What does a notarized agreement cover for you?

At Dutch Value, every investment is recorded in a notarial deed under Spanish law. This is a deliberate choice. In this article, you will read about the role of a notary in Spain, what the agreement entails, and what it means for you.

The role of the notary in Spain

In Spain, the notary, or 'notario', is an independent public official. They do not represent either party, but instead safeguard the legal certainty of the agreement. Just as in the Netherlands, the notary plays a central role in real estate and business matters.

The notary verifies, among other things, the identity of the parties, their authority to enter into the agreement, and whether the agreement complies with the law. Additionally, they explain the content before the document is signed.

Why use a notarial deed?

• Certainty regarding the agreement. A notarial deed carries significant legal weight. There is little room for dispute later on regarding what was agreed upon.
• Independent oversight. An independent legal expert reviews the document before you sign.
• Clarity for both parties. It is also important to us that agreements are unambiguous and verifiable.

What is included in the agreement?

The exact content varies by project and model. In general, you will find the following components.

• The project you are investing in and the amount of your participation.
• The chosen model—profit sharing, fixed interest, or hybrid—along with the corresponding percentages.
• The term of the investment and the timing and method of payment.
• Any security provided, such as a mortgage collateral in the case of fixed interest.
• Your rights to information and reporting during the term.
• The arrangements in the event that a project does not proceed as planned.

What the agreement does not do

A notarial agreement records arrangements, but it does not eliminate business risk. A project can underperform, even if everything is legally sound. That is why you receive a risk disclosure with every project proposal, ensuring you are aware of the risks before you sign.

Signing remotely

If you live in the Netherlands or Belgium, you do not necessarily have to travel to Spain. Depending on the situation, you can sign via a power of attorney or through a notary in your own country. We will discuss the options with you to ensure the process is as simple as possible.

Would you like to see a sample of our agreement? If you are interested, you will receive a sample contract and a project proposal following our introductory meeting.

This article is for general information purposes only and does not constitute legal advice.