Real estate finance law in Spain

Yes. Generally, there are no restrictions on the ownership of land by foreign parties or in relation to the taking or enforcement of security interests by a foreign party. 

Yes. Mortgages can be granted over real estate assets, including objects under construction or unfinished buildings. This security is accessory to the primary obligation. 

2.1 The distinction between mortgages on land and buildings on the land? 

There is a distinction between an interest in land and an interest in the buildings over the land. However, it is common for the owner of the land to also become the owner of the buildings on such land under the principle of “superficies solo cedit”. In this sense, buildings on land which are encumbered by a mortgage are also considered to be mortgaged. An exception to such principle is, for example, a surface right (derecho de superficie) where the surface right holder has full title over any construction built over the surface right. 

2.2 Are mortgage certificates for a certain value issued? What is the cost? Are they transferable? 

No. Mortgage certificates do not exist under Spanish law. Nevertheless, for granting a mortgage in Spain it is required to obtain a specific valuation under the Ministerial Order ECO/805/2003 of 27 March 2003 on “Rules for the valuation of immovable property and certain rights for certain financial purposes. The cost arising for such valuation depends on the valuer. In principle, the certificates are not transferable, and their validity is time limited. 

2.3 Can second ranking security be taken? If so, how is it registered? Is a priority deed also registered? 

Yes. The same property may be burdened by several mortgages. A registered mortgage has priority, as of the date of registration, over any later real estate charges or subsequent registered mortgages.

Whilst there are no special registration requirements for second ranking mortgages, please note that a second ranking mortgage should be registered in the same way as a first ranking mortgage. 

The public deed must be registered with the relevant Land Registry (Registro de la Propiedad) to be considered as a “priority” deed as the registration is a perfection requirement. 

2.4 Can the real estate be transferred to a third party (being still subject to the mortgage) without the lender’s consent? 

Yes, as long as the mortgage is registered in the relevant Land Registry, but the transferability of the property may be subject to the restrictions agreed in the public deed of the mortgage. 

2.5 Are there any preferred creditors [A1] (other than a prior ranking mortgage holders)? 

Yes. The Tax Authorities may be a preferred creditor in relation to certain taxes relating to the land/building for a four-year period. This means that taxes payable due to the mortgage granted or other taxes related to the land, in case of enforcement of the mortgage, would be paid prior to the secured obligation. 

2.6 Can “all monies” mortgages be taken? 

No. The total amount of the secured liabilities must be specified in the mortgage at the time it is granted. 

2.7 Can a landlord’s right to receive rent be charged, assigned or transferred to a lender by way of security? If so, how? 

Yes. The landlord´s right to receive rent can be pledged, charged or assigned in favour of a third party. Usually credit rights arising from lease agreements are pledged. 

2.8 It is customary/possible for a lender to take a charge/security over bank accounts of the borrower? Is it usual for lenders to contractually restrict rights to withdraw funds in accounts until the scheduled interest and capital repayments are made? 

Yes. In Spain, it is possible to take a pledge over the credit rights arising from bank accounts, but that is a different security than the mortgage, as the granting of a mortgage does not entail any restriction to withdrawing funds from the accounts of the mortgagor. 

Therefore, a lender can also restrict the borrower’s rights to withdraw funds by means of granting a pledge over the relevant account, but this restriction needs to be agreed in the corresponding security document. 

Under Spanish law there are certain requirements for the perfection of the security interest namely: (i) the security interest must secure an obligation that has to be clearly identified; (ii) the mortgaged asset must be owned by the mortgagor and described in the public deed; (such asset shall be registered within the Land Registry and needs to be one that can be mortgaged); (iii) the mortgagor must freely enjoy the right to dispose of the asset; (iv) the mortgage agreement must be executed in Spanish and formalized in a public deed (escritura pública) before a public notary and (v) the public deed has to be registered with the appropriate Land Registry (Registro de la Propiedad). 

