was happy with the settlement reached, of course) but sometimes a settlement is not possible because there is no intention to settle from the other party or simply because there is no money to settle. This is what happened with a development that I know quite well in Spain. The development was called Santa Ana del Monte in Jumilla and it was supposed to be a very interesting development with nice properties and golf courses until the recession put a halt on the construction and the developer had to file for administration, then eventually after 5 years of failed negotiations, liquidation.

When I say that I know the development quite well is because I had more than 100 clients who instructed me and a barrister litigator that we use in Spain called Emilio Lucas Marin (another very well versed lawyer who receives my admiration) to represent them in the insolvency procedure and try to get their money back. After 5 years of talks, legal writs, claims, appeals and some eventual sleepless nights the developer filed for liquidation and the clients were left with barely no chances to get their deposits back, deposits that ranged from 30,000 Euro to 100,000 Euro. We then explored a possibility that had been explored in only a few cases which consisted of issuing legal proceedings against the bank that had received the deposits. This kind of action could be taken on the basis that Spanish law 57/1968 seemed to state that when a bank receives the payment made by an individual towards the construction of an off-plan property, that bank could be held jointly liable if the developer does not supply a bank guarantee to guarantee the safety of that deposit. This is exactly what happened in Santa Ana del Monte. Purchasers paid their deposits into a bank account of a Spanish bank, the developer used the money and in most of the cases failed to secure the deposits with a bank guarantee. On this basis, we studied the possibility of taking action against the said bank. Other law firms did the same and others opted for issuing legal proceedings against all the banks that had provided bank guarantees for that developer in the past.  We decided to take action solely against whichever bank received the deposit in that particular case and it worked.

3 years down the line we have received more than 20 positive judgments where the Judge has ordered the bank to repay the deposit in full. Very often those judgments also order the bank to pay legal interest and legal costs. In other cases the Judge has been more prudent and not awarded legal fees but generally there is an order for payment of interests attached to the order for full refund.

We still have several clients who are litigating against the bank but looking at the current trend of Judges ruling in favour of the purchaser/client the odds are clearly in favour of the client.

What is the moral of this story? Well, first of all I still believe in the advice given by my first mentor in the legal profession. When dealing with a dispute always try to settle if possible. When this is not possible then litigate but make sure that you have sufficient legal grounds to win. And if by any chance you have paid a deposit for an off plan property and this was never built you may have a case against the bank that received your deposit. If that is your case, speak with a lawyer to see if you have a strong case against that bank as this may be your only chance of getting your money back.

In memory of Miguel Viladés (R.I.P), a superb lawyer and a gentleman who, together with his son Alberto, mentored me and initiated me into the legal profession.

 

 

DEATH, BANK STATEMENTS AND TAXES IN SPAIN

When the Spanish estate is not only made of properties 

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When inheriting assets in Spain, the first thing that comes to mind is property but the truth is that assets also involve bank accounts, shares and other type of properties such as a car or even a boat.

We have written various posts about the procedure of dealing with inheriting a residential property but not enough posts on a related matter like the money in the Spanish bank. These accounts are often used to pay utility bills and taxes related to the property. However, some people who have been living in Spain for long periods of time end up, understandably, gathering important amounts of money in the bank. 

Whether you are dealing with an estate with both property and bank accounts or just a simple estate with a bank account, it will be necessary to contact the Bank in order to obtain a certificate showing the balance at the time of death. In certain regions of Spain, like the Balearic Islands, the bank will also provide you with a statement showing the transactions that took place in the 12 months before the death.

Banks generally will want to see the original death certificate, the certificate of last will and the last will of the deceased. Don’t be surprised if the bank only accepts to release information to a beneficiary or to a person that holds power of attorney from a beneficiary. This is also applicable to lawyers. Contrarily to what happens in the UK, where the solicitor’s word indicating that he/she is acting for the beneficiary or the personal representative is sufficient for the bank, the Spanish Banks will want to see a letter of authority or a power of attorney from the beneficiary to the lawyer. In certain occasions, the bank will only accept to release the information if the documentation is presented at his branch in person by the beneficiary or his lawyer! Finally, some banks will charge a fee for opening a “testamentary file” and producing the certificate, something that is clearly unfair and abusive and that should be challenged if demanded.

