If the mortgage is paid off, does it disappear from the nota simple?

No. Paying off the loan does not erase the registration: the mortgage keeps appearing until it is cancelled at the Registry with a cancellation deed. It is one of the most frequent findings and can be solved, but it should be dealt with before selling.

What is a preventive annotation?

A temporary entry warning of an ongoing situation (embargo, lawsuit, precautionary measure, inheritance) that may become a definitive registration. Its mere presence requires reviewing the case before buying.

Can I buy a property with a usufruct on it?

You can buy the bare ownership, but the usufructuary keeps the use while the usufruct lasts. It is a different kind of transaction, with its own valuation and risks, and it must be perfectly reflected in the contract.

Does the nota simple show community fees or IBI debts?

No. Community-of-owners debts and IBI bills are not recorded at the Registry. They are checked by requesting a debt certificate from the community manager and IBI receipts from the seller.

How to read a nota simple: ownership, charges, mortgages and embargoes explained

The structure of a nota simple

Although the format may vary slightly, every nota simple is organised in blocks best read in order:

Property identification: finca number, Registry office, municipality and CRU/IDUFIR. First check that the property is the one you wanted (address and description).
Description: type of property, surface area, boundaries and share in the community of owners. Compare the surface with the listing and with the Catastro.
Ownership: who appears as registered owner, in what proportion if there are several, and the title of acquisition (purchase, inheritance) with its registration date.
Charges and encumbrances: everything that limits or burdens the ownership.
Pending entries: transactions filed at the Registry but not yet registered.

Ownership: the first check

Essential when buying: the seller must be the registered owner. If the seller does not match the registered ownership (for example, a developer that bought but has not registered, or an heir who has not yet accepted the inheritance), the transaction needs explanations and prior steps. Also check:

Whether there are several co-owners: all of them must take part in the sale.
The matrimonial regime if the owner is married (community property may require the spouse's consent).
The age of the registration: a very recent registration just before the sale deserves a question.

The charges: what each one means

Hipoteca (mortgage): the property guarantees a debt. A registered mortgage does not disappear when the loan is paid off: it must be cancelled at the Registry. When buying, cancellation is usually required before or at the moment of the purchase deed.
Anotación preventiva de embargo (preventive embargo annotation): someone is suing the owner and the property is flagged. Buying with an embargo annotation means taking on a serious risk.
Anotación preventiva de demanda (preventive lawsuit annotation): an ongoing lawsuit that may affect ownership or the property.
Usufructo (usufruct): someone other than the owner has the right to use the property (very common in inheritances: the widow or widower as usufructuary, the children as bare owners). Buying bare ownership changes the transaction completely.
Servidumbres (easements): rights of way, of views, of utility conduits; they limit the use of the property.
Condición resolutoria or prohibición de disponer: limitations that can invalidate or complicate the sale.

Pending entries

If a transaction has been filed at the Registry but not yet registered (a recent purchase, an inheritance), the note reflects it. This is fresh information that can change within days: repeat the note before signing.

Warning signs, summarised

The seller is not the registered owner, or a co-owner is missing.
An outstanding mortgage with no clear cancellation plan.
Any preventive annotation of embargo, lawsuit or precautionary measure.
A lifetime usufruct over the property.
Significant differences in surface or description compared to the listing.

Facing any of these signs, the prudent move is to pause the transaction and review the case with a professional before signing anything.

A worked example: a property with a mortgage

Take the nota simple of a flat you want to buy. This is how to read it:

Property: number 18.230, municipality of Seville, flat 3A of 92 m². Check the address matches the listing exactly.
Owner: a single person is registered, who acquired by purchase in 2015. That is who should sign the sale (or someone holding their power of attorney).
Charges: a 2015 mortgage in favour of a bank for 140,000 euros appears. Not unusual and not a problem if it is cancelled in the transaction, but you need to know: the buyer will normally require it to be cancelled before or at the signing.
No preventive entries: no seizures or pending lawsuits are noted. That is the part that most deserves checking.

Warning signs you should not ignore

Preventive seizure entry (anotación de embargo): someone is claiming against the owner and the property could end up affected.
Entry of a lawsuit or judicial decision: ongoing litigation over the property.
The seller is not the registered owner: it can be legitimate (an unregistered inheritance, a power of attorney), but understand why before paying anything.
Usufruct or right of habitation: someone has the right to use the home even though they do not own it.
Description that does not match (square metres, boundaries, garage or storage room missing): clarify it before valuing the price.

What to do if something odd appears

It does not necessarily mean the purchase is impossible, but it does mean you need answers before signing: ask the seller in writing, review the deed and, if the matter is serious (seizure, litigation, ownership discrepancy), consult a professional. The nota simple gives you the clue; the solution usually involves cancelling the charge within the transaction itself or resolving the underlying proceeding.

A final tip

Request the nota simple as close to signing as possible: it reflects the registry situation on its issue date, and a clean property today can receive an entry tomorrow. In purchases with a deposit contract (arras) in between, it is common to request one at the start of the negotiation and another just before signing.