Once the real estate mortgage is registered with the Land Registry, it is duly perfected and automatically displays both inter partes and erga omnes effects. 

3.1 Consequences of failure to register? 

As registration is a perfection requirement, if a security and in particular, a real estate mortgage, is not registered in the relevant Land Registry, it won´t be effective and enforceable against third parties. 

3.2 Formalities for execution of security and costs? 

As explained above, security must be granted by means of a public deed (escritura pública) before a Public Notary[A2] . Due to this requirement and money laundering concerns, all parties (excluding certain exceptions under Spanish anti-money laundering laws, among others, EU financial entities and listed companies and their subsidiaries) shall have a beneficial ownership statement deed (acta de titularidad real) and all foreign entities need to have a Spanish Tax Identification number. Without these, a notary will not notarise any deed. Registry and notarial fees are calculated on the basis of official charts applicable to the underlying value of the transaction at hand. 

No. There is no concept in Spanish law similar to a trust. However, from a structural point of view, the following may be used to achieve a similar effect – security documents may be entered into directly by each of the lenders or by a security agent duly empowered by the lenders. Such security agent would accept the granting of security interests in favour and on behalf of the lenders. Always acting in their names and on their behalf. In addition, such an agent can also be empowered to carry out any actions in connection with the loan, its enforcement, and the enforcement of the security, exercising the corresponding rights of the lenders but always acting as their representative. 

4.1 What happens if the lenders change later on e.g. on a transfer? Does new security have to be signed? 

Upon the occurrence of a change in the lenders, the security agreements are considered to be automatically assigned to the new lender, but it needs to be recorded at the Property Registry by means of filing the assignment agreement duly notarized, so the new lender is entitled to enforce the mortgage. 

There are two ways to transfer a lease agreement to a new tenant, either by way of a sub-lease or an assignment of the lease agreement to the new tenant. 

For residential leases, in both cases, the landlord’s written consent is required. Further, the property may only be partially subleased and the rent for the sublease may not in any case exceed the price of the lease. 

For non-residential leases, unless otherwise agreed by the parties, the original tenant does not need the landlord’s consent to sublease the property or assign the lease. However, both the sublease and assignment shall be notified to the tenant within one month as from the execution of the relevant agreement. The landlord is entitled to increase the rent by a 10% in case of a partial sublease and by a 20% in case of the assignment of the lease or total sublease of the property. Further, a change in the tenant as a result of the merger, transformation or spin-off of the company shall not be considered an assignment, but the landlord shall be entitled to increase the rent as set out above. 

6.1 Can a foreign jurisdiction (either a court or arbitral tribunal) be chosen to settle disputes and under what circumstances may such a choice not be recognised? 

Yes. Submission to foreign courts of disputes in connection with a private legal relationship, provided said legal relationship involves a foreign element (i.e. a non-resident as a counterparty), are not contrary to Spanish law and should, in principle, be enforceable in Spain. 

The jurisdiction of Spanish courts is, however, mandatory if the dispute is within the exclusive or special jurisdiction of Spanish courts, e.g. relates to real estate property or insolvency of a Spanish party, among others.

Submission to arbitration is valid and enforceable. 

6.2 Does the local law allow for the enforcement of arbitral awards or foreign judgements without review? 

Usually yes, although this may depend on any specific treaties applicable in each case. Recognition and enforcement of a foreign arbitral award or a foreign ruling in Spain is subject to compliance with relevant enforcement procedures under Spanish law and ratified by Spanish international treaties (including the 1958 New York Convention or Brussels I bis regulation, among others). 

6.3 How can that security be enforced? Can it be sold to a third party? Is it possible for a secured party to appoint receivers / liquidators and if so how and what are their powers? Can security be enforced directly without recourse to the courts and are private sales of security possible? Does it have to be sold by auction? 

Under Spanish Law, security can be enforced in two ways (being it formalised in a public deed and be registered in the Land Registry). 

