What Is an Embargo in Spain, How to Detect It and How to Cancel It When Buying a Property

When buying a property in Spain, it is essential to check whether the home is affected by an embargo (lien or seizure). Failing to do so can lead to major financial and legal problems.

What is an embargo?

An embargo is a registered restriction imposed by a court or government authority on a property as a guarantee for unpaid debts. It prevents the owner from freely transferring or selling the property without settling the debt.

Common types of embargoes include:

• Judicial embargoes: from civil, labour or criminal proceedings.
• Administrative embargoes: from unpaid taxes, social security debts, or fines.

How to detect an embargo?

Request a land registry extract (nota simple) before signing any agreement. It shows any burdens registered against the property, including mortgages, tax liens and embargoes.

It is also advisable to request:

• A debt certificate from the creditor.
• A certificate from the homeowners’ association confirming no outstanding community fees.

What happens if a property with an embargo is purchased?

The ownership transfer can be registered without issue, but the embargo remains in force. The new owner inherits the risk, and the creditor may proceed with enforcement (auction or seizure) even after the sale.

In other words, you can register the deed, but the debt follows the property, not the person.

How to cancel an embargo?

1. 

Obtain a debt certificate

Ask the creditor (court, tax agency, bank) for an updated statement including all amounts due: principal, interest, and costs.

2. 

Withhold funds at the notary

At the time of signing, a portion of the purchase price is withheld and paid directly to the creditor, usually by bank cheque.

3. 

Pay and cancel at the Land Registry

After payment:

• Judicial embargoes: the court issues a cancellation order (mandamiento de cancelación).
• Administrative embargoes: submit the payment receipt and a cancellation request to the relevant body.

Then the cancellation order is submitted to the Land Registry, removing the embargo from the title.

Final advice

Hire a qualified real estate lawyer to handle the registry checks, debt clearance and ensure the property is transferred free of burdens. It is the best protection for your investment.