All the UK documentation, such as the death certificate, Grant of Probate and UK Will (if applicable) needs to be   translated by an Official Translator and legalised with The Hague Apostille to be valid in Spain.

Once the bank is informed about the deceased’s demise, the account will be frozen until the Inheritance Deed is signed and the Taxes paid. Once all this happens, the beneficiaries or the lawyer holding power of attorney will appear in person at the bank supplying the Inheritance Deed, the certification of the payment of the inheritance tax and they will sign a document agreeing the destination of the money, either transferring this directly to a UK bank account or keeping it in a Spanish account.

The above can seem complicated and the fact that each bank (and branch!) operates differently can make the whole procedure look far more complex than what it really is but in the end everything is down to providing the bank with the documentation requested and fulfilling its criteria so funds can be released as per the beneficiaries wishes.

First use license and habitation certificate. Tomatoe, tomato. Are they the same thing?

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There are two documents which are essential before moving into a house in Spain. They are called first use license (“licencia de primera ocupación”) and habitation certificate (“cédula de habitabilidad”). These two documents sometimes have their own validity and in other occasions complement each other. It is difficult to summarize the requirements for these two documents because each region has its own legislation and also because they are very similar.

The First use license aims to check whether a property has been built according to the technical design and to the building permit. Once granted, it confirms that the construction has been built in accordance to the licence granted and the designs submitted at the Town Hall planning office. This licence is therefore vital for new properties or for properties that have been totally converted or with relevant major works. The person obliged to request this document is the holder of the planning and construction permit, generally the owner or the property developer.   It is an essential document required to apply for the provision of utility services, such as electricity and water and some regions in Spain demand this document prior to selling or letting a property.

In the most extreme cases, the absence of the said license could even imply a cause for the termination of a rental contract.  The lack of a first use licence can also prove a problem for an Estate Agent as he could be held liable for not checking this point and he could lose the right to receive his commission.

On the other hand, the Habitation Certificate is a document that certifies the minimum safety, health and occupation levels in a property in order to be dwelled. Furthermore it controls the minimum living surface and equipment in the property.

In certain areas like Cataluña, this document is compulsory and a property cannot be sold or let without it. In other areas, the first occupation licence covers the functions of the habitation certificate and therefore there is no need to obtain both. Depending on the kind of property and the place it is located, the expiration time will be different and will range from 6 months to 15 years. These are the reasons why it is advisable to verify this point before signing any contract or committing to the purchase of a specific property.

Obtaining this document is not complicated. If the seller does not have the document you must ask the seller to supply it before completion. If this is not possible and you are prepared to take the risk of completing without the habitation certificate in place, you must sort it after completion. The best way to do it is by contacting an Architect and requesting him or her for a certificate which will have to be endorsed by the Professional College of Architects. The Architect will inspect the property and verify that the property meets the regulations. It may be the case that someone appointed by the Town Hall also inspects the property prior to issuing the certificate of habitation, although this is not necessarily the case.  Once you have the Architect’s certificate, you have to present it before the corresponding public administration, together with the documentation required. Then, eventually, a certificate of habitation will be issued.

As indicated, these are vital documents that need to be requested prior to buying a property in Spain. Each region has its own intricacies but in general terms most of the regions in Spain request the existence of a document certifying the habitability of a property. These could mean both the First use licence and the habitation certificate or just one of them. When in doubt, the best thing is to seek independent legal advice as the lack of such a document could imply that the property is illegal and non-habitable.

WHAT IS THE ENERGY PERFORMANCE CERTIFICATE (CERTIFICADO DE EFICIENCIA ENERGETICA)?

 

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From June 1st the Energy Performance Certificate will be required in all contracts of sale or rental in Spain. This regulation comes from a European Directive and it is already in force in other EU countries.

This certificate analyzes the demand and energy consumption of a building and its result is summarized in a label very similar to what we’re used to seeing in appliances. With a color code, it classifies households according to a scale ranging from the highest category, the “A” (lower consumption), to the lowest, the “G” (higher consumption). It also incorporates some measures recommended by the relevant technician in order to consume less and reduce the amounts of the bills.