1. Judicial enforcement of security. It is a judicial procedure subject to legal formalities, in which the foreclosed party may oppose the enforcement on specified grounds. If the opposition is unsuccessful, the property (assigned to the security) will be publicly auctioned and will be given to the highest bidder. 
2. Out of court proceedings. These proceedings consist of the extrajudicial forced sale of the mortgaged property and shall be carried out before a public notary in the place where the mortgaged real estate is located. 

Such out of court proceedings are feasible only if: (i) the mortgage covers a given amount corresponding to principal, interest accrued in accordance with the provisions of the public deed and expenses for the enforcement; and (ii) the public deed expressly foresees the out-of-court sale of the mortgaged asset in an independent provision along with the price of the real estate properties for public auction enforcement purposes and some other formal provisions. 

Once the proceedings are initiated, payment to the debtor will be required. If payment is not made, the public notary will organise a public auction, which will end with the execution of a public deed of sale of the auctioned property to the highest bidder.

Unless otherwise agreed, the security may also be transferred (in whole or in part). 

On enforcement, it is not possible for the secured party to appoint a receiver or a liquidator. 

6.4 Is the lender responsible for maintenance and insurance of the real estate after default until sale? 

No. The borrower remains responsible. However, the lender can carry out certain actions to secure the mortgaged asset if the borrower fails to do so. 

6.5 Is there any method of foreclosure (lender obtaining good title to the real estate in satisfaction of all or part of its debt)? If so, does this require a court order and is it only automatically used when the real estate is not sold at public auction? 

In principle under Spanish law, lenders cannot acquire the secured property. A lender may reach an agreement with the borrower to acquire the title to the real estate in satisfaction of the debt (dación en pago).

However, this agreement may be declared invalid and ineffective by courts, because it is foreseen for very specific cases and subject to tight legal requirements. Thus, as a general rule, under Spanish law the direct appropriation by the mortgagee of the mortgaged asset is prohibited, in Spain is known as pacto comisorio. 

Yes. As explained above, a foreign lender will require Spanish Tax Identification number. 

Assuming real estate is held in a locally incorporated single purpose vehicle to provide an alternative to enforcement of the mortgage over real estate: 

Yes. 

Yes. The pledge should be recorded. There is no public register of pledges over shares. A pledge will be recorded in the relevant ownership title and in the shareholder´s registry book and in the case of quoted company, in the accounts of the depositary. It is not mandatory but highly advisable that the management body of the relevant Spanish company issues a pledge certificate, by which declares, inter alia, the number of shares owned by each shareholder and certifying that the pledge has been fully registered in the relevant shareholders registry book and that the pledged shares are free of any prior pledge, charge, lien or encumbrance. 

Security has to be granted by means of a public document before a public notary and a note of the grant of the pledge must be recorded in the relevant ownership title registration, in the shareholder´s registry book and issue the abovementioned pledge certificate. 

Pursuant to Spanish law there are certain requirements for the perfection of the security interest namely: (i) the security interest must secure an obligation that has to be clearly identified; (ii) the pledged asset must be owned by the pledgor; (iii) the pledgor must freely enjoy the right to dispose of the asset; and (iv) the transfer of possession of the pledged asset in favor of the creditor or a third party jointly designated by the creditor and the pledgor. 

Provided that the pledged asset is physically or symbolically transferred to the pledgee, the pledgor is prohibited from any right of transfer, assignment or encumbrance over the asset without the consent of the pledgee. 

3.1 Consequences of failure to register? 

If it is agreed that certain rights (i.e. voting rights) are attached to the pledge, failure to register could result in the company whose shares are pledged not recognising the rights of the pledgee. 

3.2 Formalities for execution of security and costs? 

Security must be granted by means of a public document before a Public Notary. Due to these requirements and money laundering concerns, foreign entities require a Spanish Tax Identification number. The notary could refuse to notarise the deed otherwise. Notarial fees are payable and vary depending on the secured amount. 

