Have you ever wondered what the entries that appear in the section of charges of a Nota Simple (Land Registry information note) mean, such as:
"This property is affected during the term of FIVE YEARS counted from the day ________, to the payment of the liquidation or liquidations that, in its case, can be turned by the tax of TP and AJD, being released by the sum of _________ euros satisfied by self-liquidation. (Esta finca queda afecta durante el plazo de CINCO AÑOS contados desde el día ________, al pago de la liquidación o liquidaciones que, en su caso, puedan girarse por el impuesto de TP y AJD, quedando liberada por las suma de _________ euros satisfecha por autoliquidación)"
In reality this is what is known as a fiscal affection and, in principle, for the non-expert it causes great initial concern because it would appear that the property is encumbered by a series of liquidations that are pending payment. Which, in general, is not the case although always, since this information is usually handled at the time of buying a property, it is advisable to have the information studied by professional experts.
But, What is a Fiscal Affection?
It is also known as marginal note of fiscal affection and it is incorporated every time that a property is transferred by means of an operation subject to a tax like those of Patrimonial Transmissions, Legal Documentary Acts or Inheritance / Donations. It is really an entry that links the registered property, to the possible complementary liquidation of the tax to which the operation was subject for a period of time of five years. It is like a warning to possible acquirers that a complementary liquidation of the tax can take place. Taking into account the nature of the same ones, the important thing is to verify that they are expired and, in the case that they were not, that the liquidation of the corresponding tax was done correctly since in opposite case the Tax Office could claim the complementary liquidation of the tax to the new purchaser.
** Since each case is different and this article does not really go in depth on the subject, we recommend to consult the contents of this article with your trusted lawyer.