I have sold my home in Spain. Do I need to cancel the utilities contracts?

When selling property in Spain, it is typically unnecessary to cancel utility contracts or direct debit orders. The common practice is for the new owner (or their legal representative) to transfer these contracts into the buyer’s name. This approach benefits both parties, ensuring a seamless transition and uninterrupted utility service throughout the process.

When both parties have legal representation, the transfer of utility contracts typically goes smoothly. However, if the buyer isn’t using a lawyer, it’s important for you or your lawyer to verify that the contracts are actually changed into the buyer’s name. Simply canceling direct debits won’t suffice, as invoices may still be issued in your name if the contracts aren’t transferred. In cases where the new owner does not assume the contracts, it may be necessary for you or your lawyer to cancel them, requiring the buyer to initiate new contracts in their own name, which could cause some temporary inconveniences.Fortunately, this scenario is uncommon—most buyers or their lawyers handle the contract transfers promptly.

One important aspect to be aware of when selling your property in Spain is that both electricity and water companies invoice in arrears. This means it’s entirely normal to receive a final electricity and water bill after the sale has completed, and this doesn’t indicate that the contracts weren’t successfully transferred. It’s common for sellers to assume that any post-sale utility charges debited from their account don’t apply to them, given they no longer own the property. As a result, some may even cancel direct debits to prevent further charges, which is a mistake that could lead to unpaid bills in their names. If you’re unsure about a particular bill, consult your lawyer, who can confirm whether it applies to your period of ownership. Typically, you can expect a final bill, though some charges may cover the brief time between the sale completion and the utility company’s contract update. Your lawyer can clarify any charges and, if necessary, recover any overpaid amounts from the new owners. Therefore, it’s advisable to consult with them before canceling any direct debits or contracts..

If you are in the process of selling your property in Spain, you may find it beneficial to read our post about SELLING A PROPERTY IN SPAIN