No. The Notary makes a note of the charge in the relevant ownership title confirming that such shares have been pledged. 

5.1 Can it be sold to a third party? Is it possible for a secured party to appoint receivers/liquidators and if so how and what are their powers? Can security be enforced directly without recourse to the courts and are private sales of security possible? Does it have to be sold by auction? 

Yes. The shares can be sold to a third party by means of a public auction.

Creditors may request a declaration of bankruptcy of a company in certain cases (and therefore, the appointment of receivers).

Security can be enforced without recourse to the courts and private sales are possible if it is for security in a quoted company and it is expressly foreseen as enforcement method in the relevant security document. If the pledged asset does not qualify as a security (i.e. shares in quoted companies) it must be sold at auction. 

5.2 Are loans from shareholders subordinated? If so, how is this done? Is it customary for such loans to be waived or written off contractually as part of an enforcement of a share pledge should a default occur? 

Loans from shareholders are only subordinated if it is expressly agreed in the loan. However, in the framework of bankruptcy proceedings, loans from related parties would be subordinated to the repayment of the remaining debt. Subordination needs to be expressly agreed in the corresponding agreement. Subordinated loans are not waived or written off contractually unless the debt may be settled against another one held by the borrower against the lender. 

Legal issues that are likely to have an impact upon the valuation and the security of income from an investment perspective. 

1.1 Typical lease length? 

The length of the lease is freely determined by the parties. 

Notwithstanding the above, the typical length (i) for a residential lease could be one year and (ii) for a non-residential lease between ten and twenty years, without prejudice to the statutory extensions set out in question 1.2 above and the right of any or both parties, as the case may be, to early termination of the lease agreement. 

1.2 Maximum/minimum lease length if any? 

There is no maximum or a minimum lease term for non-residential lease agreements. 

However, in relation to residential leases, Law 29/1994, dated 24 November 1994, of Urban Lease Agreements (the “Law on Urban Leases”) sets, in general terms, a minimum duration of five or seven years, depending on whether the landlord is an individual or legal entity (unless the tenant gives the landlord at least 30 days' notice of its intention to terminate the agreement early). 

Furthermore, once the initial term has expired, the agreement will be automatically extended, if neither party has given the other at least (i) four months' notice in the case of the landlord and (ii) two months' notice in the case of the tenant, for annual extensions up to a maximum of three additional years (unless the tenant gives the landlord at least 30 days' notice prior to the end of each year of its intention to terminate the agreement). 

In relation to extraordinary extensions, the Law on Urban Leases sets out that any lease agreement entered into as from 26 May 2023 shall be extraordinarily and mandatorily extended for: 

• a maximum period of one year in the same terms and conditions agreed in the lease agreement, at the tenant’s request and unless both parties entered into a new lease agreement, provided that (i) the residential lease agreement has been entered to use the dwelling as their “regular place of residence” (residencia habitual); (ii) the tenant is in a situation of social and economic vulnerability accredited by the relevant social services; and (iii) the landlord is a major holder  1 ; 
• and three additional extraordinary extensions of one year each, under the same terms agreed in the lease agreement, at the tenant’s request and unless it has been provided for otherwise in the lease agreement (i.e., the tenant has waived this extraordinary regime in the lease agreement) or a new lease agreement with the tenant has been entered into with certain rent limitations and provided that the dwelling is located in a stressed area  2 .  

Nothing is stated in connection with a maximum lease duration. 

1.3 Statutory controls and obligations re renewal/termination of leases (does tenant have automatic right to renewal, or can they apply to the courts for a new lease); also does some form of notice have to be served to terminate a lease to avoid renewal? 

For non-residential leases, there are no statutory controls, and the existence of obligations for renewal/termination of leases will depend on the agreements between the landlord and the tenant. 

