Home Swapping: What is it and how Does it Work?
June 26, 2025
When talking about home swapping, doubts often arise: is it legal? Can it be done with a mortgage? How should you proceed? This mechanism, less common, but fully in force, can be a very interesting option for people who want to change homes without going through the traditional buying and selling process. In this post we explain what a home swap is, how to do a home swap step by step, and whether you can swap a home with a mortgage.
What is a Home Swap?
A home swap is a contract by which two people agree to exchange their homes, without the need for a direct financial transaction as in a conventional sale. That is, each one transfers the ownership of their property in exchange for receiving the other.
This type of agreement can be very useful, for example, between families who want to adapt the home to new needs (size, location, etc.) or who want to change cities. It is also a very interesting option between individuals who want to avoid additional buying and selling expenses or long waiting periods.
Home swaps are regulated by the Civil Code and have the same legal validity as any other contract for the transfer of assets, provided that the established conditions are met.
How to Do a Home Swap?
To carry out a home swap between individuals, it is important to follow a clear and legally correct process. The main steps are:
- Valuation of the properties: Both parties must agree on the value of the homes to determine if there are financial compensations or if the exchange is equitable.
- Documentation: It is necessary to collect all the documentation of the properties (deeds, energy efficiency certificates, IBI, etc.).
- Swap contract: This document must include the data of the owners, the description of the properties, the conditions of the exchange and, if applicable, the agreed financial compensation.
- Signature before a notary: The swap contract must be formalized in a public deed before a notary.
- Registration in the Land Registry: For the change of ownership to be effective, it is necessary to register the operation in the Registry.
In addition to all this, the tax implications must be taken into account: a swap is taxed as a property transfer and may involve the payment of ITP (Property Transfer Tax).
Can You Swap a Home with a Mortgage?
One of the most common questions is whether you can swap a home with a mortgage. The answer is yes, but with conditions. In these cases, authorization from the bank is needed, since the property is linked to a debt. The options can be:
- Cancel the mortgage before the swap.
- Replace the debtor (subrogation) if the bank accepts it.
- Agree on financial compensation if the values of the homes are unequal.
It is highly recommended to have legal and financial advice before carrying out a home swap with mortgage charges, to ensure that the entire process is legal and viable.
At Espígul We Accompany You in the Swap Process
At Espígul we know that each real estate transaction is unique. If you are considering doing a home swap between individuals, our team will help you manage the entire process: from the valuation of the properties to the drafting of the contract and coordination with notaries and administrations.
With us, you have the security of having professionals who look after your interests and guide you every step of the way. If you want to make a swap in an agile, legal and safe way, contact Espígul and we will help you find the best option for you.