Be aware that the certificate should be included in the information that the seller or landlord must provide to the purchaser or tenant when selling or letting the property, so this document should be available before entering into any transaction. The Energy Performance Certificate is valid for 10 years.

A qualified technician must visit the property and take the necessary information to issue the certificate and sign it. You don´t need a particular grade to sell or rent your home. You just need to ensure that you get this certificate for prospective tenants or buyers. However, a good grade will definitely add value to the property.

The cost of the energy performance certificate shall be determined by the market. There are no official prices for this work, and currently there are a lot of companies offering this service, but you must be careful, because the Energy Performance Certificate should be signed by a competent technician like an Architect, Technical Architect, Engineer and Technical Engineer, and it must be authorized by the Ministry of Industry.

There are some exceptions to this obligation of providing the certificate and we take the opportunity to mention the most important ones:

  • Isolated buildings or units with a total useful floor area of ??less than 50 m2.
  • Buildings or Properties used or intended to be used for either less than four months a year or for a limited time a year and with expected energy consumption of less than 25% of which would be of use throughout the year.

If you are interested in selling or letting a property, we can help you checking if it is applicable to your property or not, and if you need it, we can deal with several companies authorized to issue these type of certificates.

This article has been written in collaboration with David Lorenzo García, Spanish lawyer and intern at DWF LLP.

 

Can I renounce to an inheritance in Spain?

A Business Men Climbing a Pile of Papers

 

 

 

 

 

 

 

 

In most occassions, inheriting from a dead relative or friend comes associated with an increase in wealth. The heir or beneficiary inherits the assets or money that the deceased had and once the inheritance tax is paid, which sometimes can prove very expensive, the heir is left with a property in Spain and hopefully some money in the bank. This, once we dettach it from the pain and grievance caused by the death of the loved one, usually has a positive side. There will be a property in Spain that can be sold, let or used during holidays. If the property is sold, the heir will be able to get some money after the sale and hopefully spend it or save it as he wishes.

However, this is not always the case. In some cases the property might be charged with a Spanish mortgage leaving no equity for the heir. In other occassions the property could be subject to very high maintenance expenses such as community fees, golf course fees, etc that make the whole thing of owning the property more burdening than having no asset at all. Finally, it may be the case that the inheritance tax due on the Spanish assets is extremely high and the heir is unable to pay it without selling the property. In those circumstances it is normal for the heir to question his intentions and weigh the possibility of renouncing to the Spanish estate.

In general terms, renouncing to the Spanish estate is not a good idea because in most of the cases there will be a property that can be let out or sold. Sometimes it will be a matter of waiting a few years until the market picks up or the mortgage is paid off, but most people do not renounce to what they inherit in Spain. Notwithstanding this, it is true that there is a small percentage of heirs that are not interested in inheriting the assets in Spain and who see the Spanish property more as a burden than an asset. In those circumstances, the heirs can renounce to the Spanish estate and their rights will pass to either the substitutes under the will or to their own beneficiaries, which usually means their children. This is something that needs to be considered before making any renounciation because the renounciation can trigger further consequences that may prove even more detrimental. For instance, imagine that Joe Bloggs dies with assets in Spain. His Spanish will states that everything will go to his daughter Isabelle. She is not interested in the Spanish property and therefore decides to renounce. However, the will states that if Isabelle renounces, everything will go to her children (the grandchildren of Joe Bloggs) and the said children are minors. Under Spanish law, minors cannot renounce to an inheritance without the consent of a Judge. This means that the inheritance will reach a dead point where the minors can accept the estate but not reject it without the consent of a Judge. As you can see this has caused an even bigger problem.

The above is one of the scenarios that can arise. The important thing is to seek legal advice before making any decision in this regard. Do not listen to those who say that you cannot renounce to a Spanish inheritance because this is not true. Anyone, who is of age, can renounce to the Spanish inheritance but before doing it they should seek legal advice to ensure that they understand the consequences of the renounciation and see the different options available. The heirs might be surprised to see that they can transfer their rights to a specific person who might be more interested in the property than them.