In residential leases, the tenant is authorised by law to terminate the lease agreement at any moment once the first six months of the lease term have elapsed, as long as its intention of terminating the lease agreement is notified to the landlord, at least, 30 days in advance to the expected date of termination and without prejudice to the statutory penalty as set out in question 1.4 above.  

Notwithstanding the above, as indicated in question 1.2 above, extensions of the leases are automatic and mandatory in favour of the tenant (except for the legal extension after the initial term of five or seven years, respectively). 

On the other hand, the landlord as a natural person is authorised by law to terminate the lease agreement at any time once the first year of the lease term has elapsed, as long as its intention of terminating the lease agreement is notified to the tenant with, at least, two months in advance to the expected date of termination and provided that the landlord or its family (in the first degree of consanguinity or by adoption, or for their spouse in the event of a final ruling on their separation, divorce or marriage annulment) needs to use the dwelling as permanent housing. 

1.4 Any overriding statutes concerning the ability of the tenant to break a fixed term lease (whether or not included as a term of the lease)? 

In the case of non-residential leases, the parties to the agreement may freely regulate the terms of the agreement and the consequences of its non-fulfilment by the tenant (the most common would be the application of a penalty, for example, equal to the sum of all monthly instalments until the end of the compulsory length for the tenant, without prejudice of the possibility of a later moderation by the judge, as the case may be). 

For residential leases, the Law on Urban Leases provides that, in case of early termination by the tenant – once the first six months of the lease term have elapsed, as mentioned in question 1.3 above – a compensation for the landlord consisting of one month’s rent per each pending year of the term agreed by the parties at the execution of the lease agreement. 

In the case of both non-residential and residential leases, if the landlord does not comply with its obligations concerning the term agreed for the lease agreement, the tenant will be entitled to demand its fulfilment. 

1.5 Any other security of tenure provisions available to a tenant that would frustrate possession or prevent receipt of market rents? 

In respect of both residential leases and non-residential leases, should the landlord decide to carry out any improvements in the leased property, prior notification to the tenant with, at least, three months in advance must be made. Then, within one month from said notification, the tenant will be entitled to early termination of the lease agreement (which will be terminated within two months of the withdrawal notice, without the works being able to commence), except where the works do not affect (or hardly affect) the dwelling. 

If that is not the case, the tenant may demand a reduction of the rent in proportion to the area of the property that the tenant is being deprived from (as well as in the case of conservation works exceeding twenty days) and a compensation for expenses incurred as a result thereof. 

On the other hand, in case of loss of the landlord’s right on the property devoted to non-residential leases  3  or even in case of transfer of its ownership, the lease agreement will be terminated unless it has been previously entered into the Land Registry and without prejudice to the tenant's pre-emptive right in case of sale of the property devoted to both residential and non-residential leases. 

2.1 Rental income receivable quarterly/monthly in-advance/in-arrears? 

Both the amount of rent and the method of payment are freely determined by the parties. 

Nevertheless, for residential leases, unless otherwise agreed, the payment of rent shall be monthly and shall take place within the first seven days of each month. In no case may the landlord demand advance payment of more than one month's rent. 

2.2 Periodicity of reviews? 

In non-residential leases, the parties freely determine periodicity of reviews. 

In residential leases, an express agreement is necessary for the rent to be reviewed which, if applicable, will be reviewed annually on the terms agreed by the parties. In the absence of an express agreement on the reference index, the rent will be reviewed in accordance with annual variations (reductions or increases) in the Competitiveness Guarantee Index, with the limit set at the percentage variation of the Consumer Price Index (CPI) – which is published by the Spanish National Statistics Institute. 

2.3 Basis of review (upwards-only or variable, indexation or market rent)? 

As already stated in question 2.2 above, the most common basis of review is the annual variation of the Consumer Price Index (CPI), upwards and downwards, published by the Spanish National Statistics Institute. Further, for non-residential leases, it is common to agree, in addition to the ordinary reviews, extraordinary reviews once the five /seven years have elapsed, in order to adjust the rent to the expected market rental prices. 

