Our resident expert, Mathew Wood of Hola Properties – headquartered in Lanjaron – explains the ins and outs of using digital signatures for property transactions, and how you can obtain your dream house without national or international travel stress.
DIGITAL technology has revolutionised many aspects of our daily lives, from using apps to get discounts in the supermarket to how we handle legal transactions.
In Spain, the use of digital signatures and e-signatures has become increasingly prevalent, especially in the realm of property sales. And this is good news for… everyone.
An established legal framework surrounds digital and e-signatures in Spain, including for property transactions. Hola Properties uses these technologies to streamline the sales process, making it more efficient for sellers and buyers – particularly when dealing with international clients.
A safe legal framework of digital signatures in Spain
Digital signatures in Spain are regulated by the European Union’s eIDAS Regulation (Regulation (EU) No 910/2014 on electronic identification and trust services for electronic transactions in the internal market). This regulation provides a standardised legal framework for electronic signatures across EU member states, ensuring that e-signatures have the same legal standing as traditional handwritten signatures.
Types of electronic signatures
Under eIDAS, there are three types of electronic signatures:
- Simple Electronic Signatures (SES): Basic electronic data used to sign documents, such as scanned signatures.
- Advanced Electronic Signatures (AES): Signatures that are uniquely linked to the signatory, capable of identifying the signatory, and created using electronic signature creation data that the signatory can, with a high level of confidence, use under their sole control.
- Qualified Electronic Signatures (QES): Advanced electronic signatures that are created by a qualified electronic signature creation device and based on a qualified certificate for electronic signatures. QES have the same legal effect as handwritten signatures across the EU.
In Spain, the QES is considered the ‘gold standard’ and is commonly used in official and legal documents, including property sales contracts.
Digital signatures specifically in property sales
Using digital signatures for property sales in Spain has many advantages. These include increased efficiency, security, and convenience. Traditional property transactions (as many of you will know!), involve extensive paperwork, multiple signatures, and – frequently – the physical presence of sellers and buyers. This might not be practical or convenient, especially when the persons concerned are geographically distant.
The good news is that digital signatures simplify this process by allowing documents to be signed electronically, reducing the need for physical meetings and speeding up the transaction process.
Why is this so good?
Because digital signatures are legally recognised and enforceable in Spain for property sales, they apply to a wide range of documents. These include sales agreements, contracts, and other legal documents. By using digital signatures, we can ensure that these documents are legally binding and can be upheld in court, if necessary.
In general, digital signatures can greatly reduce the time required to complete property transactions. Sellers and buyers can sign documents from anywhere in the world, eliminating the need for their physical presence – no planes, trains and automobiles required!
Digital signatures also provide a high level of security, ensuring that documents are tamper-proof, and the identities of the signatories are verified. Advanced encryption methods safeguard the integrity and authenticity of the signed documents.
Ideal for international buyers
Want to buy a property in Spain but you are based in the UK, Holland, or even the US? Hola Properties deals with buyers and sellers from different parts of the world. Digital signatures allow them to navigate the property transaction process without costly and time-consuming travel.
In today’s globalised world, cross-border transactions are commonplace. Spanish clients find the digital process useful as they sometimes have family members located across Spain, or other parts of the world. Imagine a case where an inherited house has seven owners (siblings) spread all over the world! Digital signatures make dealing with that situation a breeze.
Save money on your property transaction
Using digital signatures also saves money. Traditional property transactions involve various expenses, including printing, courier services, and travel costs. Digital signatures eliminate many of these costs, making the transaction more cost-effective for everyone concerned.
Furthermore, by complying with the stringent legal standards set by the eIDAS, you have a guarantee that the signed documents are legally binding and recognised across the EU. It is a win-win situation, when compared to the older processes.
For more information on how digital signatures can help your property transaction, contact Hola Properties.