 

Buying under-value in Spain Part I

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It is no secret that the Spanish property market is very quiet. Nowadays, any person wanting to sell reasonably quick has to make a noticeably discount on the sale price. This could mean reducing the price in 20% or 30%. This could prove very atractive to the purchaser as it would allow him to buy a bargain but the said purchaser needs to be careful with a potential comeback from the Spanish Tax office in respect of the unpaid transfer tax. This is due to the fact that all properties in Spain have a minimum tax value. This is the minimum value assigned by the Tax office to each property.  Nothing stops someone from selling under that value but this could bring some consequences to the buyer.

The first one is in respect of transfer tax. As any person who has bought property in Spain will know, the purchase of a property in Spain is subject to transfer tax, which ranges from 7% to 10% depending on the area and price. This tax is paid by the purchaser. Now, imagine that Mr Joe Bloggs buys a property in Mallorca for 100,000 €. The minimum tax value of that property is 150,000 €. Mr Bloggs is supposed to pay 7% of the purchase price of 100,000 €, that is 7,000 €. However, the minimum tax value for that property is 150,000 €. This means that it is very likely that the Tax office will revert to the purchaser ande demand the outstanding transfer tax over the tax value, in this case a further 3,500 €. Why? Well, the Tax Office believes that the property is worth more money and although it accepts the sale for less than its tax value, the Tax Office is not prepared to give up on the potential revenue that would be genereated if the property had been sold for its minimum tax value and hence the requests for another 3,500 €.

Market value        100,000 €

Transfer tax 7%        7,000 €

Tax value               150,000 €

Transfer tax 7%         10,500 €

7000 € + 3,500 €= 10,500 €

If Joe Bloggs has paid 7000 € in respect of transfer tax then the Tax Office will request a further 3,500 € because it believes that the total tax that should have been paid was 10,500 €.

This is clearly unfair but unfortunately this seems to be the situation in many areas in Spain, where the tax values have not been adapted to the reality of the market.

The aggravated buyer can pay the tax and forget the matter or he can appeal the decision. Any appeal in this respect will require support with an independent valuation confirming that the price value is in accordance to the market value and therefore proving that the tax value is outdated. The Tax office will then consider the appeal and make a decision, which in some cases could imply withdrawing the request for extra payment. The main problem is that the appeal will involve lawyers and valuers and in some cases it may not be worth the effort. As always, each case needs to be studied separately as one solution cannot be applied to all the cases. However, if you are going to buy property in Spain for a very attractive price, you better check the tax value first to ensure that you will not be asked to make a further payment a few months after completion.

 

Can I complete the purchase of a property in Spain without a NIE?

 

In a clear homage to my youngest daughter’s favourite cartoon: yes you can!

I am talking about NIEs and not laying bricks but contrariliy to what happens in the Bob the Builder’s cartoons, the lack of NIE will not necessarily lead to a happy ending. A NIE number (tax number for non-residents who either live, work or own property in Spain) is very important and has to be obtained sooner or later.

The common  perception is that it is not possible to complete the purchase of a property in Spain without a NIE. This is not true as it is in deed possible to sign and complete the purchase without the said number. The Notary who drafts the deeds will warn the purchaser of his/her obligation to obtain the said number but completion will not be stopped. However, once the purchase has been completed, the purchaser will have 30 days to obtain the NIE and pay the transfer tax as no tax can be paid without a NIE in place. This 30 days window seems wide enough but the purchaser needs to bear in mind that obtaining a NIE is not as straightofroward as it looks and the procedure could take several days and sometimes weeks. In the meantime, the property will continue to be registered in the name of the previous owner. Furthermore, if the tax is not paid withing 30 days from completion, penalties will be applied to the tax due, increasing unneceasrily the tax liability.

This is why although a NIE is not compulsory for completion, it is strongly advisable and we always prefer to wait until the client has a NIE number in place. If the client is in a hurry to complete (imagine a purchase with a large discount being offered on the basis that the purchase is completed in one week) then the lack of NIE will not be an impediment to complete the purchase. It will be sufficient to inform the purchaser of the need to obtain the said NIE as soon as possible or, if instructed by the client to obtain it ourselves on his behalf, take the necessary steps to obtain the said number. 

Once again, not all urbans legends surrounding Spain are true. This is just another example of an urban legend that has been manipulated and misunderstood although, as usual with urban legends, there is some wisdom behind the advice.