On the other hand, in residential leases (once the first five/seven years have elapsed) and in non-residential leases (as from the beginning), the landlord, if they carried out improvement works, would be entitled, unless otherwise agreed, to increase the rent (at a maximum of 20% of the current rental price) in accordance with the amounts disbursed in said works and subject to the proceedings established in the Law on Urban Leases. 

2.4 Are rents/reviews subject to statutory control in regard to quantum or increase (i.e. rent control)? 

In relation to both non-residential and residential leases, rent is not subject to any statutory control under the Law on Urban Leases. 

Notwithstanding the above, in case of residential leases, if the dwelling is located in a stressed area and the landlord enters into a new lease agreement, the following limitations shall apply: 

1. the rent cannot be higher than the rent of the previous lease agreement which was in force during the last five years (once the rent adjustment clause has been applied) or higher than the limit of the price set out in section (iii) below, if there has been no previous lease. New conditions which may imply payments to be borne by the new tenant that were not included in the previous lease agreement cannot be included in the new residential lease agreement.
2. In addition to paragraph (i) above, the rent may be also increased up to an amount equivalent to 10% of the last rent instalment of the lease agreement that had been in force during the previous five years in the same dwelling, as long as one of the following situations applies:
   1. The dwelling has been subject to refurbishment works (as defined in the Spanish Income Tax Law) completed in the two years prior to the date of signing of the new lease agreement.
   2. The dwelling has been subject to refurbishment or improvement works leading to a non-renewable primary energy saving of 30% in the two years prior to the date of signing of the new lease agreement.
   3. When accessibility improvement measures have been implemented in the two years prior to the date of signing of the new lease agreement.
   4. When the lease agreement is signed for a period of ten years or more, or the tenant is granted with the right to extend the duration on the same terms and conditions for a period of ten years or more, at its sole discretion.
3. If the landlord is a major holder, the rent agreed at the start of the new lease agreement may not exceed the maximum limit of the price applicable under the reference price index system (sistema de índices de precios de referencia). This limitation will apply to new lease agreements entered into after 18 months have elapsed since the New Housing Right Law comes into effect and once the reference price index system has been approved. 

In relation to the reviews, according to the New Housing Right Law, all residential lease agreements in Spain which include the annual CPI variations as a mechanism for the adjustment of the rent are subject to the following limitations during the following years:

• Between 1 January 2024 and until 31 December 2024, only in respect of lease agreements entered into with the major holders, the annual rent update may not exceed 3%.
• From 1 January 2025, and provided that the Spanish National Statistics Institute has approved a new index for the annual updating of residential lease agreements, the variation of such index shall be considered as the maximum increase variation. 

3.1 Internal maintenance, decoration and repair? 

In non-residential leases, the parties are free to agree whatever they deem convenient. Otherwise, legal provisions for residential leases will apply. 

In residential leases, the following rules will be applicable:

• The landlord is obliged to keep the leased premises (both internal and external) in a condition suitable for its use and maintain it in said condition throughout the period of the lease.
• The tenant shall be responsible for minor repairs that are required as a result of wear and tear from the ordinary use of the premises.

3.2 External maintenance, decoration and repair? 

Please refer to question 3.1 above. 

3.3 Structural repairs? 

All costs of repairs which are not “small outlays connected with the ordinary use” of the leased premises must be borne by the landlord, provided the tenant is not involved. 

Notwithstanding the above, the following should be noted:

• The tenant shall be obliged to bear the execution by the landlord of improvement works which cannot reasonably be deferred until the termination of the lease. However, as stated in question 1.5 above, within a period of one month from the notice issued three months in advance therefrom by the landlord to the tenant, the tenant will be entitled to early termination of the lease agreement, except if the works do not affect (or hardly affect) the use of the dwelling.
• The tenant may not, without the written consent of the landlord, carry out any works that change the configuration or impairs the stability or safety of the dwelling. 

