The importance of legal representation on signing legal documents before a Notary Public

Raymundo Larraín Nesbitt, July, 14. 2017

Lawyer Raymond Nesbitt explains the importance of being represented by your own lawyer on signing any legal document before a Notary Public.

By Raymundo Larraín Nesbitt
Lawyer – Abogado
14^th of July 2017

A recent case published in Diario Sur in English illustrates the importance of being assisted by your own lawyer on signing legal documents before a Notary Public. An elderly couple, with a villa in Marbella, was seeking a fast loan of €25,000 to finance medical treatment.

The couple approached a group that advertised locally and were cajoled into drafting a document and have it witnessed by a Spanish Notary Public. The foreign couple were goaded to believe, and wrongly assumed, that the Notary Public, being a lawyer himself, would act impartially and would warn them in case there was some odd clause in the contract. They did not believe retaining a lawyer was necessary.

The couple were forced to return to their home country to take care of one of the partners who was ill. Upon their return to Marbella some time later they discovered their villa had its electrical supply cut off. On further investigation, it transpired the property no longer belonged to them, it belonged to a company.

What this couple had in fact done at the Notary was to sign their property over in a Deed to a company as a share capital increase of said company. In return, they had been given shares of the company. So basically, they had undersold a luxury villa in Marbella to a company in exchange of 25k! A tall price to pay for a small loan.

Had this couple been represented by their own lawyer, he would have immediately picked up on the fraud and refused to allow them to sign the Deed. But because the couple thought they knew better, and confident that the Notary would act on their behalf, they signed over their Spanish property for a fraction of its real market price. Cases like this are not rare and happen frequently.

What lessons can be gleaned from the couple’s misfortune?

A Notary Public is a public servant whose role is to ensure legalities are observed and that payment of taxes will be carried out to the State. His role is to be neutral and does NOT advise the parties, much less in their own language, nor translates documents. Do not rely on a Notary Public to act as your own private lawyer because that is not his role.
A lawyer, solicitor in Spanish, is a qualified agent that acts and defends his client’s interests. Skimping on lawyer’s fees is ill-fated as the only worse off will always be the client.
You must be wary of signing any type of legal documents at a Notary Public without being represented by your own lawyer. Beware of those who advocate that hiring lawyers is an unnecessary expense. Think for a moment what vested interest they may have in their being no lawyers involved.

Larraín Nesbitt Lawyers, small on fees, big on service.

Larraín Nesbitt Lawyers is a law firm specialized in taxation, inheritance, conveyancing, and litigation. We will be very pleased to discuss your matter with you. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on (+34) 952 19 22 88 or by completing our contact form.

Legal services Larraín Nesbitt Lawyers can offer you

Loans related articles

Lifetime Loans or Reverse Mortgages in Spain Explained – 21st February 2011
Advice to Struggling Mortgage Borrowers in Spain – 8th March 2011
Spanish Mortgage Loans: Beware of Abusive Clauses – 8th January 2012
Spanish Mortgage Loans: An Overview – 21st February 2012
Mortgage Collar Clauses Revisited (‘Cláusulas Suelo’) – 8th December 2013
Bank Repossessions in Spain – 21st February 2014
Bad Debtor’s List (‘Fichero de Morosos’) – 8th April 2014
Spanish Creditors Pursuing Debts Abroad – 8th May 2014
Dación en Pago Explained or how to hand back the keys – 8th December 2014

Please note the information provided in this blog post is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. VOV.