Before finalizing any transaction, you should understand what “compensation for eviction” entails—a right for the buyer and an obligation for the seller. It is a legal concept designed to protect any agreement involving the transfer of ownership of an item.
The right to be compensated for any encumbrances on the property, or to ensure the peaceful enjoyment of it, is a prerogative of the buyer. For their part, the seller is legally obligated to deliver the property under the agreed-upon terms, and both parties must be aware of this.
According to the Federal Civil Code, indemnification for eviction means that the seller of an asset is liable for any eviction suffered. Of course, the eviction must be suffered by the buyer, who is deprived of all or part of the acquired asset due to any circumstance or third party.
In Spain, indemnification in the event of eviction is considered a standard clause in any transaction, especially a sale involving the transfer of ownership. In other words, even if the contracting parties do NOT stipulate anything regarding eviction, it is presumed to be the seller’s responsibility.
However, it should be clarified that this obligation may also be waived; that is, it is a provision that allows for an agreement to the contrary. This occurs in some cases where the buyer expressly waives their right to remedy in the event of eviction, but is unaware of a latent defect.
In this case, it is presumed that the seller acted in bad faith, and the seller will immediately be obligated to remedy the defect as soon as possible. Thus, the waiver of the right to remedy will be deemed not to have been agreed upon, and this right will be enforceable against the seller, who must refund the full purchase price received.
Remedy for eviction applies in sales transactions and takes effect when the following conditions are met:
In this case, the buyer is wholly or partially deprived of the use of the purchased property.
In some cases, the deprivation may result from a final judgment that recognizes a third party’s prior right of priority over the property.
This circumstance applies only if a valid sales contract between the buyer and the seller existed prior to the new negotiation.
Under these circumstances, the buyer is required to notify the seller of any claim that could give rise to eviction. In any case, the buyer will always have the right to demand legal remedy, and these mechanisms apply to the purchase of any property.
In Spain, there are, specifically, two types of eviction:
This occurs when the buyer loses total control or possession of the sold item and may claim against the seller for the deprivation of their right. In other words, the seller is obligated to refund the purchase price, plus interest, any court costs, rental income, etc.
This situation arises when the eviction is only partial, meaning that the buyer does not lose the entire property sold, but only a part of it. For example, in the sale of an assembly plant whose machinery is pledged as collateral for a loan, the buyer does not lose the assembly plant itself, but does lose the equipment.
In both cases, the buyer’s right to compensation arises immediately, and the seller must refund the total purchase price received. It is important to note that this is a legal guarantee that applies even if the parties did not specifically stipulate it in their purchase agreement.
When remedies for eviction are granted, their effects under civil law are not limited to the simple return of the property. The Civil Code establishes specific damages to be paid by the seller, which include the full price paid, any proceeds the buyer must pay to the prevailing third party, litigation costs, and, where applicable, contract expenses. If the buyer has been completely deprived of the property, the compensation covers the full value of the property; in the case of partial eviction, the compensation is adjusted proportionally to the portion actually lost, thereby preventing unjust enrichment for either party.
In Spain, eviction applies when any of the following conditions are met:
This refers to full or partial possession of the property the buyer has just acquired, and a third party claims a superior right to it. This interference with the buyer’s property right is a prerequisite for the remedy for eviction to apply.
In these cases, a court has ruled in favor of a third party who is presumed to have demonstrated a better claim to the property in dispute. This is presumed to have been preceded by legal proceedings initiated by an interested party seeking to establish their claim to the property.
This may or may not be accompanied by a final court judgment, as there is a third party who claims to have a prior, preferential right. This occurs when the seller has previously transferred the property prior to the new transaction, which could imply an act of bad faith on the part of the seller.
Since this is a legal concept that is presumed to be implicit in every transaction—especially a sale—the buyer has the right to demand it. However, to be able to demand relief from eviction, the following is required:
Supreme Court case law has precisely defined the main requirements that must be met to grant relief for eviction. The courts insist that there must be a final judgment recognizing a third party’s prior right to the property—prior even to the sale itself—and that the buyer was neither aware of nor assumed that right at the time of contracting. This line of case law reinforces that eviction cannot be presumed: it must be proven in court, providing certainty to both the buyer and the seller regarding the actual scope of this guarantee.
Remedy for eviction is an obligation that always falls on and is the sole responsibility of the seller. The seller is the only party obligated to provide remedy, provided that the seller demands it.
The statute of limitations for claiming remedy for eviction expires after 15 years, as provided in Article 1964 of the Spanish Civil Code. This period begins from the moment the buyer suffers eviction or the loss of the purchased property occurs.
After this period, no legal claim may be filed, as this is a statutory provision to which the contracting parties must adhere. This is something that those entering into a purchase and sale agreement should keep in mind in particular.
For the buyer to successfully pursue a claim, notifying the seller is an essential step: this must be done as soon as the buyer becomes aware of the claim that could lead to eviction, so that the seller can intervene in the process and defend the property. In addition to this requirement, it is important to keep in mind the deadlines for filing a claim, since allowing time to pass without taking action can weaken the buyer’s position vis-à-vis the seller, even before the statutory limitation period expires. Acting diligently from the outset is the best way to ensure this right is upheld.
The difference between these two legal concepts lies in the fact that redress for eviction guarantees the buyer that they will not be dispossessed of their property. Hidden defects, on the other hand, may refer to non-obvious damage to the property that affects its functionality or value.
It is worth noting that defects are a type of imperfection or damage, but they can also involve a change in the quality or characteristics of the item. Here, we must exclude any damage that can be identified during a routine inspection prior to the transfer of the item.
We must also consider the buyer’s level of knowledge; for example, if the buyer is an expert or a mechanic and fails to detect the latent defect. In such cases, it is assumed that the buyer should have foreseen the defect based on their expertise, and therefore the seller may not be liable for the defect.
A classic example of remedy for eviction may occur in the purchase of real property if, after the purchase, something previously unknown is revealed. For instance, the seller may not have had a clear title to the property due to a mortgage they failed to disclose.
This, of course, results in the buyer’s immediate loss of the acquired property, thus constituting a case of remedy for eviction. In this scenario, the seller is obligated to refund the total price received for the purchase of the property, at least until the mortgage is paid off.
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In Spain, any real estate transaction is legally protected and guaranteed because of the legal concept of “saneamiento por evicción” (remedy for eviction). This is a right that protects the buyer from any interference with their legitimate right to ownership, as the buyer is considered to be acting in good faith.
However, it’s important to remember that the buyer may eventually waive this legal protection, leaving them at the mercy of the seller. This waiver, of course, has an exception and applies when the seller’s bad faith is proven after the transaction has been finalized.
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41 Av. del Oeste
Funded
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Target
€763,249.36
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