3.4 Insurance? 

The Law on Urban Leases does not regulate this matter. It will depend on both regional and state insurance legislation. 

The common practice is that the landlord insures the structure of the premises/asset, and the tenant the inside of the premises. 

3.5 VAT? 

Leases for residential use are exempt of VAT (including garages and ancillary annexes (storage rooms), as well as jointly leased furniture). 

It should be noted that if hospitality services are provided, the rent will be taxed at 10% VAT. 

Leases for non-residential use are charged at 21% VAT. 

3.6 Rates? 

Please refer to question 3.5 above. 

3.7 Other typical outgoings?

The parties will agree who is responsible for the payment of the general/common expenses, subject to certain rules stated in the Law on Urban Leases:

• In case the general/common expenses are to be borne by the tenant, this agreement must be made in writing and the annual amount thereof must also be specified.
• In case of a horizontal division regime, the costs will be allocated proportionally according to the share quota thereof or otherwise, the surface area of the properties.
• During the first five/seven years of the lease, the amount of the general/common expenses (with the exception of taxes) may only be increased, by agreement between the parties, annually and never by more than twice the percentage by which the rent may be increased.
• The landlord is responsible for the costs of property management and the execution of the agreement. 

Notwithstanding the above, the expenses deriving from individual supply services will be accounted for by the tenant. 

3.8 The ability to recoup any landlord outgoings (including management costs) by way of service charges? 

It depends on the agreement between the parties and, in any case, subject to several rules stated in the Law on Urban Leases in favour of the tenant and mentioned herein. 

3.9 Are there any environmental obligations? 

1. The Law on Urban Leases prohibits the development of annoying, unhealthy, harmful, dangerous or unlawful activities on the premises or in the dwelling.
2. The landlord is obliged to deliver a copy of the energy efficiency certificate to the tenant, with the exceptions set out in Royal Decree 390/2021, of 1 June, approving the basic procedure for the certification of the energy performance of buildings (e.g., officially protected buildings, temporary, industrial, defence, non-residential agricultural properties, etc.).
3. The Law on Urban Leases does not include a specific regulation on this subject. It will depend on regional and state environmental legislation.

4.1 Are terms of leases/contracts recognised and supported by case law in the jurisdiction? 

Yes. 

5.1 To be recognised in the courts, does an appraisal have to be prepared by some domestically regulated/qualified party or is an RICS (Royal Institution of Chartered Surveyors) qualified appraisal report accepted and recognised in each jurisdiction? 

Pursuant to Royal Decree 775/1997 of 30 May 1997 on the legal regime for the approval of valuation services and companies, the appraisal must be prepared by a qualified appraiser which is recognized as a professional appraiser by the Bank of Spain and registered in the official register of valuation companies. 

5.2 Is it possible/customary to obtain environmental reports from a local government agency or a qualified, insured environmental professional? 

It is not customary. However, the owners are obliged to notify the existence of pollution on the property or the development of potentially polluting activities. In this regard, there are certain registers and inventories managed by the different municipalities (e.g. of contaminated land) that can confirm the environmental status of the properties. Furthermore, in the event that potentially polluting activities are carried out, a report confirming the total decontamination of the property must be issued at a regional level, after carrying out the closure plan for the activity. 

On the other hand, although it is not customary, environmental due diligence reports can be requested from qualified environmental professionals in relation to certain transactions (e.g., demolition and construction of buildings). 

5.3 Is it possible for liability in respect of past or present breaches of environmental laws to attach to a lender by it holding or enforcing a mortgage over real estate? 

A lender that has the benefit of a mortgage shall not be considered responsible for breach of environmental laws, although liability may arise in the event that it acquires the real estate upon enforcement of the mortgage.